Hourly Workers Poised To Reshape The Workplace

How HR can empower organizations to adapt and thrive

What do respect, job security and training have in common? They are the three qualities that, in addition to higher pay, U.S. hourly wage earners want most from jobs right now.

This snapshot of worker sentiment comes from the input of the more than 29,000 wage earners, who participated in the 2023 Voice of the American Workforce (VOAW) Survey by Employbridge.
 

Why do these priorities matter so much right now to so many? I believe it reflects several megatrends that are converging in 2023 to reshape the U.S. workplace in historic ways – with workers leading the way.

Among the most compelling drivers of change are the workforce expectations forever changed by the pandemic, economic uncertainty and artificial intelligence. Each trend is playing out in complex ways, and in each, HR professionals have opportunities to advise and guide their organizations to adapt and thrive.

Post-Pandemic: The New Social Contract with Work

First, of course, is the pandemic. Its sudden onset and lingering aftereffects shook workers in nearly every field, and sparked deep examinations of the balance of life and work as we experience it. “What do I give up and what do I gain from this social contract – and how much is that exchange worth to me?” “How, when and where do I want to work?” The answers have changed in intriguing ways – perhaps more than employers, many of whom hoped for a return to the old paradigm, may realize.

One of the most important things HR leaders can do is help cultivate a culture of respect in an organization. When asked why they left past jobs, the top answer, cited by 25% of VOAW participants, was “I felt like I wasn’t appreciated, was treated unfairly.” The only answer cited more frequently was “I found a job that paid more” (28.7% of respondents). The VOAW survey detected more nuanced indicators of forms of disrespect in other answers, such as the more than 18% who cited “I felt overworked/burnt out” as their reason for leaving.

When asked, “Other than pay, what can employers do to earn your loyalty?”, the top response was “Treat me with respect” (cited by 39.4% of logistics workers and 38.3% of manufacturing workers). Note, too, that PTO – arguably a powerful way to help workers uphold a healthy work/life balance – was the second most popular response (cited by 32% of manufacturing workers and 29.6% of logistics workers). Other relevant top answers included “understanding my personal obligations” and “performance recognitions.”

Employers need to understand the impact of responses like these to reflect on how their own workforce defines respect. Establishing a culture of respect – regardless of whether the workforce is in-person, remote or hybrid – starts with active listening at the leadership level. Employers who have implemented thoughtful opportunities for positive relationship building and productive feedback loops sustain a broader culture of mutual respect.

Economic Turbulence: Redefining Job Security

The second major trend we see is how clearly hourly workers currently feel economic pressures today. No longer are the majority of workers holding down just one job, for example. Nearly half of workers in manufacturing (46.6%) and logistics (45.5%) report putting in more than 40 hours a week. Among gig workers, 90% indicated they planned to look for more work over the next six months due to a possible economic recession in 2023.

Multiple economic reports confirm these stressors, including a 2023 Federal Reserve report, which found inflation disproportionately affects lower-income workers and the Census Bureau’s Household Survey, which found the majority of Americans “very stressed” by inflation.

Between rising inflation and turbulent market predictions, it is not surprising that job security weighs so heavily upon job seekers. Job security surpasses shift and schedule flexibility in importance for the first time in two years. Human resources professionals can help employers build vibrant workforces by ensuring they make fact-based decisions – understanding the desire and need for higher pay both as a way to attract workers and to keep them.

HR can promote transparency in their organizations, letting workers know what they are doing to navigate economic uncertainty. If different skill sets will support an evolving workplace, HR leaders can identify and encourage avenues for workers to embrace training and upskilling opportunities, benefiting workers and employers alike. While employers continue to face wage competition that can lure away both job applicants and current associates, workers indicate that advancement opportunities are a big reason to stay with an employer. In fact, from this perspective, being able to shape one’s own growth in the workplace is a form of job security. This aligns with the third key trend.

“Machine Learning” and Human Advancement

A third factor is the rapid rise of artificial intelligence (AI), which is really just the latest advancement in the ongoing transformation of the workplace through machine learning, robotics and digital technology. In 2023, AI and machine learning in particular have accelerated exponentially. Google CEO Sundar Pichai told 60 Minutes the impact of AI will be “more profound than the discovery of fire or electricity.”

Wage earners are keenly aware of these trends and are eager to adapt to new models of work. While some jobs may be replaced by machines, many others will be created, and HR can play a role in helping retain and upskill valued workers by helping them to envision and attain the skills needed tomorrow.

At Employbridge, we were encouraged by the eagerness we found among hourly workers. When the VOAW asked workers across every age group if they would be interested in training in automation or robotics, the answer was a resounding “yes.”

Advancement opportunities are among the top three drivers of loyalty among hourly workers. Workers want to learn new skills to reach their goals. Among logistics workers (44%) and manufacturing workers (42%) in particular, many want to learn and said they would be willing to invest five or more hours weekly to learn a new skill. That’s a strong indication of how keenly hourly workers want to invest in their own learning and training. Among workers aged 18 to 24, 54% said they would invest their free time to upskill (compared to 46% of overall respondents).

HR leaders can make a big impact by showcasing opportunities for advancement, communicating news of training and upskilling opportunities throughout the employee journey. This means starting with the interview and new-hire onboarding, and continually showing employees there is room for them to learn and grow.

Looking Ahead

In 2023, hourly workers’ wants and needs reflect an emerging new social contract with work, that HR pros can help to shape. Multiple answers reflect workers’ desire for more control of their roles, schedules, and skills development. Respondents showed interest in new ways to engage with work that give them a sense of being respected and provide them pathways for advancement. HR leaders can be a game-changer to drive this change, helping employers with practical programs that help them compete amid this exciting and fast-changing time.

Author Bio

As Chief Experience Officer at Employbridge, Joanie Bily brings together resources from across the nation’s largest commercial staffing company to create a connected internal and external brand experience for employers solving workforce challenges today. Joanie also leads RemX, the professional staffing division at Employbridge, is vice chair of the American Staffing Association, and the author of the 2023 book, Dive In D.E.E.P.: Strategies to Advance Your Career, Find Balance, and Live Your Best Life.