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How to Manage Staffing Issues in Your Warehouse

April 19, 2023 | Staffing Blog

If you’re responsible for warehouse staffing, you are already familiar with the staffing challenges that plague the industry.

According to recent stats published by the U.S. Bureau of Labor Statistics, the average turnover rate across industries is around 4%. When looking at warehouses nationwide, that turnover rate jumps to an astronomical 46.1%.

Knowing how to manage staffing issues is a critical part of the job. One of the cornerstone principles of a quality work environment involves having people who have been with your company for some time, understand the culture, and are committed to the company culture.

A high turnover rate, as most warehouses do, is not good for business. So, what can you do about it?

Consider These Strategies for Managing the Warehouse

Perhaps you are a warehouse manager who is struggling to retain good workers. Or, you’re a hiring manager in a company that operates a warehouse, and you’re staring at monthly figures that point to a high turnover rate.

No matter the situation, you can always implement strategies to support the warehouse labor force. You can take steps to ensure that you’re finding quality employees, training them, and retaining them.

If you’re wondering how to manage staffing issues to increase employee retention rates, we have the answers you’re looking for.

Improving Retention Starts at the Beginning

According to a 2022 study, 73% of warehouse operators acknowledge they cannot find enough people to staff their warehouses properly. It’s time to get proactive about finding the right people for the job.

Instead of waiting until there is a labor shortage in your warehouse, there are specific steps that you can take during the interview process to save yourself some stress in the future. Warehouse managers and HR leaders should constantly re-evaluate hiring practices, review the success of workers placed in roles, and find areas of improvement to attract more high-performing workers.

Taking a more strategic approach might take longer than you would like to correct a negative trend. However, taking your time is better than hiring anyone who applies for openings.

You want to avoid becoming so desperate for workers to fill critical openings that you hire anyone who applies. While this may provide a quick fix, you’re essentially applying a small bandage to a much larger wound. Take your time refining your approach and committing to continuous improvement.

Managing Expectations

One of the leading causes of staffing problems is the misalignment of expectations. Unfortunately, these misaligned expectations are often the result of unclear communication during the hiring process.

When prospective employees apply for a job, interview for it, and eventually accept it, they do so based on the information provided to them by the hiring manager. If you want your employees to commit to your company for the long haul, you must communicate clearly from the beginning.

A study published by PayScale says that 87% of employees do not trust their bosses. That number is staggering! The mistrust between employees and their employers generally goes back to promises made or certain communication to get someone to accept a job.

– For instance, if you’re hiring someone during a busy season in your warehouse, you should be upfront with your communication that they will likely be asked to work some overtime.

Many candidates will be excited about the opportunity to earn more money. However, other candidates may not be available to work more than a standard 40-hour work week, even with additional compensation available. Be clear upfront so that you don’t incur unwanted turnover.

It would be best to practice honesty with candidates regarding hours, pay, job responsibilities, and every other detail of working for your company. When you manage expectations early, you are less likely to lose employees to frustration or disenfranchisement because certain aspects of the job are not what they expected.

Competitive Pay

In December 2022, CNBC published an article about rising tensions between employees and employers. While their study didn’t focus solely on the warehouse industry, the numbers certainly translate.

CNBC also noted that 68% of employees in the United States don’t believe they are being paid enough. This lack of satisfaction with pay is one of the most common staffing issues that managers and HR leaders need to address., one of the leading names in the world of online job sites, reports that 96% of employees are actively looking for new jobs. Of those currently employed and looking elsewhere, most say they are looking for a new job because they want more money. You must be willing to pay the market rate to support employee retention.

If you cannot raise pay for workers to market rates immediately, consider another strategy, such as implementing a bonus structure or introducing other incentives for meeting production goals. Help your employees see the connection between performance and pay so that they are more committed to your company.

Find Support with How to Manage Staffing Issues in Warehouses

If you’re facing a labor crisis in the warehouse, consider working with a staffing agency to support the specific needs of your company.

At Allegiance Staffing, we take a holistic approach to supporting your warehouse. We will review the current operating reality, uncover reasons for workforce challenges, help you implement strategies to strengthen your current roster, and identify high-quality talent to fill open roles.

We thoroughly vet the candidates we identify for your warehouse, allowing you to choose from a highly qualified group of workers. Our solutions are especially beneficial when seeking extra help during busy seasons or supporting business growth.

Contact Allegiance Staffing today to set up a consultation about how to manage staffing issues with your warehouse. Our team is eager to provide you with quality employees to support the needs of your warehouse.