Voluntary attrition is robbing many industries of their workforce, and the supply chain industry is no exception. According to the U.S. Bureau of Labor Statistics, over 4 million workers willingly left their jobs. This trend is not slowing down, and many warehouses are feeling the pinch of both voluntary attrition and hiring freezes.
Faced with this reality, warehouse managers must look for new ways to hire and retain workers. Using traditional staffing methods is no longer enough. However, the cost-per-unit model has helped many of our clients bring 50 -- or more -- warehouse staff through our innovative team-based method of attracting, recruiting, onboarding, and retaining them.
Why are People Leaving Traditional Jobs?
Workers are leaving traditional jobs and opting for other sources of income for many reasons. Here are some of them:
Burnout
One of the leading causes of the great resignation is burnout. Most traditional warehouse staffing models place too much emphasis on a few key metrics, such as productivity and output. It can ultimately lead to fatigue and dissatisfaction. Workers want a job that allows them to spend more time with their families. They want to be able to take vacations and spend time doing things they enjoy.
Low Pay
In a Pew Research survey, 63% of respondents said low wages and few benefits are the main reasons they left their jobs. While the job itself may be rewarding, if the salary isn't enough to cover basic living expenses, it can make it difficult for a worker to stay motivated. That is why retaining talent has become a tall order in most industries, especially the light industrial industry.
Poor Working Conditions
Every job comes with challenges, but workers shouldn't have to endure toxic working environments. Unfortunately, a lack of empathy from employers and poor working conditions is causing people to rethink their career choices. Many talented people are opting for other sources of income that offer better flexibility and working conditions.
The Cost of Recruiting Employees
The cost of recruiting and onboarding a warehouse employee is often overlooked. The traditional staffing model can be expensive, requiring recruitment fees, advertising, and other associated expenses. Additionally, the new employee may take several weeks to become productive. Training warehousing staff is also an expensive and time-consuming task.
Recruiting and Retention Strategies for Warehouse Employees
Warehousing is a competitive market, meaning employers must find ways to attract and retain talent. Here are some of the most effective strategies:
- Offer competitive salaries: Workers want to be fairly compensated for their efforts. That's why employers need to give competitive salaries and bonuses.
- Provide flexible working hours: Warehouse workers often have busy lifestyles, so flexible working hours are key to attracting and retaining staff.
- Offer incentives: Many warehouses use incentives like bonus pay or extra vacation days to reward hard-working employees.
- Invest in training: Employers should invest in training and development to keep their warehouse staff up-to-date on the latest trends and technologies. This approach enables them to stay motivated and engaged.
- Offer a positive work environment: Such an environment is essential for employee morale, so employers should strive to create a culture of respect and appreciation.
Recruiting, onboarding, and retaining new warehouse employees is a daunting task for any industry. The traditional staffing model is inefficient in addressing many companies' labor shortages. Developing a strategy that addresses all these challenges is key to success. The difficulty you will face as an employer or a warehouse manager is harmonizing your employees' needs with the business's demands.
If you can strike a balance between these two, you will be well on your way to finding and retaining top talent. The Managed IA Cost Per Unit model is one effective way to ensure you get the best value for your money regarding warehouse staffing.
The Eclipse IA Managed Cost Per Unit Model
The Eclipse IA managed cost-per-unit model is a warehouse staffing solution designed to control labor costs, reduce waste, and increase efficiency. Unlike the traditional staffing models, it employs a team pay structure. In this model, the workers are referred to as industrial athletes. They work together to achieve a common goal and are paid according to their team performance. Most importantly, the compensation is equal, putting them in the same boat.
Advantages of the Model
- Increased efficiency: Warehouse managers can expect increased efficiency by having a team in place. This is because the team members can work together to complete tasks quickly and accurately. Instead of every athlete trying to outdo the rest for more benefits, the team works together for a common goal.
- Reduced labor costs: The model helps minimize labor costs by eliminating the need to hire continuously and onboard new staff. Its very foundation ensures that each team member is compensated equally. Moreover, Eclipse industrial athletes feel motivated and comfortable working together as equals.
- Encourages productivity: Individual motivation can sometimes be detrimental to productivity. By having the team work together, industrial athletes feel safe, supported, and motivated to be productive. They don't have to worry about being underpaid or overworked.
The CPU model is not siloed like the typical temporary staffing agencies. Employees working in such a system have a higher job satisfaction and better wages. Keeping them happy and motivated is effortless; thus driving a higher return on investment and creating a more productive workforce. Besides, industrial athletes enjoy great flexibility regarding job scheduling. It gives them a sense of freedom and control over their work life, leading to higher productivity and retention.
Eclipse Advantage: The Ultimate Partner for Streamlining Your Warehouse Staffing Needs
Recruiting, onboarding and retaining warehouse workers can be a challenge. But with the Eclipse IA managed cost per unit staff management model, employers may find it easier to recruit, onboard and retain new warehouse workers. This model helps create a harmonious work environment between employer and employee that encourages productivity and job satisfaction.
At Eclipse Advantage, we offer flexible ONSITE supply chain workforce solutions. Our CPU model is built into the backbone of our business. As your dedicated partner, we help you figure out a customizable solution that's right for you and your warehouse. For assistance in implementing our workforce model, contact us today!
