In the hustle of daily life, it’s easy to overlook those who truly power our economy—the hourly workers. These are the individuals behind our morning coffees, our customer service calls, and the cleanliness of our public spaces. Despite their crucial roles, they remain largely invisible and misunderstood in the broader narrative of the workforce.
Myth 1: Most Workers Are Salaried Employees
Contrary to popular belief, the majority of the American workforce is paid by the hour. According to the Bureau of Labor Statistics, there are 78.7 million hourly workers in the United States, representing 55.6 percent of the country’s workforce. This surpasses the population of countries like England, France, or Italy, highlighting the critical mass of hourly labor in the US.
Myth 2: Hourly Workers Are Predominantly Young People
The stereotype of hourly workers mainly being teenagers saving for college is inaccurate. Again, data from the BLS helps us get to the truth. It reports that only about 20% of hourly workers are under the age of 26. The reality is that this workforce is dominated by Millennials and Gen Xers, with Baby Boomers representing a rapidly growing segment. As inflation rises and the labor market shrinks for talent, older Americans have come out of retirement and returned to the workforce. This diversity reflects a broad spectrum of ages and experiences, debunking the myth of a young hourly workforce in their teens or early 20s.
Myth 3: High Turnover Indicates a Lack of Commitment
Industries that largely rely on hourly workers tend to struggle with high employee turnover, especially the c-store and fast-food spaces, which typically see figures reaching 130% to 150% annually. It can certainly be frustrating for employers and is often misinterpreted as a lack of commitment from workers, but the truth is more complex. Many hourly workers face unstable job conditions and frequent changes in employment due to external factors rather than personal choice. Unlike salaried workers, hourly workers have been conditioned to have more jobs, so they are not romanticized by the hiring process or selective in their choices. They’ve experienced so much rejection, frustration, and toxicity in various work environments that they’ve simply accepted the expectation that they will only work somewhere for a short time before having to go through the process all over again.
Myth 4: Hourly Positions Are Dead-End Jobs
The notion that hourly jobs offer no real career advancement is critically outdated. Many companies are now recognizing the value of developing career paths for hourly employees, which includes offering competitive benefits and opportunities for growth. External hires can lead to an increase in employee turnover since they are 61% more likely to be fired from their job than employees promoted from within. Internal hires will already have developed company-specific skills needed to succeed and stay long-term. Research also suggests that external hires underperform in their first two years compared to internal hires and cost 20% more than internal hires. Promoting from within not only saves on hiring costs but also leverages existing employee skills, enhancing job satisfaction and loyalty.
Fun fact: 95% of Domino’s franchisees today started out as part-time pizza makers or delivery drivers.
Myth 5: Investing in Hourly Workers Is Not Worthwhile
Ignoring the potential of hourly workers is a costly oversight. High employee turnover can cost businesses anywhere from $1,500 to $10,000 per employee, which accumulates to a staggering amount across the industry. It actually adds up to an estimated $1 trillion annual cost in voluntary turnover for businesses in the US. Investing in these workers by improving hiring practices and workplace conditions is not just ethical; it’s economically sensible.
Myth 6: The Same Hiring Process Works for Both Salaried and Hourly Workers
Relying on the same hiring strategies for salaried and hourly positions is ineffective. Hourly job markets demand quicker and more flexible hiring processes to cope with high application volumes and rapid turnover. Adapting hiring practices to meet these demands, such as by streamlining applications and improving communication with candidates, can significantly enhance both efficiency and outcomes.
Myth 7: There Are No Viable Solutions to Today’s Hiring Crisis
Finally, the belief that no solutions exist to the challenges facing the hourly workforce is false. While it’s true that many “solutions” were rushed onto the market in the wake of the COVID-19 pandemic and either didn’t work or worsened the situation, effective solutions do exist. Innovations in HR technology and strategic shifts in management practices are already showing promising results in addressing these challenges. From AI-powered tools that automate manual tasks to improved candidate engagement strategies, there are numerous ways to enhance the hiring process to better support workers as well as managers.
It’s Time to Shift Our Perspective
Hourly workers are the unsung heroes of our economy. It’s time to shift our perspective and recognize the invaluable contributions they make to our daily lives. By debunking these myths and implementing thoughtful, informed changes to how we view and treat hourly workers, businesses can improve their operational efficiency and contribute to a more equitable and thriving economic future. Let’s not underestimate the power of reevaluating our assumptions and investing in the vast potential of the hourly workforce. With continued effort and innovation, we can ensure that these essential workers are no longer invisible but are seen and appreciated as the crucial part of our economy that they truly are.
Harness Expert Insights on Hourly Hiring
