What's the real culprit behind high turnover with hourly production workers? The blasted point system.
I rant about this all the time. Picture this: A solid worker gets three points in 90 days—late twice, absent once. Next thing you know, we’re showing them the door. And I guarantee you, the folks doing the firing have probably done the exact same thing. But since they're salaried and white-collared, it's somehow okay for them?
Here’s the kicker. That production worker, making 15 bucks an hour with no benefits, stuck in a dull job day in and day out.
Why? Because I need them right there, so I enforce these ridiculously strict rules to keep them. But let’s be real—it’s not working. They're quitting like crazy, and anyone in HR or recruiting knows.
Now, if we didn't have that damn point system, our turnover wouldn't be anywhere near what it is.
Now what you're thinking... "But Todd we'd probably have chaos because nobody would show up?" The answer to that is - you have to manage it.
I was talking to a client the other day who is ditching the point system for something way better—bankable hours.
That’s right.
If you need an afternoon off or you’re running late because life happened, you use your bankable hours. No points. You only get so many, so it’s not like everyone's going to take off nonstop.
This shift is huge.
It’s a move from pointing fingers and penalizing to acknowledging that life happens. A client of ours is giving workers bankable hours to use for those life moments, without the fear of getting fired or racked up with points.
Big applause to this client for rolling this out because you’re acknowledging a system that just isn’t working and you’re brave enough to try something new.
So, what’s your take? Ready to drop that old point system?