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06/17/2022

STUDY: Hourly Employees Remain Deeply Dissatisfied 

While the Great Recession is slowing, Legion Technologies’ research highlights significant shift in power from employers to employees.
Anna Wolfe
Senior Editor - Restaurants
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The majority of hourly workers are deeply dissatisfied with their jobs, and 75% of workers ages 18-24 plan to look for a new job within the next 12 months, according to new research from  Legion Technologies and its 2022 State of the Hourly Workforce Report.

Based on feedback from more than 1,500 hourly employees, the report showed an Employee Net Promoter Score (eNPS), which determines loyalty and satisfaction on a -100 to 100 scale, of -7 among hourly employees. 

The 2022 State of the Hourly Workforce Report, which was conducted by Propeller and commissioned by Legion, surveyed 1,016 hourly workers and 505 managers in the United States. According to the findings, 57.6% of hourly employees have no plans to leave their position in the next 12 months. However, 75% of those planning to look for a job immediately or within the next 12 months are younger employees (aged 18-24) who make up one of the fastest growing segments of today’s 73.3 million hourly workers and managers across the country.

Greater Flexibility Wanted 

The survey found that hourly workers want their companies to offer greater schedule flexibility and autonomy in the workplace, with 85% of hourly workers surveyed saying it's important to have schedule control. This desire is most prominent among younger generations, who are increasingly entering the workforce. Hourly workers aged 18-24 are 5 times more likely to have a primary job and a side gig job than older age groups because they don’t have enough money to cover food and the cost of rent.

Other than pay, greater recognition and rewards are the incentives most likely to persuade hourly employees to leave and take a new job (58.3%), followed by the flexibility to pick up extra shifts and swap shifts (56.3%). Managers, specifically, agree with the latter: besides pay, 63% of managers find control and input into work schedules as the greatest incentive for prospective employees they interview, followed by greater transparency into shift assignments and hours given (52.4%).

“It’s important for employers, especially those who rely on younger employees, to keep ongoing labor shortages and staffing challenges in mind to future proof their business in the face of economic uncertainty,” said Sanish Mondkar, CEO and founder of Legion Technologies. “To attract and retain hourly employees, employers must invest in workforce incentives and technologies that offer schedule flexibility and control, as well as improve communication and strengthen financial health by providing instant access to earned wages. Employers risk losing top talent to companies that show their hourly employees they are valued by providing them with the benefits they want and need.”

More key findings from hourly workers surveyed include:

  • Hourly employees value pay autonomy, with nearly 75% (74.5%) stating they would be most motivated to pick up extra shifts by being paid a premium for the shift
  • 64% of females who hold more than one job do so because they don’t make enough money to cover rent and food compared to 49.2% of males
  • More than 80% of 18-24 year-olds said it would be important to very important to get paid early if they needed the money versus nearly 39% (38.8%) of respondents ages 55-64

The survey also underscores the need for companies to recognize the daily challenges their managers undergo when it comes to creating schedules and communicating with employees. To help alleviate manager frustration and increase employee satisfaction, businesses can digitally transform their processes through automation and modern communication tools.

Key manager survey findings include:

  • 42% of managers surveyed said managing call-outs and no-shows takes the most time and effort closely, a 7% increase from last year’s findings
  • Other than pay, nearly 40% (39%) of managers surveyed believe their employer could improve their experience by providing tools that make it easier to communicate with their team
  • Managers overwhelmingly agree (84%) that efficiency and productivity would improve if they were able to communicate with employees through the same app that they use to view their schedules

“If companies expect to improve employee attrition in today’s increasingly uncertain economic climate, they need to stop overlooking the hourly manager and employee experience to ensure recent gains are not lost,” added Mondkar. “By having the right technology and tools to automate tasks and improve employee communications, managers can spend more time upskilling and coaching employees to improve both customer and employee experiences.”

Legion WFM helps enterprises to optimize their labor efficiency through AI-powered demand forecasting, labor optimization, automated scheduling, and time and attendance. At the same time, the Legion WFM mobile app enables employers to offer an enhanced hourly employee experience with self-service capabilities, gig-like schedule flexibility, modern digital communication tools, instant access to earned wages, and performance and rewards tailored to the hourly employee.

To view the 2022 State of the Hourly Workforce Report, click here.