Managing Minimum Wage Workers | How-to Guides for running your business from Business.com

In the manufacturing, service, retail and hospitality industries, minimum-wage workers often make up the bulk of a company’s employee base. However, hiring and retaining high-quality hourly workers poses some serious challenges to employers. Knowing where to look for candidates, how to schedule workers and how to keep employees motivated are key to building a strong workforce.

With the right approach to managing minimum-wage workers, you can:

Reduce employee turnover.
Improve customer service.
Minimize lost productivity due to high turnover.
Improve employee satisfaction.

Action Steps
The best contacts and resources to help you get it done

Hire the best

Making smart hiring decisions is crucial to building a high-quality workforce. Taking the time upfront to determine the skills a job requires and the personality or attitude you want from an employee will pay off in the end.

I recommend: SnagAJob.com, the nation's largest part-time and full-time hourly job site, is more than just a site where you can post jobs. It also assigns a customer relationship manager to work with you on your account to make sure you get the best employees. PeopleClick.com offers full-service recruitment management services for hourly and high-volume workers and Deploy.com streamlines all aspects of the hiring process with automated solutions.

Train employees

Employees who are thrown into the mix without any training are often quick to hand in their resignation. Give your new employees the tools they need to succeed with adequate training. Ensuring that new workers know how to do their job and understand what's expected of them can reduce employee turnover.

I recommend: HRD Press offers a variety of human resources training products and references on everything from sales to customer service.

Schedule smarter

If you've got a number of part-time hourly workers, scheduling shifts can be a hassle. Scheduling too many workers for a single shift can lead to boredom and scheduling too few can lead to highly stressful situations. Either way, the result can be a drop in employee morale and ultimately, increased turnover.

I recommend: Download templates for shift schedules, time sheets, absence trackers and vacation request planners from Microsoft.com. For more sophisticated solutions, check out employee scheduling software from Celayix.com or Visual Staff Scheduler Pro. Celayix.net online solutions cost less than $2 per employee per month and are most affordable if you have more than 25 employees.

Track hours and calculate paychecks

Keeping track of employee hours can be a chore if you do it manually. Likewise, processing paychecks requires you to calculate overtime and tax deductions. Errors on employee paychecks can be frustrating for workers and can sap motivation. Simplify the task and ensure accuracy with popular software programs.

I recommend: QuickBooks tracks employee hours automatically. With QuickBooks Payroll, a subscription-based service, you just enter employee hours, and it instantly calculates gross pay, deductions and paycheck amounts. It also lets you print checks in your office or offer Direct Deposit to employees.

Promote from within

If minimum-wage workers see no opportunity for advancement at your company, chances are they won't stay long. By promoting your best minimum-wage workers to positions of greater responsibility and authority, you motivate your entire staff.

I recommend: Use the Salary Wizard Calculator at Salary.com to help determine how to compensate workers who get a promotion.

Reward great employees

Motivate minimum-wage workers by rewarding performance. Provide an incentive for employees by setting goals. For instance, reward employees who reach a certain weekly or monthly sales figure, or offer a token of gratitude if a customer notes exemplary customer service.

I recommend: Rewards don't need to cost a bundle. A free lunch, an additional 15-minute break or a gift card for a nominal amount — available from GiftCertificates.com or QuickGifts.com — can do the trick.

Tips & Tactics
Helpful advice for making the most of this Guide

Offer English language instruction if you have many immigrants or a lot of workers for whom English is a second language.
Be sensitive about changing work schedules, as you may cause additional hardship on those struggling with work-life balance issues.
Bring in volunteers to help with computer and other skills.
Encourage low-wage workers to participate in automatic savings programs, even if they can only save $25 to $50 monthly. Make it easy for them by offering payroll deduction.

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