Top 5 Reasons Why Hourly Workers Leave Jobs 

Losing your hourly workers to high turnover costs your business money, bottom line. The expenses associated with recruiting staff and onboarding new employees to replace those who leave can cost between one-half to two times the employee’s salary, according to Gallup.  

Mitigating the costs of high turnover starts with understanding why hourly employees leave in the first place. The hiring landscape is shifting, as are the priorities for hourly workers. As a leading American payroll & HR company, we share the five most common reasons hourly employees leave their roles. And more importantly, we’ll share how Netchex can have your back with solutions to address attrition factors.  

1. Paychecks That Are Late or Wrong 

As you can imagine, getting paid is a top priority for all employees. Yet, too often, hourly workers run into obstacles when it comes to getting paid accurately and accessing their money. Why is that? 

According to HRMorning, 18% of businesses are frustrated by their payroll’s complexity. The headaches involved in payroll lead to one in five employees receiving an incorrect paycheck. The mistakes that payroll departments make include underpaying, misclassifying, or taxing employees incorrectly. Hourly employees, whose hours often fluctuate, are most prone to payroll blunders. 

Hourly employees are also vulnerable to another barrier when it comes to accessing their pay: being unbanked. CNBC reports that 6% of Americans don’t have access to a bank account. From not living near a bank to being ineligible for an account, there are a variety of reasons hourly workers may not have a bank account. But they all add up to one thing, and that is a greater reliance on pricey check cashing services and payday loans.  

How Netchex Can Help 

Netchex helps businesses overcome the challenges of payroll by offering simple payroll solutions that are customized to fit your company’s needs and workflows. Our integrated Time & Attendance Tracking with Scheduler ensures that you can make the most of your time. 

But Netchex’s role in simplified payroll doesn’t end there. With Netchex Paycards and direct deposit solutions, all your hourly workers can get paid how they want, without the typical payroll issues. 

2. The Shaky Ground of Financial Instability for Hourly Workers 

Though it may seem counterintuitive, many hourly workers leave their jobs because of financial instability. The unfortunate reality for many of these hourly workers is that fees associated with financial insecurity, from overdraft fees to late payment fees, make it difficult for them to get ahead.  

Netchex Has Your Back (And Theirs) 

Netchex helps businesses give employees the tools to take control of their finances. For example, our Earned Wage Access (EWA) program gives hourly employees access to their wages before payday. And best of all, you can offer this valuable service to your employees at no cost and no risk to you.  

EWA helps your employees by relieving their financial stress and helps you by improving productivity and retention. Give them a feature they’ll love that’ll keep them motivated to stay longer.  

3. Scheduling Conflicts and Complexities 

For hourly workers, a predictable, flexible schedule isn’t a perk anymore. It’s a necessity. And if your business can’t provide it, many will start looking for one that can. 

Your hourly team members are often balancing more than just their jobs. They’re managing childcare drop-offs, coordinating transportation, or juggling classes, often with little outside help. Without work schedule flexibility, even a minor schedule conflict can create a major life disruption. 

Rigid or outdated scheduling practices can make your employees feel like their families, time, and preferences aren’t valued. 

Netchex Simplifies Scheduling 

That’s why Netchex puts flexibility and accessibility front and center with our top-rated Employee Scheduling Software and Punch Request solutions. 

With Netchex, you and your team can: 

• Easily create and publish schedules with custom features, smart conflict alerts, and an intuitive design. 

• Get notified of who’s scheduled to work and who’s punched in to keep your business running smoothly, identifying who else to bring in for the shift. 

• Empower employees to manage their time, view schedules, swap shifts, track PTO, and request changes or missed punches, all from our mobile app. 

• Simplify everything by syncing scheduling with Netchex Payroll for a smoother workflow. 

Support your team beyond the workplace because when life works, work works better. 

4. HR Support That’s Missing in Action 

An hourly employee’s job influences every aspect of their life. They often need to turn to the HR department to get the information they need, and to be given the wrong advice by HR can be devastating. Imagine being told a new baby is automatically covered by insurance, only to find out at a critical time that adding a new dependent requires filing a form within a set period.  

Your business’s HR department holds the answers to common questions, like those related to paid time off, benefits eligibility, and advancement opportunities. You can steer your hourly teams in the right direction while cutting costs and increasing efficiency.  

Netchex Shows Up for You 

Netchex’s AskHR is a centralized platform where employees can get the HR help they need. AskHR incorporates AI as a first layer of assistance so that simple questions are answered quickly and accurately. When inquiries require a human touch, AskHR will route the hourly employee to the HR team member best equipped to help, ensuring both the worker and the company save time.  

5. The Company Isn’t Engaged — and Neither Are the Employees 

Employee engagement is a key factor and must-prioritize effort in retention. Engagement refers to your team’s commitment, enthusiasm, and dedication, both to their job responsibilities and the company. In fact, Gallup reports that businesses with low employee engagement experienced an 18% higher rate of turnover. Retention isn’t the only metric that improves with increased employee engagement. Gallup goes on to report that companies with high employee engagement experience: 

• 81% less absenteeism 

• 64% fewer workplace accidents 

• 28% less theft 

• 23% increase in profitability 

Netchex Data Insights 

Netchex can help you measure and improve your company’s employee engagement through data, analysis, and reporting. Netchex can track and analyze every aspect of your HR process. Have the data visibility you need to boost hourly employee engagement and uncover common HR issues that might be sabotaging engagement levels. Explore Netchex engagement solutions, too, to maximize and simplify your current efforts.  

When your company is engaged, your hourly workers will be more engaged, resulting in: 

• Increased productivity and sales 

• Minimized turnover 

• Boosted customer experiences 

• Elevated organizational participation 

FURTHER READING: People Over Policy: HR’s Vital Role in Employee Engagement 

Netchex Helps Companies Improve Hourly Employee Retention 

Employee retention is a complex aspect of your business with a variety of influencing factors. Your HR department is your first line of defense against high employee turnover. Reliable and accurate payroll, financial empowerment tools, and flexible scheduling are all signs of an effective and supportive HR department. And you’ll see the difference in employee engagement when you track and analyze telltale data.  

Netchex’s HR tools can help you do all of this and more. Take the first step in reining in high employee turnover among your hourly workers. Contact us today.