Unlocking Frontline Potential: Leveraging Tech to Engage and Empower Deskless Workers
As the world becomes increasingly digitized, the need for technology that can improve the efficiency and livelihood of front-line workers has never been greater. From healthcare and retail to transportation and logistics, front line workers play a vital role in keeping the economy running smoothly but it has commonly been accepted that eye-watering rates of turnover are inevitable.
Investment in technology that supports these workers can take many forms, from software solutions that streamline communication and coordination, to hardware tools that enhance productivity, safety, and well-being. If employers invest in creating opportunities for employees at work, workers will be more loyal, more engaged and have a stickier relationship.
Investing in people is crucial to minimizing turnover and ensuring continuity in the workplace. Numerous studies from Harvard, McKinsey, and other sources, have pinned the direct & indirect costs of front-line turnover to more than $100M. Whether the company focused on the reduced costs, higher quality of service, or reputational boost, it’s become evident that the cost of employee turnover is too high to bear.
Costs
Decreased Productivity Gains
High employee turnover can negatively impact a company's productivity as it results in a smaller team that must work harder to compensate for the lost workforce. This added workload can cause stress levels to rise among remaining employees, which can negatively affect their performance and overall productivity. A recent HubSpot report found that productivity costs US businesses an unbelievable $1.8 trillion dollars every year.
The Problem with Front-Line Training
According to Gallup, only 12% of new hires state that their company does a good job of onboarding and a study by Krauss, A. D. (2010) showed that 50% of hourly workers quit within 120 first days. Employers are commonly using a haphazard approach to training which can have detrimental consequences. Workers feel overwhelmed and unsupported leading to poor performance and high turnover rates. Particularly with front-line workers, where they are continuously busy and unable to be paid for any training off the clock, employers struggle to develop an engaging and ongoing training program.
Offering Personal & Career Growth Opportunities
In a recent McKinsey study, job growth was commonly cited as the most important attribute for what frontline employees crave. 65% of respondents were unaware of how to achieve advancement and it was even higher amongst women, younger workers, and those without a degree. By providing opportunities for career growth, companies can attract and retain talented individuals who are committed to providing excellent service. Additionally, investing in the development of front-line workers can lead to improved job performance and increased productivity, which can ultimately benefit the company as a whole.
Holistic Benefits, Mentoring & Support Systems
Benefits offered by employers have become a crucial factor in attracting and retaining top talent. A survey by workhuman found that 63% of employees would consider leaving their current job for one with better benefits, even if the pay was equal or lower. With the significant development of consumer & employment APIs, there is potential for new and exciting products that will revolutionize the way employees receive benefits.
Culture & Recognition of Achievement
Recognizing and valuing employees has always been a crucial aspect of effective management. However, in the current highly competitive job market, the methods by which organizations demonstrate their appreciation for their employees have become increasingly vital. A recent study by OC Tanner showed that 37% of workers claimed that recognition was the most important driver of great work. Employee appreciation is linked to higher job satisfaction and significantly more stability.
Security, Safety, and Empowerment
Giving employees a sense of purpose and trust in their work is vital as it helps them understand that their role goes beyond just numbers and targets. By highlighting how their job directly impacts and improves the lives of others, employees can feel a sense of fulfillment and motivation in their work. The knowledge that they are providing services that are beneficial to others is a powerful driving force for many employees.
Needs
Personal Growth & Learning: A large majority of front-line workers are eager to acquire new skills that will help them stay competitive in the job market, as demonstrated by an Axonify survey which found that more than 81% of front line employees under the age of 54 are interested in reskilling or upskilling training. However, only 41% of respondents stated that their employers currently offer development opportunities for them.
Recognition & Community: Many companies are using technology to automate recognition programs and make it more convenient and consistent for managers to recognize their front-line employees. With innovations in AI and communications, solutions like employee engagement software, digital recognition platforms and gamification systems have been developed to facilitate recognition and engagement for front-line workers. Furthermore, these new integrations allow for management to create a sense of camaraderie, culture, and familiarity amongst workers who historically have had little relationship with their co-workers.
Benefits: According to workhuman, less then half of today’s workforce is satisfied with their current benefits package. With the ability to segment the workforce into smaller groups and a wider range of benefits available, employers now have a chance to use these perks to enhance retention and employee satisfaction.
Training & Onboarding: Traditionally, L&D departments have used mundane videos that are hard to follow and often times lacking in thorough content. New methods of teaching and AI allow for Netflix quality content, more adaptive eLearning, and variety of other methods that have more proven success. With more holistic assessments and smarter AI technology, executives can now more easily identify the direct effect on skill development and their bottom line from training sessions.
Communication: While various tools have been developed to address the communication and scheduling needs of front line workers, they tend to be standalone solutions that are not fully integrated into the daily operations of employees. To truly support front line workers, there is a need for a comprehensive solution that is tailored to their specific needs and brings together features for prioritization, tracking, and teamwork.
Risks
There are a number of uncertainties that come with investing in front-line workers. The market for these technologies is rapidly evolving and has shifted significantly in the last decade, which can make it difficult to predict which products and services will be useful or in demand. Additionally, as shown in the section above, there is a lack of proven scalable track record for companies in this space as many are relatively new, which may cause concern for some investors. Lastly, there are a number of larger potential headwinds including immediate corporate cost-cutting and challenges in selling into the CHRO or Chief People Officer of an organization in the current economic environment.
Despite these risks, there is still tremendous financial and moral upside in investing in front-line workers. Recently, there has been renewed interest in helping front-line workers play a critical role in a number of industries which will likely lead to a boom in demand over the next few decades. Many organizations have come to realize that investing in technology for front-line workers can have a significant impact on their bottom line, by improving productivity, reducing costs, and enhancing customer satisfaction. While there are very few scaled companies in this space, as mentioned earlier, there are a number of new technologies that have unlocked products and services that can transform the way front-line workers operate. The opportunity to leverage these technologies can create a new category of companies that will generate substantial returns.
Conclusion
Taking care of front line workers is essential to the well-being of our economy as they are the backbone of many industries and their contributions should not be underestimated. As technology continues to advance, there will be an increased focus on creating solutions to improve their lives. From tools to automate repetitive tasks to systems for better communication and collaboration, these solutions will play a critical role in helping front line workers to be more efficient and effective in their roles. By investing in the well-being and development of front line workers, companies can create a positive work environment that will ultimately benefit everyone.