Multi-Unit Franchisee Magazine Issue II, 2017 - Page 68

People BY PETER HARRISON Hiring Hourly Workers Meeting their needs will meet your own H ere at Snagajob we live and breathe the hourly worker experience. Through our on- going research and daily en- gagement with workers, we saw a real need for resources to help guide them through their employment journey. What we heard from workers is that most of the resources they could find were focused on salaried jobs or, if hourly, on the knowledge worker. In a partnership with LinkedIn, we ex- amined our respective data to determine patterns that might be helpful for both workers and employers. Our goal was to provide the first in a series of resources that reveal the best options and pathways available to hourly workers most likely to lead them to fulfilling, long-term em- ployment and faster career advancement. In addition, we aimed to offer employers fresh insight into what motivates and en- gages hourly wage workers, to help reduce turnover and better engage and advance them. Here are six of our key findings. 1) Most hourly workers are young, but older workers have more education. We found that 71% of hourly workers are under 30. This makes sense when you consider the most common reasons people choose hourly work, such as helping to pay for school or to start their careers. How- ever, when we looked at education levels, the findings were more surprising. While younger hourly workers naturally have less education than older hourly workers, we found that 45% of hourly workers over 30 have some post-secondary education, with 15% having a bachelor’s degree or higher. 2) When it comes to hiring speed, sandwich shops and sports stores lead the pack. For many hourly workers, get- ting a job quickly is the difference between being able to pay the bills or not. That’s why we analyzed hiring speed (the time between submitting the job application and the first day on the clock) across sev- eral industries. We found that, on average, restaurants hire within 27 days compared with 33 days in retail (some restaurants average as low as 15 days). Although re- tail takes six days longer on average, cer- tain retailers, such as sports and furniture stores, are more similar to restaurants in 66 MULTI-UNIT FRANCHISEE I SS UE II , 2 01 7 Employers and workers are best served when the employer tries to understand their hourly workers’ needs. terms of hiring speed. 3) Telecom, grocery stores and ca- sual dining keep employees longest. The length of time employees stay at a company can indicate how engaged they are at work. We analyzed how long em- ployees stay as a surrogate for their engage- ment level and found that telecom, casual dining, and grocery employers have the highest levels of hourly worker engage- ment. Sports retailers, beverage, and fast food employers have the lowest. It’s likely that wage differences have an impact here, but we didn’t consider that in our analysis. 4) While most hourly jobs are entry- level, restaurants have more growth opportunities than retail. Analyzing the level of experience of millions of hourly workers, we found that the vast majority of jobs in both the restaurant and retail industries are entry-level. Looking deeper, we found that the restaurant industry has a greater proportion of managerial roles. This makes sense considering that 90% of restaurants have fewer than 50 em- ployees. Lots of small shops means less middle management and thus a greater proportion of opportunities at the bot- tom and top. In contrast, there are fewer managerial, but more entry- and mid-level opportunities, in retail. 5) The average time it takes to get promoted varies widely by employer type. Hourly employers in beverage, crafts, and furniture get promoted to managerial positions the fastest, within two years on average. Workers in telecommunications and casual dining get promoted to manage- rial positions the slowest, more than three years on average. While some restaurants promote in as few as 15 months or as long as three-and-a-half years, the spread within each subcategory is much less. For example, we could expect all pizza shops to promote around the same time. This consistency likely is due to large chains dominating the restaurant industry and having standardized promotion tracks. 6) Many hourly workers invest in higher education. Since college gradu- ates earn twice as much as non-college graduates it’s not surprising that so many hourly workers go back to school. Of the hourly workers who pursue education after starting their hourly job, approximately three quarters get bachelor’s degrees or above and one quarter earn associate’s degrees. Looking into what these workers study, we found that while business is most popular, healthcare, IT, and engineering are growing fastest. 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