The labor market has become extremely competitive. Between high turnover and the Great Resignation, businesses are challenged not only to find workers, but also retain them.
Many workers are moving from other industries to warehousing, creating an opportunity for employers in this space. The cost and time required to hire and train these new employees can be high, but losing workers drives up costs. In an environment of low employee availability and high demand, job seekers are looking for the best opportunity. While interest is high for warehousing roles, the challenge of retention exists.
According to various surveys, individuals are changing roles due to a lack of recognition and growth opportunities, as well as a desire to have the business invest in them through skills development and training.
Work in the warehouse can be demanding. Management needs to create a structure that gets the most from employees, while showing them how invested the business is in their success. In addition, management must navigate the complexities of generational differences, as well as large variances in staff tenure. Most warehouses have either long-term, tenured staff or new employees, with not many others falling in between that range.
How can businesses achieve lower employee turnover? The answer is taking advantage of strategies that prioritize employees, challenge workers, recognize success and offer opportunities to grow.
Building the culture
It can appear challenging to engage employees at the warehouse. The position involves repetition, as well as a cultural dynamic where some employees simply want to do the job, while others strive for career growth and advancement. Unlike other roles where working remotely is an option, warehouse work happens on site.
A key priority for warehouse operators is establishing a culture that emphasizes the employee. This starts during the onboarding process, with the establishment of clear goals and measurement systems. Explicitly identified standards, processes and goals streamline the onboarding process, reduce the time-to-value of the new hire, and give them an understanding of how their performance will be assessed.
Following the onboarding process, communication, continuous feedback, coaching and development are critical to driving retention.
It’s not just about measurement — it’s about employee investment
Businesses invest in warehouse management system (WMS) and labor management solutions to drive productivity gains in the warehouse. These technologies automate processes and simplify work for the warehouse staff. When leveraged as part of a broader strategy, these technologies can offer a conduit to deeper employee engagement and, ultimately, higher retention.
Consider a busy forward pack area with multiple lines. With WMS and labor management solutions, the supervisor has a clear view to the work being performed, as well as productivity levels. Like any coach, this supervisor can walk the floor to engage with the packers, letting them know how they are doing and providing encouragement. What may seem like a simple action shows the staff that the company has made an investment in them — through technology — to help them be successful.
Measure more than units per hour
Warehouses that have yet to leverage advanced labor management solutions still measure employee productivity. Typically, this is accomplished via some calculation such as units per hour. Unfortunately, in larger warehouses with complex activities that involve varying distances and weights, these types of simple computations can lead to frustration on the part of the warehouse worker. Measurements such as units per hour don’t consider variables such as weights, cube and distance traveled. In addition, this type of measurement encourages staff to prioritize the easier tasks that will drive up their units per hour.
New labor laws are being passed, such as the California Labor Law AB 701, to help ensure employees’ required work does not interfere with meals, limit rest periods or violate occupational health and safety standards. A labor management solution supports compliance with these laws by creating a safe work environment. Employers can leverage discrete standards for granular work assignments with defined methods for each task, including proper allowances for breaks.
Investment in a labor management solution shows that the business understands the complexity and different types of work to be performed, and that the company cares about accurately measuring employee performance. Digital solutions ensure that more complicated tasks are accounted for in productivity measurements, which means these tasks are less likely to be avoided or delayed. In addition, digital solutions help set realistic expectations about how to perform tasks safely, accurately and at a high quality.
