The Manager’s Playbook: Insights on Hiring Hourly Employees

Jordan

Welcome to The Manager’s Playbook, the podcast where we break down the complexities of management into actionable insights. I’m Jordan, and in today’s episode, we’re diving deep into one of the most critical—and challenging—aspects of your job: hiring hourly employees.

Taylor

Thanks for having me, Jordan. Hiring is indeed a cornerstone of effective management, and getting it right can make all the difference in building a strong team.

Jordan

Let’s start with the basics. Why does hiring matter so much, and what happens when you get it wrong?

Taylor

Hiring the right person isn’t just about filling a position—it’s about building a team that drives your business forward. A bad hire can cost you up to 25–30% of an employee’s annual wage when you factor in turnover, lost productivity, and recruitment costs. Additionally, a poor hire can lower team morale, increase training costs, and, in customer-facing roles, potentially damage your brand.

Jordan

That’s a significant impact. So, what’s the biggest mistake managers make when hiring hourly employees?

Taylor

The biggest mistake is rushing the process. When time is short, it’s tempting to choose the first candidate who appears ‘good enough.’ However, this shortcut often leads to hiring someone who isn’t the right fit—someone who might leave after a few weeks, leaving you back at square one.

Jordan

Let’s talk about the hiring process itself. What’s the best way to approach resume screening and prescreening?

Taylor

First, HR conducts an initial screening to filter out resumes that don’t meet basic qualifications. Then, as a manager, you review the remaining applications using a structured scoring system—narrowing the pool down to a manageable number, say 10 to 15 candidates, depending on the role. A brief prescreen call is used to confirm key non-negotiables—like shift availability or necessary certifications—and to provide candidates with guidance on what to expect during the interview.

Jordan

How important is the interview stage in determining the right fit?

Taylor

The interview stage is crucial. You need to balance three key areas: technical skills, culture fit, and trainability. Start by clearly defining the role’s requirements and prepare a set of structured, consistent questions. For example, ‘Tell me about a time you overcame a challenge at work,’ or ‘How do you handle feedback?’

Jordan

Pay decisions are another critical aspect. How should managers approach setting wages?

Taylor

When setting a wage, you’re not just deciding an individual’s pay—you’re affecting your entire labor budget and scheduling flexibility. Consider the budget impact, future headcount, and room for growth. Review the approved wage band provided by HR, assess the candidate’s experience and training needs, and calculate the wage’s effect on your overall budget.

Jordan

What’s the final step in the hiring process before onboarding?

Taylor

The final step is the final hiring approval—a critical checkpoint before any HR forms are submitted. Every request must be fully approved by leadership. Complete the New Hire Action Form, obtain all necessary approvals, and ensure HR reviews the documentation for compliance.

Jordan

Finally, how should managers handle the offer letter and onboarding process?

Taylor

Once all approvals are in place, extend a verbal offer clearly communicating the pay, start date, and job expectations. Then, send a formal offer letter that outlines salary, benefits, and company policies. Ensure the candidate signs the offer letter and completes all necessary forms—such as I-9, tax forms, and policy acknowledgments—before their start date.

Jordan

To wrap things up, here are a few key takeaways: Follow the full process, don’t rush, get it in writing, and balance is key. By following this definitive hiring guide, you’ll build a stronger, more cohesive team, reduce turnover, and ensure your department runs smoothly.