View original at logisticsviewpoints.com

employee engagement ARC Advisory Group recently did a survey that yielded some interesting findings of the current labor situation in warehouses and distribution centers. For instance, 50% of all warehouse job openings have five or fewer applicants, which is up from 32% five years ago. Of that smaller pool of applicants, half have no prior experience. At the same time, the survey found that turnover is higher than ever before. Also, a healthy overall economy, and a low unemployment rate have exacerbated the situation creating an ongoing labor shortage in the industry. To compensate, companies are investing more in automation. However, that’s not a panacea. In fact, over the next decade, there’s a projected 7% yearly growth in warehouse jobs. So there are more job openings, fewer applicants with less experience, and more turnover once an individual is hired. The balance of power has shifted from the employer to the employee. Workers have leverage now. If they don’t like their work at one warehouse, they can easily find a job at another one. Therefore, companies need to change their approach to the labor force. Paying a higher wage is not enough. Consideration needs to be given to other enticements like signing bonuses, stay bonuses, paid time off, flexible shifts and incentive programs. Today, success is more than just about productivity; it’s also about engaging employees. A greater need for greater efficiency At the same time, there’s an urgent need for workers, market changes have put more pressure on DCs than ever before. The era of omnichannel has arrived. B2B companies are making smaller, more frequent shipments. B2C customers are buying across channels using a wide range of fulfillment options. They’ve also come to expect faster shipping that is either low cost or free. Complexity is up. Delivery windows are […]