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Lower Turnover of Warehouse Employees Means Time and Money

Three warehouse workers in safety vests in a packaging warehouse.

Career Start Staffing Agency Tells You What it Takes to Lower Turnover

It takes a lot of moving parts to run a successful warehouse. It’s not an easy gig. It requires efficiency, strong leadership, and constant improvements in operations. Daily challenges from late shipments, quality control & supply chain issues, and shipments not arriving, all prevent items from moving in and out on time.  

One of the biggest challenges warehouse managers face is turnover rate. Since these jobs demand a lot of physical labor, a turnoff for most job seekers, good pay usually isn’t enough to retain an employee.

With no other benefits offered, workers will walk right out the door as soon as something better comes along. This causes the no-call, no-show that leaves you and staff members left behind scrambling. 

Until that role is filled, lost productivity and other indirect losses add up. The average cost to replace one warehouse worker is about $7K. So, if only 10 workers leave in a year, that’s $70K you’ve invested in employee replacement costs! And finding someone with specialized skills costs even more. 

So, why do employees leave?

  • Little to no feedback 
  • Minimal recognition
  • Being overworked
  • No opportunity for growth
  • Toxic work culture
  • Unsustainable productivity requirements
  • Injuries

One step you can take to lower turnover rates is to hire the right employee from the start. A common mistake by HR reps hiring for these positions is that they believe that due to the nature of the job, they simply need to find enough bodies to throw into the job, give them the minimum training, and hope they don’t jump ship. Companies that hire this way need to rethink their recruitment process or they’ll be recruiting endlessly.

It is recommended that recruiters test all potential employees. One resource that can be used is a computerized analysis tool such as the Wonderlic Personnel Test (WPT) to find the right person for the job. Visit Pre-Employment Testing – Aptitude & Skills Assessment.

Here are steps you can take to improve the atmosphere and lower your turnover rates:

  • Use incentive-based pay.
  • Give rewards such as additional time off.
  • Make sure warehouse safety is top priority. By keeping the warehouse clean, well lit, and free of clutter, employees and forklifts can maneuver freely. 
  • Regularly evaluate and streamline the entire warehouse organization  – picking and packing, inventory control, material handling, order fulfillment, inventory management, etc.
  • Conduct continual training for managers to keep their skills sharp. Over 50% of workers who quit, leave because of bad management.  
  • Acknowledge a job well done. “Hey Joe, great job streamlining the picking process.” It will make your employee feel valued and keep this spirits high.
  • Avoid favoritism.
  • Take Lindsay’s advice on culture in the workplace.

If you think your warehouse employees are going to leave, they probably will; however, if you treat them as if they’re making a career with your organization, they just may do just that. Long-term, dedicated employees will make for a successful warehouse operation.

Posted on March 8, 2021. Categorized as .

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