Legion Technologies, an innovator in workforce management, today released the 2025 edition of its annual State of the North American Hourly Workforce Report. The report, which surveyed over 750 managers and over 1,200 hourly workers, comes as businesses reliant on hourly labor face heavy tariffs, supply chain instability, and tanking consumer demand. These pressures have exposed the shaky foundations of companies’ hourly labor strategies, revealing a dire need for new technologies and practices that will help them cut costs and boost productivity.
However, the data reveals these businesses are struggling with inefficient labor management processes. 59% of managers are spending three or more hours on scheduling tasks each week, with more than 39% relying on outdated paper methods or simple software to create schedules, and 40% still calling and texting to fill available shifts. AI offers tremendous potential to automate these tasks and free up managers’ time, but only 11% are using AI-enabled scheduling tools today.
Despite efficiency drains, productivity is top of mind for employees and managers alike:
- When asked why schedule flexibility is important, 44% of hourly employees stated it’s because they want the freedom to work when they’re most productive.
- 38% of managers are concerned that high turnover will impact team productivity
- More than 84% of managers stated they would be interested in technology that enabled them to calculate hourly employee productivity.
- 86% of managers stated they would be interested in technology that enabled them to automatically schedule their most productive employees at peak times.
“We’re in a high-cost environment and, as companies work to reduce their operational waste and maximize labor efficiency, AI is a lifeline,” said Sanish Mondkar, CEO and founder of Legion Technologies. “Our data shows that managers are grasping for that line, but there is a disconnect between what these vital employees need and what they’re being given. Now is the time for organizations to invest in AI to lift the administrative burden from managers, improve productivity, and adapt to changes in demand. When companies use AI to drive their workforce management and optimize shifts, they can make the most of every labor hour – and right now, those hours count more than ever.”
Economic uncertainty weighs heavily on today’s hourly workforce. Legion’s survey found that 49% of managers say they’re concerned about their job security—and the top reason, cited by 52% of these respondents, is uncertainty about the economy. Of the 49% of hourly workers who plan to leave their jobs this year, nearly 60% plan to leave their current industry altogether, with insufficient pay as the top reason for their exit.
Employers face another challenge: heightened dissatisfaction from hourly employees. Per the report, 27% of hourly employees wish for unionization in their workplace to address low wages, poor benefits, poor work-life balance, and limited schedule flexibility. Despite these concerns, 43% of hourly employees say their employers have not done anything to improve the workplace in the past year. This inaction from employers could be part of why 47% of managers consider staffing shortages and high turnover to be the biggest challenge in their role today.
“Amid unpredictable demand and turbulent market conditions, engagement and efficiency are parallel missions,” said Mondkar. “High-performance, AI-optimized schedules and operational agility will lead to a more flexible, more resilient workforce that can weather today’s challenges and emerge stronger tomorrow. You can invest in your people without spending more, and because of it, you’ll be better prepared to face a volatile market.”
To learn more about how Legion’s AI-driven Workforce Management Platform helps organizations control costs and maximize labor efficiency, visit legion.co.
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