Many Americans have low-wage jobs, and society and employers often overlook them. Now, organizations are struggling to fill these underappreciated yet vital roles that affect the efficiency and functioning of many organizations. Recently, a recent report from the Harvard Business School suggests that employers do a better job of understanding why these roles are so hard to fill.

For low-wage employees, many employers show little engagement, provide minimal support for skill-building, give unclear feedback, and offer no guidance on career pathways. Due to this neglect, employers are finding it challenging to fill these roles. The report suggests that employers attempt to understand low-wage workers’ needs and take action.

Wages

A pay increase gives the worker more money, reduces race-based income inequality and increases family income. Furthermore, it encourages productivity and reduces employee turnover. The benefits and challenges of the different pay types and wages depend on the company and its employees. Raising pay might require external factors such as minimum-wage legislation, labor union pressure or informal industry norms.

Leaves

The report suggests that paid and unpaid time off for workers improves job continuity and economic mobility. Workplace leaves can also increase the percentage of women in the workforce. However, there is the risk of companies avoiding hiring women because they are scared they will use the leave.

Recruitment and Hiring

Utilizing practices like formalized hiring processes, targeted recruiting, and internships can expand access to higher-paid roles. The most significant barrier to these practices is existing formal education credentials like a college degree. Structural barriers can prevent racial minorities and women from acquiring credentials and maintaining a continuous work history. Unfortunately, this may appear less trustworthy or as proof of a lack of commitment to hiring managers.

Promotions

A promotion can be a direct way for low-wage employees to increase their income, while companies benefit from motivated workers eager for job mobility. Unfortunately, internal hiring is not always an opportunity for lower-wage workers. The report’s authors believe there is a need for structured career ladders that avoid segregating marginalized groups. Additionally, low-wage workers might benefit from skill-building pathways and job switching.

Work Systems

Improving work systems such as worker autonomy, social networks, and employee training fosters alignment between employer and employee outcomes. The belief is that employees will be more productive, resulting in a purpose shared by employers and workers.

Inclusion Initiatives

Set diversity goals, and you can encourage hiring managers to prioritize qualified applicants from underrepresented groups. Consider an employee resource group that can help with mentoring and create a supportive culture. Diversity training can reduce manager and co-worker bias. Let the pros at Exact Staff develop a service profile for your company. Exact Staff is a cost-effective, peace-of-mind solution that allows you to concentrate your skills on what you do best.