Overcoming Labor Challenges

The last five years have seen 57% growth in the number of warehouse and transportation jobs.

The average turnover rate for workers in this industry is 33%. In locations where Amazon has fulfillment centers the turnover rate is closer to 100%. As pandemic benefits come to an end, and unemployment numbers trend back toward pre-pandemic levels, warehouse managers are left trying to fill a labor gap in a highly competitive market where wages are escalating, and workforce participation is as its lowest level since 1976.

Enhanced benefits aside, key factors keeping workers from returning to warehousing jobs include lack of child care and fear of health risks. But more than that, warehouse jobs are simply less desirable because the work is physically hard and Millennials, the largest generation in the current workforce, bring a different set of values to their career choice. Millennials are driven by passion, engagement, and connection to social and environmental issues. Today’s warehouse work just doesn’t tick the right boxes for them. Companies must take a different approach to attract workers to this labor-intensive industry.

FORTNA continues to help companies overcome the labor challenges that stand in the way of growth and profitability. Advanced technologies including robotics, goods-to-person and other automation tools can help make the work physically easier through ergonomics and reducing travel. Flexible shifts, human-centered design and gamification can help align work to Millennial values. Developing a culture of engagement and tapping into non-traditional sources of labor can also go a long way toward filling that labor gap. Are you looking for new ways to address today’s labor challenges? The Distribution Experts at FORTNA can help. Contact us today.

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