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Challenges to Hiring Hourly Employees in 2023

The future of hiring hourly employees is uncertain, with the rise of automation and an ever-changing workforce. In 2023, organizations will face several challenges when recruiting and retaining hourly workers due to various key trends that have been unfolding in the labor market.

Here are the main challenges that you can expect to face when hiring hourly employees in 2023:

1. Rising labor costs

The most significant challenge facing organizations when hiring hourly employees is the rising cost of labor. In 2023, labor cost increases are expected to continue and are likely to outpace inflation. This will impact organizations’ ability to attract and retain quality employees, as they may not be able to offer competitive wages or benefits packages.

What’s more rising costs of utilities, with energy being the most affected, could potentially drive up costs associated with running businesses, and in turn, the wages required to pay hourly employees.

2. Increase in turnover rates

The average annual turnover rate of hourly employees across various industries is about 57%. This rate represents both voluntary and involuntary turnover.

In 2023, this figure could increase even further as more workers seek out better pay, newer opportunities, and/or more hours. This could result in organizations having to spend considerable amounts of money and resources on rehiring and training new employees.

Luckily for you, hourly hiring solutions from HourWork make it possible to hire hourly employees that will actually want to stay with your business. With such a solution, you don’t have to worry about unbearable turnover rates or high hiring costs.

3. Tension of returning to workplaces

After the Covid-19 pandemic, businesses were returning to full operation as 2022 came to a close. However, employers may have a difficult time convincing employees to return to the workplace in 2023.

Most hourly employees are now accustomed to working from home, which can be a comfortable and convenient option for them. This could increase the challenges of recruitment for employers looking to hire hourly employees in 2023, since employees may push for flexibility and remote opportunities.

4. Growing competition

As the labor market continues to improve, businesses are likely to face more competition in hiring hourly employees. With more companies vying for a limited pool of qualified employees, it will be increasingly important to have a competitive and attractive compensation package.

Organizations need to ensure that their hourly wage model is competitive and offers an attractive range of benefits in order to be successful in hiring hourly employees in 2023.

5. Skills gap

The skills gap is also a major challenge for organizations when hiring hourly employees in 2023. Many employers are searching for qualified workers with certain skills in order to remain competitive, but struggle to find roles that align with the skills of their employees.

This could make it difficult for employers to find the right candidates and make the process of hiring expensive and time-consuming.

Organizations will need to look for innovative ways to bridge the skills gap in order to effectively recruit and retain employees.

6. Zerioing in on Gen Z candidates

Organizations should also keep in mind the growing population of Gen Zers when hiring hourly employees. As this generation becomes increasingly comfortable with digital platforms, employers should be well-versed in social media and digital recruitment strategies.

Gen Zers are looking for work opportunities that offer flexible hours, competitive wages, and a good work-life balance. Employers need to be able to offer these benefits in order to attract young and qualified candidates.

To sum it all up,

There are six of the main challenges that organizations will face when hiring hourly employees in 2023. While these challenges may seem daunting, with the right strategies and solutions in place, employers can still find success in hiring hourly employees.

At HourWork, we provide the tools and resources needed to make the process of hiring hourly employees faster, easier, and more cost-effective. With our comprehensive platform, you can find qualified and motivated employees to join your team in 2023.

Contact us today to learn more about how we can help you make hiring hourly employees a breeze.

Cary Grant
Cary Grant
Cary Grant, the enigmatic wordsmith hailing from the UK, is a literary maestro known for unraveling the intricacies of life's myriad questions. With a flair for delving into countless niches, Grant captivates readers with his insightful perspectives on issues that resonate with millions. His prose, a symphony of wit and wisdom, transcends boundaries, offering a unique lens into the diverse tapestry of human curiosity. Whether exploring the complexities of culture, unraveling philosophical conundrums, or addressing the everyday mysteries that perplex us all, Cary Grant's literary prowess transforms the ordinary into extraordinary, making him a beacon of intellectual exploration.


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