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High turnover among deskless workers linked to pay, benefits gaps, study finds

by Todd Humber

High turnover rates among deskless workers—employees without fixed offices in fields such as healthcare, retail, and construction—are being driven primarily by dissatisfaction with pay, benefits, and job stability, according to a new report from the Society for Human Resource Management (SHRM) and Fidelity Investments.

Deskless employees, who represent 70% to 80% of the global workforce, have turnover rates that are 1.6 times higher than those in office-based roles, the report stated. The turnover can cost businesses millions of dollars annually, disrupt operations, and strain essential industries.

“Employers need to rethink how they view deskless workers,” said Alex Alonso, SHRM’s chief data and analytics officer. “The data tells us these workers are not just passing through—they want stability, engagement, and opportunity.”

Pay, benefits, stability drive decisions

The report, “From Turnover to Tenure: Insights for Retaining Deskless Workers,” identified compensation as the leading factor for employees planning to quit, cited by 38% of respondents. Better benefits followed closely, cited by 30%, and job stability was highlighted by 27% of employees as reasons for considering a job change.

Workers who stay in their positions cited job stability, positive work-life balance, and satisfaction with their current scheduling arrangements as key retention factors. The findings indicate specific areas employers can focus on to improve retention.

Gaps in benefits perception

Although competitive pay and benefits are widely recognized by HR professionals as key retention tools, there is a noticeable gap in their perceived effectiveness. The report found 61% of HR professionals consider competitive pay highly effective at retaining employees, but only 49% rated competitive benefits as equally effective.

“This gap highlights the need for organizations to better understand their employees’ specific benefit preferences,” Alonso said.

Managers pivotal in employee retention

Managers play a critical role in employee retention, particularly among deskless workers. Those employees who reported intentions to stay often cited strong relationships with their direct managers as a key reason.

The study noted several strategies managers use successfully, including flexible schedules (40%), consistent weekly hours (35%), and advanced notice of scheduling (29%). However, despite their effectiveness, fewer than half of managers currently implement these practices, indicating room for improvement in managerial training and support.

Recommendations for improvement

Given the significant retention challenges identified, SHRM and Fidelity Investments recommended employers adopt data-driven strategies targeted specifically at deskless workers. Enhanced managerial training, clearer communication of benefits, and increased schedule flexibility are suggested as methods to stabilize and engage this crucial segment of the workforce.

“By implementing targeted strategies based on data, organizations can improve retention, productivity, and employee engagement,” Alonso said.

About the research

The report was based on surveys conducted in October 2024, involving 1,388 deskless workers across various industries in the U.S., including 505 who manage deskless teams. An additional survey of 1,152 HR professionals was conducted through SHRM’s Voice of Work Research Panel, capturing insights from organizations employing both deskless and office-based workers.

Deskless roles often come with unique challenges, including irregular schedules, limited direct access to human resources, and reduced communication through traditional work platforms, the report noted. These challenges underline the necessity for customized retention strategies tailored to their specific needs.

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