How to help alleviate financial struggles for hourly workers

Despite some improvement year-over-year, financial wellness remains a critical concern for hourly workers — one that will likely shape strategic conversations benefit advisers have with their employer clients in the years ahead. 

Our State of Hourly Work Report uncovered striking differences regarding access to benefits and financial stability among U.S. hourly workers. The comprehensive survey of more than 1,000 hourly workers showcases the growing challenges workers face around financial wellness, professional development and scheduling. It also provides an opportunity to bolster and enhance benefits strategies to better meet the needs of this workforce segment. 

As many as 62% of workers report that they struggle financially, with 21% unable to cover basic expenses and 41% living from one paycheck to the next. With this in mind, it's no wonder there's been a dramatic rise in "poly-employment" as 27% of workers currently hold multiple jobs to make ends meet. This trend presents unique challenges for the standard design of benefits packages, and HR teams should see it as a chance to design new, agile packages that directly address the most pressing needs of their employees.

Read more:  Employers are underpaying hourly workers, and it's costing their business 

Additionally, these findings demonstrate a significant need for employers to introduce benefits that promote financial wellness. Unsurprisingly, the survey found that workers with greater financial stability report higher job satisfaction, with 46% able to cover expenses with money left over for savings. Strategic financial benefits are likely to improve retention rates, employee satisfaction and overall productivity. 

The survey found that women are more than twice as likely as men to report never receiving workplace training (10% vs. 4%). This gap is especially concerning given 91% of employees believe they need additional skills for career advancement. 

While most shift workers receive training during the onboarding phase of a new job, they can often benefit from additional training beyond the initial induction phase. Employers need to provide ample opportunities for continued professional development through training programs, mentorship and knowledge sharing. These can include regular check-ins to facilitate transparent communication, more regular feedback cycles and a formal process to recognize achievements. It also presents an opportunity for employers to implement learning stipends or training reimbursement programs since the most sought-after training areas included technical skills (21%), industry-specific skills (19%) and general business skills (17%). 

Read more:  Why unions are becoming increasingly popular among hourly workers

Role-specific training will do more than build skills – it also can signal a culture of growth and empower workers to succeed. When shift workers see clear paths to advancement through learning opportunities, increased engagement and motivation will naturally follow. Fostering an environment that champions skill development and new challenges turns everyday roles into launching pads for career growth. 

Income predictability plays a major role in worker satisfaction, with nearly all (97%) of workers supporting fair workweek legislation that requires employers to provide estimates and advance notice of schedules, predictability pay for late changes and a guarantee that work will be offered to existing employees before hiring new workers. The correlation between income predictability and job satisfaction is striking: 72% of workers who love their jobs report having a very predictable income.

An action that HR teams could take is to introduce scheduling tech and support services as part of a comprehensive benefits solution. Implementing scheduling software provides employers with a way to manage the scheduling process and maintain compliance. With many regions already implementing fair workweek regulations, employment brokers can position themselves as strategic advisers on both compliance and technology solutions.

Additionally, implementing technology solutions can address workers' increasing feelings of loneliness and isolation in the workplace. A 2024 report by Gallup found that one in five employees currently feel lonely in their workplace. Implementing technology such as communications channels and digital bulletins can enable real-time conversations between hourly workers, facilitating both work-related discussions and casual team interactions. By leveraging workforce management solutions that allow for training, employee intercommunications and engagement, organizations can improve the mental wellness of the frontline workforce.

Read more:  Is Trump's executive order on IVF too good to be true?

The report also unveiled significant generational differences in attitudes toward workplace technology. While 80% of workers believe their employers should invest more in digital tools, the response to AI varies dramatically by age group. Millennials show the highest enthusiasm for AI (50%), while Gen Z workers express the most concern (33%). To address these generational differences, organizations can offer targeted training and support programs to implement AI effectively across business operations. 

With the rapid implementation of AI systems across industries, employers should consider AI technology to automate time-consuming tasks and eliminate common pain points. The value that AI automation brings into the workplace is invaluable and impacts individuals across an organization, from the barista taking coffee orders to the HR specialist screening prospective employee applications. 

For employers and their advisors, our survey findings provide insight into what benefits hourly workers desire most. Strategic opportunities include expanding service offerings to include financial wellness programs and tools, building out technical, industry-specific and general business skills, and implementing procedures and technology that increase pay predictability. Others include conducting an audit of common pain points to identify the best use cases for AI and facilitating opportunities for employees to communicate with one another to build work relationships.

Traditional benefits alone may no longer be sufficient to attract and retain hourly workers. That's why a more holistic approach that considers financial wellness, professional development, schedule stability and digital transformation is key to improving worker satisfaction and retention in today's competitive and dynamic labor market.