How to Hire Hourly Workers Better than Uber, Lyft and DoorDash

September 9, 2018
Uber has raised over $20 B to date as the San Francisco-based company has giant billboards all over the city and increased referral bonuses to attract hourly workers to join them. Doordash recently raised over $500 mm from Softbank Vision Fund and will be dedicating a significant amount of that to attracting hourly drivers. Lyft has attracted $5 B of funding and has positioned itself as the better version of Uber with better branding, marketing and vision, as the tech giant has been competing for drivers in the tight labor market.

With the amount of revenue raised by these technology giants, it has been increasingly challenging for companies to be able to compete against these companies to hire the right hourly workers for their companies, and to build up a strong team for their businesses. People who were formerly factory workers, cleaners, cab drivers, retail workers, and more, have now switched careers to work for Uber, DoorDash, Lyft, and more - attracted by the allure of referral bonuses, promise of a flexible work structure and better compensation.

However, there is actually still many ways to attract good talent, good hourly workers and to build a strong team that can support your business - be it in retail, restaurants, logistics, home services, hospitality, or in other businesses. Here is a few ways we can do it.
Good training can increase retention, improve the quality of the worker and work performance, and also be an attractive reason for workers to want to join you.
1. Provide a good team culture

Having a good working culture is very important for all workers, be it hourly workers or full-time workers. As described in this blog post by Indeed, "Culture is King", and it is very important to focus on providing good culture for workers. However, in companies like Uber, Lyft or DoorDash, it is very easy to feel isolated and not feel like you are part of a team. There is no strong company culture. As an Uber driver, you get very little interaction with a team, can feel lonely and do not feel that you belong in any team at all.

On the flip side, companies that want to hire good hourly workers, be it in retail, restaurants, logistic, hospitality, have the opportunity to provide a trusted, warm and loyal working culture for the worker. It is important to provide a teamwork-focused and friendly environment that can motivate workers and attract them.

2. Provide good training

Hourly workers do care about training. The importance of good training cannot be over-emphasized. Good training can increase retention, improve the quality of the worker and work performance, and also be an attractive reason for workers to want to join you. Many hourly workers may not have the chance to go to college or get a good education, but many of them are hardworking, diligent and want to do better in their own lives and career. They will value the opportunity to work for a company that provides training, that can help their own career progression and to give them a chance to learn new skills. The training sessions can range from service training, language training to managerial workshops that can help these workers to improve their work performance.
If a company is able to provide the correct healthcare coverage, it will be be a strong allure for hourly workers to join your company.
3. Provide the right insurance and healthcare

Many companies do not provide insurance and healthcare for their workers. Specifically, companies like Uber, Lyft and DoorDash do not employ their workers but view them more as contractors. Therefore, they do not get the right insurance nor healthcare coverage for themselves.

It is very important for hourly workers to have the right employee benefits. Without the right healthcare and insurance, it can be very challenging for them to take care of themselves if they fall sick or if their family members fall sick. On-demand companies do not provide the correct help and care that is needed for them to take care of themselves. Therefore, if a company is able to provide the correct healthcare coverage, it will be be a strong allure for hourly workers to join your company.

4. Set the correct goals and reward structure

Setting the correct goals and reward structure is very important for hourly workers as it helps to motivate them to work harder and to retain them. For example, one way is to set up the "Employee of the month" award, and provide monthly rewards including cash bonuses or even physical prizes like books, vouchers or physically displaying the photo of the star employee on the wall each month. Hourly workers take a lot of pride in their work, and by doing so, it will definitely motivate them to work harder.

Despite raising large amounts of funding, companies like Uber, Lyft and DoorDash are still having a tough time trying to recruit the best talent. It is important for other retail, restaurants, logistics or hospitality companies to know that there are many different channels, avenues and strategies that one can deploy in order to stand out in the fight for better talent, and to better hire hourly workers.
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