Michael Spataro is the chief customer officer at Legion Technologies, an innovator in workforce management (WFM).
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The phrase “future of work” often paints a markedly corporate portrait: Video calls from the living room couch, offices designed for face-to-face connection (and vacant on Mondays and Fridays), and squeezing in workouts and time with the family between meetings. It’s a life of balance.
But what does the future of work look like for hourly employees who work in stores, restaurants and clinics instead of swanky offices? While overall unemployment has returned to pre-pandemic levels, some industries that rely on hourly workers are still embroiled in a labor crisis—one that I believe could turn into an exodus if leaders don’t realize the employee experience is equally as important as the customer experience.
For our “2023: State of the Hourly Workforce” report, my company polled more than 1,500 hourly employees and managers in mid-2023 on the biggest challenges they’re facing at work, the benefits they desire and the workplace factors that will keep them on the job. We found that hourly workers want similar flexibility and autonomy that salaried workers are getting—the kind they might get from gig work, which continues to lure many away from their current positions. An overwhelming 96% of hourly employees said schedule flexibility is the No. 1 benefit motivating them to take a new hourly job.
The strain of ongoing economic turbulence is impacting these employees’ livelihoods. While 78% of hourly employees said economic uncertainty has affected their work environment, with a rise in upset customers and increased tension across teams, it’s also stretching their wages. As the cost of living rises, 20% of hourly workers reported needing multiple jobs to cover their everyday expenses.
Consequently, some companies have begun introducing earned wage access programs to give employees immediate access to pay. This could potentially reduce the need for them to take additional employment and can certainly help offer peace of mind. But this on its own isn’t enough.
Businesses must do better for hourly frontline workers. I believe we can create a future of hourly jobs where workers have the schedule and pay flexibility they need, workers are more connected to their jobs and the workplace experience, and automation removes tedious work so they can focus on what matters.
Here is my three-step blueprint to make that vision a reality.
1. Consider technology that can improve the employee experience.
Leaders today have access to a bevy of technology to improve the workplace environment, and advances in artificial intelligence and automation are only widening the breadth of solutions. Employee-centric technologies can help produce more agile workplaces grounded in flexibility and efficiency.
That said, adopting new technology won’t benefit a business if employees aren’t properly trained, especially when those technologies directly impact their experience. For example, if a company offers early access to pay, it must ensure employees know how to navigate their workforce management or payroll program to access those benefits. Employers should look for technology that is easy to use and doesn’t require extensive training. Employees and employers should expect the same intuitive design in their business lives that they’ve come to expect in their personal lives.
Technology can also help with the training process. Advances in generative AI are expanding access to virtual assistants, which can guide employee actions and instantly surface critical information. Leaders might also seek out interactive, gamified training modules to keep employees more engaged throughout the process. Overall, employers should build their tech training around employees’ preferences and experiences to reduce friction.
2. Reduce the strain on managers.
Managers are under remarkable pressure. Perhaps the most vital muscle in a company’s operations, managers liaise between upper management, employees and customers to ensure day-to-day operations run smoothly while laying the groundwork for long-term success.
To alleviate the strain on managers, employers should listen openly to their needs and then provide them with the tools to address those needs. For example, if managers exhibit stress around coordinating employee schedules, employers can explore solutions that aim to streamline communications instead of having managers make individual phone calls and send text messages to adjust employee schedules. Where able, automating time-consuming functions can help lighten the administrative load and give managers time and energy for the more demanding parts of their jobs. Employers should empower managers with tools to automate day-to-day tasks—but enable managers to take back control at any time.
3. Offer diverse (and even unconventional) benefits.
The corporate world is overrun with perks, and hourly workers deserve the same modern benefits to improve their lives and make their jobs more enjoyable.
As I mentioned, earned wage access is becoming a more common benefit for hourly workers, but other increasingly popular options include part-time healthcare and mental health benefits, tuition reimbursement, professional development stipends and paid parental leave. While these benefits might be expensive at the outset, the return on investment is undeniable, as the improved quality of life they offer can translate to better recruitment, retention and productivity.
Leaders should also implement an employee rewards program tied to performance if they don’t have one. As our survey found, 52% of hourly employees would take a new job due to a desire for greater recognition and rewards.
However, an effective recognition program requires both meaningful rewards and careful strategy. Take a data-driven approach to performance management to ensure rewards are distributed fairly. The insights gained through a rewards program can also accelerate employees’ professional development and increase job satisfaction.
In the end, employee satisfaction is the ultimate goal. The “future of work” belongs to hourly workers, too. While their jobs are fundamentally different than the white-collar jobs we see splashed across most workplace headlines, it’s more than possible to transform their experience for the better.
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