Payroll Strategies: How to Manage Hourly EmployeesBrian Zurawski
Hourly employees present unique challenges to payroll administrators who work with blended systems. We look at strategies payroll administrators can deploy.
Hourly employees make up a large portion of the American workforce. Over 73 million workers are paid an hourly wage.
Many companies work with both hourly and salary employees, which creates unique challenges for payroll administrators when dealing with hourly employees. From creating schedules to ensuring they receive quality benefits and perks, there are many things payroll administrators have to weigh when managing hourly employees.
This guide will go over various strategies you can deploy to manage your hourly employees. Just as much attention and focus that goes to your salaried employees should be given to your hourly ones as well. You’ll learn everything you need to know about how to retain your full-time employees.
Provide Greater Predictability
One of the biggest disadvantages to being an hourly employee is the lack of predictability. This can include them working a shift during the busiest hours of your business one day and then having a shift during the slow time the next day.
This is true, especially for those who work in the restaurant industry. They’ll have one shift where they make a large portion of tips and then not very much with their next shift. It can be difficult to offer your employees predictability, but making the effort to do so is important.
One thing you can do is ensure all of your employees are getting an equal amount of busy and quiet shifts during the week. Don’t try to load them up with all busy shifts one week and then all quiet ones the next.
Let Them Know Their Schedule in Advance
Employees love to know their schedules at least a week in advance, preferably two. Not having enough time in advance can create big problems for your hourly workers. It makes it difficult for them to plan their lives outside of work.
If an employee isn’t able to make plans around their jobs, that compromises their work-life balance. This can lead to anger and frustration for hourly workers.
Create work schedules for all of your hourly employees in advance. Notify them immediately each time you post a new schedule or edit an existing one. Try to consistently post the schedule on the same day so your employees know when to expect it.
By doing this, you’ll give your hourly employees the time they need to schedule the rest of their lives. They’re able to balance their personal obligations. This results in happier hourly employees that feel like their time outside of work is respected.
Use Payroll Technology
Time tracking technologies make it easy for you to run your business. Many of these solutions are very affordable and allow you to add on features that apply to your company.
You can use time tracking technology to post your schedules and allow employees to request time off. This makes it not only easy for your employees to ask for a day off, but it eliminates unnecessary paperwork for you to deal with on the backend. Many software programs offer mobile apps, so employees can request time easily from their smartphones.
Let Them Have a Say in Their Schedules
Giving your employees a voice with their schedules will help keep them engaged. It also shows them that you care about them enough to inquire after their work preferences.
This also helps you as a payroll administrator as well. When you ask them what hours and/or days they like to work, it gives you helpful information when planning your schedules.
You can create schedules that work well for your business and employees. This keeps your employees happy and helps you avoid any last-minute schedule changes. You’ll also decrease the number of call-outs or no-call/no-shows you get by scheduling employees during the times they want to work.
Another great feature you can add is allowing employees to trade shifts. This will show them that you trust them while giving them independence. As a result, it’ll decrease the amount of work you’ll have to do to find someone to cover a shift.
Focus on Communication
Keep your hourly employees in the loop at all times. Your part-time workers may feel disconnected from the workplace in comparison to your full-time ones. They might not be around when a company announcement is made or aren’t available to do team-building activities.
Ensure that you distribute all vital information to every employee so they know what’s going on in the organization. When scheduling company-wide activities, try your best to have them during a time when most employees are on site. If not, do separate activities that include your hourly workers or invite them to come in, even if they’re not scheduled to work.
Strive for Accuracy
An hourly worker has a lot of other responsibilities to juggle outside of their job. Accuracy is vital when relaying information to them. When creating schedules for your hourly workers, you don’t have a lot of room for error.
If you make an error and schedule an employee when they’re unavailable, they’ll typically have something else going on at that time. Expecting them to drop what they’re doing and come in can lead to anger and frustration. Working with a scheduling program can ensure you don’t make any mistakes that are usually caused by human error.
Payroll is another area you should be accurate in. Paying your employees less than what they earned can result in additional anger and potentially a high turnover rate.
Using automated tools can solve both of these problems. You’ll minimize the number of errors that are made. Your employees will also be able to view all of their information so they know what to expect.
Make an Effort With Your Hourly Employees
Giving your hourly employees stability while ensuring they feel valuable will help you manage them more effectively. Implement various time tracking technologies that not only make your business run smoother but ensure things are easier for your employees.
Contact TimeTrak Systems to discuss what options are best for your organization.