The past few years have clearly revealed a number of challenges for frontline industries. Retail sales have either been flat or declining, while uncertainty around trade policy continues to impact a wide range of industries. On top of that, inflation has led to higher operating costs across the board, forcing companies to pay more attention than ever to the bottom line.
By investing in employee retention strategies focused on career development, education benefits, and support from leadership, you can address frontline employees’ top concerns while building a loyal, engaged workforce to combat these looming economic issues.
Retention is the New Recruitment
EdAssist by Bright Horizons recently hosted a webinar on why employee retention translates into tangible ROI. 94% of workers would stay longer at a company that invested in their education, so companies need to focus on strategic outcomes like fostering internal mobility, filling critical roles, and improving employee retention. These bottom line metrics are much more impactful than standard participation or completion metrics, and realigning these priorities can add a layer of stability during a time when little else feels certain.
Watch the On-Demand Webinar: Maximizing ROI of Your Workforce Education Program
Retaining frontline workers is critical because these industries are competing for a shrinking labor pool. An aging workforce combined with declining birth rates (particularly since 2008) means that frontline industries are also competing with alternative work opportunities like gig jobs that offer more flexibility. Here are three proven strategies to help your organization retain your frontline employees, strengthen your bottom line, and bypass economic uncertainty.
3 Proven Strategies to Retain Frontline Employees
Frontline employers have another issue to contend with: above average employee turnover rates. The statistics vary by industry and average 73.8% in hospitality, 56.7% in transportation, and 21.9% in professional services. Churning through employees leads to workforce disruptions, employee burnout, and lack of business growth.
Develop clear career pathways
Frontline employees need help figuring out what their next steps are in order to feel compelled to stay with a company. In a 2024 McKinsey survey, career development was the number one reason why frontline retail employees left their jobs.
You can create a competitive advantage over nontraditional contract work by giving your employees a clear vision of their future at the company. Healthcare companies, for instance, could map out how to become a lab tech or other in-demand role. Fast food and quick-service restaurants (QSRs) could demonstrate what it takes to work your way up to a managerial role. Crafting and marketing these development opportunities in the workplace can make a major difference in keeping your frontline workers motivated and engaged.
Career Pathway in Action:
One EdAssist client in the healthcare industry faced 1,600 open nursing positions last year. The organization partnered with EdAssist to create a career pathway program with prepaid education assistance specifically for those high-vacancy nursing roles. Jessica started off as a multifunction tech but became a graduate of the career pathway program with the help of $23,000 in tuition assistance.
Her first promotion was to a clinical nurse I role, later followed by another move into a clinical nurse II position. Each position costs the organization $56,000 to replace; considering Jessica moved into two hard-to-fill roles, the organization saved $88,000 on a single employee following their career pathway.
See more examples in the webinar, Maximizing ROI of Your Workforce Education Program
The majority of workers say they want to develop their skills but don’t know where to start. When an employer fills this void with information (and opportunities) on how an employee can advance their career, you provide a retention incentive compared to gig work without that level of support.
Offer education benefits that work for frontline employees
Pay and benefits are still foundational components of keeping hourly, frontline employees happy at work. In addition to showing them advancement opportunities, the right education benefits can seal the deal in keeping your employees happy in their jobs. In fact, 82% of workers would choose a job at one company over another based on availability of education assistance. So if you’re not providing benefits that make sense for your employees, you’ll end up losing frontline staff to companies that do choose to invest in these areas.
There are a few proven examples of education benefits that work for frontline roles.
Tuition assistance: Offer tuition payment options that make sense for your company and your workers. McDonald’s, for instance, has a number of assistance programs under its Archways to Opportunity program, including English language courses, high school diploma programs, and affordable paths to college.
Student loan repayment: Not all frontline workers may have student loan debt, but it’s likely a major financial burden for those that do. Overwhelming student debt balances prevent employees from wanting to spend more on additional education opportunities. Companies can help by offering student loan repayment benefits or retirement matches based on employee loan payments
Individual coaching: Many frontline workers need guidance on how to feasibly incorporate new learning opportunities into their lives. Expert coaches at EdAssist address all of the challenges frontline employees face when deciding whether or not to go back to school, including time, confidence, and cost barriers.
Equip people managers
Create a strategy to equip managers with the resources they need to engage their frontline staff. Most employees don’t know what their options are, but 42% of managers don’t feel they have the resources to properly support their direct reports in learning new skills.
Overstressed people managers lack time, tools, or visibility to support employee career mobility, stalling internal growth and retention. Good people managers are hard to find. The role of manager has changed a lot and many are also managing tasks/work.
Encourage continuing education among managers who can put education benefits into action and share their experiences. For example, dedicate a manager meeting to providing them with information to support their employees’ learning/career goals. This will help them facilitate conversations about available benefits to encourage frontline employees to use them.
Retention adds stability even during uncertain times
Holding onto frontline talent is an issue that must be taken seriously at an organizational level. Prioritize people-first investments so that no matter what economic conditions occur, you have the right team in place to handle both challenges and opportunities. After all, companies that focus on retention now will be better positioned for success as the economy rebounds.
At EdAssist, we've seen it all. From industry disruptions to evolving learner needs. We're built to flex, not break. Ready to craft an education benefits program will help your organization weather economic uncertainty? Schedule a free consultation to get started.
