Turnover among hourly store employees is consistently high, and it’s costing businesses more than lost shifts. Industry data shows that most stores replace 60% to 85% of staff each year, with fast food and convenience retail climbing past 100% BLS. Each replacement can cost employers $4,000–$5,000 once training, hiring time, and productivity are factored in Center for American Progress.
For companies trying to stabilize their workforce, referral programs have become one of the most reliable ways to reduce churn. That’s where Refered comes in.
Why Hourly Turnover Stays High
For most hourly store employees, churn is tied to pay that lags behind living costs, unpredictable scheduling, and limited career paths. Seasonal hiring often compounds the problem, with workers brought in quickly and trained just enough to cover immediate demand. These conditions make roles feel temporary, even when employees might prefer long-term stability.
The lack of connection to a store’s culture or team also plays a role. Without consistent managers, clear communication, or opportunities to grow, many workers see little reason to stay. As a result, turnover becomes a cycle that repeats year after year, straining both employees and employers.
The Business Impact
Constant turnover isn’t just an HR problem. Stores facing heavy churn often deal with:
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Higher training demands
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Gaps in scheduling coverage
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Inconsistent service quality
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Lower team morale
These challenges make long-term improvements difficult. Employers end up stuck in hiring mode instead of focusing on customer experience. Over time, the pattern creates added costs and prevents managers from investing in initiatives that could strengthen both operations and employee engagement.
Employers Struggle to Hire
A recent survey of nearly 1,000 service industry professionals found that 70% of employers struggle to hire hourly staff as turnover and costs rise. Respondents reported an average 49% annual turnover rate for hourly employees, costing about $4,969 per worker. For managers, turnover rates increased more than 300% year-over-year.
The same survey highlighted a mismatch between HR and store managers. While HR teams often believe hiring challenges are under control, frontline managers are more than twice as likely to say finding qualified candidates is very difficult. This disconnect can leave stores short-staffed and slow to address turnover at the ground level.
Recruitment Channels Under Pressure
Employers are also finding that traditional hiring channels aren’t meeting their needs. While most workers still come from referrals (71%), company websites (59%), and job boards (59%), the quality of candidates from these sources varies widely. Social media has become a rising channel for quality applicants, increasing 28% year-over-year, while walk-ins and local ads continue to underperform.
These trends show why referral programs remain critical. Employers know that referrals bring in stronger candidates, but many still lack the tools to run them effectively. That’s where Refered helps companies close the gap between applicant volume and quality.
Where Referrals Make a Difference
Referral hires consistently perform better and stay longer. They enter with realistic expectations and a built-in connection to the team, which reduces the risk of quick exits.
Refered was built to make referrals practical for high-volume and hourly hiring. The platform gives businesses:
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Simple referral submissions in seconds
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Real-time tracking of hires and payouts
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Bonus flexibility, from hourly milestones to completion rewards
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Dashboards that show program performance at a glance
This approach removes the common barriers that slow referral programs down. By automating the process and making it simple for employees to participate, Refered helps businesses bring in stronger candidates while reducing the admin workload for HR teams.
Retention Beyond Referrals
Referral programs are most effective when combined with operational improvements. Many employers see results by improving onboarding, providing stable scheduling, offering regular feedback, and introducing small growth opportunities.
These steps don’t require a full HR overhaul, but they show employees that their time and contributions matter. When paired with a referral system like Refered, retention strategies become more effective and easier to measure.
Moving Forward
Turnover rates of 60% to 85% don’t have to be accepted as the norm. By building a referral-driven hiring approach with Refered, and backing it up with smarter retention practices—employers can cut costs, strengthen teams, and create a more stable workforce.
