Retain Your Warehouse Team: What You Need to Know to Avoid a Labor Shortage
Across the United States, supply chains are maintained largely thanks to warehousing and distribution solutions that help goods move from manufacturers to retailers and their customers.
Warehouse employees are essential to this complex process, ensuring goods arrive at the correct destination on time and in perfect condition. However, even though the job is crucial for the success of the supply chain, warehouse, and distribution companies are experiencing a shortage of employees. We look into why this shortage occurs and what businesses can do to attract and retain experienced warehouse workers.
What Would Cause a Labor Shortage in the Warehousing and Distribution Industries?
The labor shortage in the warehousing and distribution industry can be attributed to several factors:
- Increased Demand
The rapid growth of e-commerce has significantly increased the demand for warehouse workers to handle online orders. This additional line of business has led to the expansion of warehouse operations, further increasing labor demand to maintain robust supply chains.
- Labor Market Competition
With historically low unemployment rates in recent years, competition for semi-skilled labor across various industries has intensified, making it harder to attract warehouse workers. Other sectors often offer higher wages or better working conditions, drawing potential workers away from warehouse jobs.
- Working Conditions
Warehouse work is physically demanding. It can involve long hours and continuous lifting, which can deter potential employees. In some cases, warehouse conditions can be harsh, with workers dealing with extreme temperatures, noise, and strict performance requirements.
- Skills and Training Gaps
The shift towards more automated and technologically advanced warehouses and the adoption of more sophisticated Warehouse Management Systems (WMS) requires workers with different skills. Limited access to training programs for the new skills needed in modern warehouses could create a gap between the available workforce and the skills required for the job.
- Geographic Disparities
Many warehouses are located in areas with a smaller labor pool, making it difficult to find and successfully recruit enough workers locally. While warehouses in rural and industrial areas can struggle to find local labor, a lack of reliable transportation options also limits potential workers’ ability to commute to further out warehouse locations.
How Can a Company Attract and Retain Employees?
Companies can implement several strategies to attract and retain experienced warehouse workers, including providing employees with competitive compensation, medical benefits, a better working environment, and more. Such as:
- Competitive Compensation
Offer competitive salaries and regular pay increases to make the profession more financially attractive. Just meeting market “average wages” will not work if you want to attract and retain the best labor in your given market.
- Benefits
Provide benefits, including health insurance, retirement plans, and paid time off, to enhance job security and satisfaction. Extending medical insurance to employees’ family members is also beneficial.
- Improved Work-Life Balance
Warehouse employees work long hours, but maintaining a balanced shift schedule allows them enough rest time and time to spend with their families, improving their quality of life. Creative shift scheduling of 10 and 12-hour shifts can give employees additional days off weekly, providing more time for family needs or second or side jobs.
- Enhanced Working Conditions
Invest in modern and well-maintained facilities that ensure employees are safe and comfortable in the workplace. For example, warehouse employees working in ambient and temperature-controlled warehouses benefit from pleasant working conditions all year round. If the warehouse isn’t temperature-controlled, take extra steps to ensure employees are comfortable during extreme hot and cold weather.
- Technology and Support
Use advanced technology to improve warehouse operations. These systems assist with the organization and flow of goods through the warehouse and help streamline an employee’s work. Mastering new technology also fosters higher job satisfaction on the warehouse floor.
- A Positive Work Environment
Foster a supportive and inclusive company culture that values and respects employees and recognizes their contributions to the company’s success. Celebrate success. Prioritize employee development and job satisfaction, promoting inclusivity and diversity.
- A Focus on Safety
Prioritize employee safety by maintaining rigorous safety standards, investing in equipment that improves safety conditions, and providing ongoing training to reduce job-related stress and injuries. Safety must be a priority and operating facilities that beat industry standards for accidents and lost time incidents are a point of differentiation in recruiting
ABW’s High Labor Retention Rate
We believe that providing our customers first-class service starts with securing and retaining the best employees. Our wage structure is competitive across all the states in which we operate and our exceptional benefits scheme is in the top 10% of all 3PL providers nationally.
ABW is a family business driven by the success of our team. We prioritize their safety and development throughout their careers with us, and we have one of the lowest employee turnover rates in the industry. If you want to join our team, please contact us at our Employment Opportunities page.
If you think ABW is the ideal 3PL partner for your business, contact us today.