The labor shortage is raging on, with the number of people working or looking for jobs falling by 353,000 just a couple of months ago, and companies can’t afford to lose any more hourly workers—especially through the summer and holiday seasons.

We’ve already seen lifeguard shortages, causing officials to share safety warnings for people heading to the pool or beach this summer. The mayor of New York City even raised starting wages for lifeguards to $19.46 per hour to get more candidates in the door for these roles.

However, it isn’t just long hours and low wages causing this situation. There’s a bigger problem at play. Hourly workers—especially younger workers—are deeply unsatisfied with their jobs, even with additional perks and benefits thrown their way. Data from Legion Technologies’ 2022 State of the Hourly Workforce Report found that hourly workers have an Employee Net Promoter Score (eNPS) of -7. This score helps companies determine how employees feel about their employers and jobs. A score between 0 and 30 is considered acceptable, while a negative eNPS indicates they are unhappy and disengaged.

To put the low eNPS into perspective: 75% of hourly workers planning to look for a job within the next 12 months are younger employees (aged 18-24). This is important to note considering those aged 18-24 make up one of the fastest-growing segments of today’s 73.3 million hourly employees across the country. If organizations hope to solve their talent shortage problems, keeping these employees happy and engaged is essential.

To correct this situation, leaders need to change their actions, implement new processes, and create a better experience.

OFFER GREATER SCHEDULE FLEXIBILITY

According to our survey, schedule flexibility and control were among the top issues enticing employees to take a new job. Since many people have to juggle school, childcare, and other daily priorities, 85% of hourly workers value schedule flexibility. In fact, employees aged 18-24 years (aka Gen Z) are five times more likely to have a primary job and a side gig than their older coworkers, so it’s no wonder they’re more interested in employers willing to provide schedule flexibility.

Organizations can tap into the power of artificial intelligence (AI) to empower employees with greater schedule flexibility. The latest AI-powered workforce management platforms enable employers to automatically match business needs with employee preferences, so employees feel they have more control over their schedules. In addition, they can make it easy for employees to swap shifts or claim open shifts—even at other locations— to help fill key gaps in the schedule. This gives employees greater earnings potential while allowing the employer to remain compliant with local labor laws.

INCREASE RECOGNITION FOR THEIR WORK

Following schedule flexibility, greater recognition and rewards are the incentives most likely to persuade more than 58% of hourly employees to take a new job. Employees want to feel valued, appreciate continuous feedback, and enjoy having their accomplishments celebrated throughout the year.

Companies should enable their managers to easily assess the performance of hourly workers in a more quantifiable way. By introducing employee recognition programs that reward people for achievements and behaviors, as well as anniversaries and milestones, companies will be able to better engage and retain their hourly workforce.

PROVIDE INSTANT ACCESS TO PAY AND PREMIUMS FOR KEY SHIFTS

According to Legion’s survey, nearly 75% of hourly employees stated they would be most motivated to pick up extra shifts if they were paid a premium for the said shift. In addition, more than 80% of 18-24 year-olds believe having the option to get paid early is very important. This means that four out of every five Gen Z employees prefer an employer who offers instant access to earned wages rather than waiting two weeks for a paycheck.

Employers can accommodate these needs by offering premiums for high-demand days, such as weekends or holidays, that employees don’t typically want to work. As an additional incentive for a job well done, employees with a good track record of showing up to shifts on time can have the benefit of instant access to their wages, offering them the immediate value of their money without having to wait for their next pay period. Offering these benefits helps employers fill schedules more easily, reduce callouts, and improve clock in and out behaviors.

The labor shortage has created a shift in the workforce. Employees now have greater power to negotiate for job benefits that support their work/life balance, meaning employers need to offer greater benefits beyond a living wage, including greater schedule empowerment and better recognition for quality work.

By addressing what their workers want and need for job satisfaction, companies will gain an advantage in attracting and retaining valuable employees. Failing to recognize or respond to this trend will damage the company’s reputation among current and prospective employees—particularly younger hourly workers—and create higher risks for labor gaps.