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Incentive Programs to Retain Hourly Employees

Employee retention is crucial to the success of any company. Nowadays, it’s not enough for employers to offer a competitive compensation package. Annually, there is a 49% turnover for hourly employees

To keep employees happy and motivated, companies need to have various ways for them to take part in business. You can do this by offering incentives programs that allow your hourly employees to earn rewards if they continue working with you. 

While hourly employee benefits vary by industry and location, employers should consider implementing the following employee incentive programs to retain employees:

Ways to Retain Hourly Employees

Fair Compensation

Salary is one of the most important employee benefits. In addition to receiving competitive compensation, hourly employees should also be compensated fairly for their work and skills. One employee incentive program that can help attract and retain employees is offering employee bonuses based on progression or performance. This allows hourly employees to earn more money as they continue working with you to reduce employee turnover.

Employee of the Month

One of the most common incentive programs in choosing an employee of the month.

While this may seem old school, there’s a reason it’s stuck around. People enjoy recognition for what they do – especially when it comes with a monetary prize. However, instead of choosing someone yourself, ask customers and other employees to give feedback to who they think should win that month.

When choosing an employee of the month, it is important to determine which factors you will take into account. That will make it fair for all employees and give them standards to strive for.


  • Attendance
  • Customer Reviews
  • Meeting/Exceeding Expectations
  • Positive Attitude
  • Leading Others

Paid Time Off/Sick Days/Vacation

Many companies do not offer paid sick days and vacation time to hourly employees. Fortunately, determining how many paid days your company should offer will depend on what makes sense for your business model. For example, if you have hundreds or thousands of workers, then one way you can attract them to stay with your company is to offer paid sick days.

Career Development

Creating a career development plan will keep employees motivated and help them to advance their careers. The employee’s performance review should indicate where they would like to see their career move in the future. Establishing a clear vision of one’s professional goals is essential when it comes to employee retention.

Employee Recognition/Awards

Employee recognition and awards are incentive programs that an employer can use to keep employees engaged as they continue to work hard and achieve their goals. This incentive program also helps you retain your best employee by providing a way for them to earn more money for success.

Educational Assistance/Tuition Reimbursement

Education is one of the most important employee benefits. Employers should consider offering tuition reimbursement that reimburses part or all of an employee’s educational expenses if they meet specific requirements, such as keeping a good GPA or rating on performance reviews. This incentive program encourages employees to keep studying and learning to become more valuable members of their team.

Group Competitions

Creating group competitions is a great way to get employees engaged. It gets them engaged with their work, customers, and each other. By getting people to work together to accomplish the store goals, they are not only more productive, but engaged employees stay longer.


  • Meeting monthly store income goal
  • Customer satisfaction score
  • Speed of completing customer orders


  • One day of PTO
  • Free meal
  • Staff party

Attendance Incentives

A major problem with hourly workers can be their attendance. When you link perfect attendance streaks to incentives, you give employees an extra reason to show up. Knowing that there are incentives to working and staying with the company leads to better retention.

Also note, 51% of workers would change jobs for one that’s more flexible. Keep this in mind when scheduling shifts for those who need a flexible schedule – or for those who need a set schedule week after week.


  • Perfect attendance for one month: $50 Amazon gift card
  • Perfect attendance for three months: Three days of PTO

Employee incentive programs help attract and retain employees by showing them that you appreciate their hard work and dedication. Through employee incentive programs, employees will not only feel more valued, but they’ll be encouraged to keep working hard for your company.

Sprockets’ Applicant Matching System helps you to hire dependable people that fit your culture from the start, reducing employee turnover. Learn more about how our pre-hire assessment can assist in your hiring process.


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