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How to Retain Great Talent in High-Turnover Industries

Mar 10, 2025 | Supplemental Benefits

In industries where hourly work and high turnover are the norm—such as temporary staffing, retail, hospitality, and healthcare—keeping great employees can feel like an uphill battle. Businesses that fail to retain talent face costly recruitment cycles, decreased productivity, and lower morale. The good news? Strategic benefits and employee perks can significantly improve retention and loyalty.

Here’s how businesses can create an attractive work environment that encourages employees to stay.

1. Offer Meaningful Benefits That Employees Actually Want

When employees feel valued and supported, they are far more likely to stay. But many companies still focus on traditional benefits that may not meet the needs of hourly workers. Instead, consider offering:

Flexible Healthcare Benefits: Many hourly workers don’t qualify for employer-sponsored health insurance. Providing affordable telehealth options or supplemental insurance through a Section 125 plan allows employees to access essential care without financial strain.

Mental Health Support: Stress and burnout are common in high-turnover industries. A strong Employee Assistance Program (EAP) that includes counseling and wellness resources can be a game-changer for retention.

Childcare and Family Support: Flexible spending accounts (FSAs) for dependent care and backup childcare options can be invaluable to working parents.

Tuition Reimbursement or Learning Stipends: Invest in employee growth—whether through tuition assistance or skill-building programs—and commitment to employees’ future. Many programs are flexible and can include job-related courses as well as undergraduate, graduate, and certificate programs.

2. Provide Perks That Improve Work-Life Balance

Hourly employees often juggle multiple responsibilities outside of work. The best perks help them maintain stability and balance, making them more likely to stay loyal to your company. Here are a few ideas:

  • Flexible Scheduling: Allow employees to swap shifts easily or have input in their schedules can reduce burnout.
  • Meal Discounts or Stipends: Many hourly workers appreciate assistance with food costs, whether through free meals on shift, grocery stipends, or discounts on healthy food options.
  • Employee Recognition Programs: Incentive performance with rewards such as bonuses, gift cards, or extra time off to boost engagement.
  • Commuter Benefits: Subsidize public transportation or offer gas stipends to further ease financial concerns.

3. Educate Employees on Their Benefits—Often and Clearly

Employers in many cases already offer benefits, but still see low retention. Even more puzzling, employees may not even be using these benefits. Often these are two sides of the same coin. One of the biggest reasons employees don’t take advantage of benefits is simply lack of awareness. Many companies offer great perks, but if employees don’t understand them, they go unused. Here’s how to ensure your workforce knows what’s available:

Mobile-Friendly Access: Make benefits information easy to find through a mobile app or employee portal.

Consistent Communication: Instead of a one-time onboarding session, keep employees informed year-round through text alerts, posters in break rooms, and quick training videos.

Peer Ambassadors: Designate team members as benefits ambassadors who can accurately answer questions and encourage enrollment.

One-on-One Support: Offering quick Q&A sessions with HR or an online chat option makes it easy for employees to get help when they need it. In some cases, your benefits provider can also facilitate an information session for your employees.

Conclusion

Retaining great employees in high-turnover industries isn’t just about wages—it’s about offering meaningful benefits and making sure employees understand and use them. By providing affordable healthcare options, financial support, flexibility, and clear communication, businesses can create a work environment where employees feel valued and committed.

If you’re looking to enhance your benefits package with telehealth, section 125 plans, or an EAP, LEVR Health can help. Contact us today to learn how our solutions can reduce turnover and improve employee satisfaction.

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