Advice on Retention of Young Hourly Workers

The above subject is No. 1 on many employers' lists, and Harvard Business Review in recent years surveyed young workers to understand how employers can improve engagement and retention in a wide variety of industries.  The survey found that the job satisfaction survey was driven in large part by how they thought their manager treated them.  Being treated fairly and with respect was more important than income.  For example, one pizza company sends all front line managers to "The School of [Company Name]" within the first three to six months of their tenure.  It is a management training program that coaches new managers on communication, people management, and building a good workplace culture.  Another major employer has an Engagement Training Program to help front line managers provide recognition to employees, listen to and solve problems, and deliver specific, actionable feedback.

The second criterion pertains to offering professional development opportunities.  The idea is to offer a job as a career or a stepping stone to a career.  Chipotle offers a clear career path for entry-level employees on its website and directs new hires to it.  Over 90% of Chipotle's managers are promoted from within.  Employers can also support educational attainment for young people.  Starbucks recently expanded its College Achievement Plan to offer free tuition for online classes and individualized guidance to those that want to know more about college.  

The vast majority of young people surveyed said that they would be more likely to stay in their current job if they had more control over their work schedules.  The most important aspects of scheduling were predictability and flexibility.  Young people want to know the days and times they are going to work in advance, but they also want their managers to be flexible when unexpected events occur outside of work arise.  Through such flexibility, employers like QuikTrip and Trader Joe's report annual turnover rates below 15% versus a nearly 60% average for the retail industry. 

Offering access to key benefits is not surprisingly a plus, but what is a little surprising is offering opportunities to work more hours.  While young people value benefits like overtime pay, 401(k) retirement-savings plan, and paid time off, the most important benefit by far is health insurance.  Companies like UPS, Lowes and Starbucks are in high demand in part for offering some form of health insurance to part-time employees.  In an interesting survey development, more than 50% of the young people surveyed wanted to work more hours, or the opportunity to do so.  

Another source of advice states a simple principle, the need to assess, plan and modify any negative impact of employee experiences.  Such efforts show employees that they are valued. 

One area mentioned by some experts is onboarding.  Employees reportedly are retained in companies that have a formal onboarding program at a much higher rate than those that do not.  Techniques include a video about company culture and giving each employee a mentor who tells them what to expect.  Assigning someone to take each employee under their wing may help, including taking the new employee to lunch.  Introducing the new employee to those on the organizational chart or who to call about payroll and the location of facilities are quite helpful.  Many companies have designated persons to check with a new employee to see how they are doing.  Some companies even have special "ambassadors" for this purpose.  During those regular check-ins, specific questions about job satisfaction are asked.

In particular, employers should review the provisions of their health plans and state law, carefully follow ERISA’s requirements, and coordinate with their service providers to ensure the proper administration of COVID-19 testing claims.

This is part of our April 2022 Newsletter.

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