Top 3 ways to attract and retain supply chain talent — FreightWaves

A survey of nearly 16,000 warehouse workers uncovers three key factors to attracting and retaining supply chain talent in anticipation of holiday peak season and single-digit unemployment rate

EmployBridge this week announced the findings of its eleventh annual Warehouse Employee Opinion Survey, shedding light on the labor shortage U.S. businesses face as the holiday peak season approaches. According to the national survey of nearly 16,000 hourly workers, wage corrections, shift preferences and more flexible human resource (HR) policies hold the key to attracting and retaining hourly workers.

“We are in unchartered territory as many employers prepare for peak season and seek to secure seasonal talent,” said Joanie Courtney, EmployBridge Chief Workforce Analyst. “With consumer optimism at record levels and unemployment in single-digits, employers must get aggressive and more creative in their efforts to find and maintain an adequate labor force in order to take advantage of increased consumer demands.”  

Pay ranked as the single most important factor for the eleventh consecutive year among warehouse workers. For the first time since the survey was established in 2007, a majority of 65% of warehouse workers reported earning hourly rates of $12 or more. (This compares with only 26% in 2014). According to EmployBridge studies, warehouse wages began increasing in 2014 but have more room for correction. From 2002 to 2014, wages for hourly workers have risen only 5.5%, while the cost of living grew over the same period by 29%.

“It appears from our survey findings that $12 an hour has become the bare minimum wage for warehouse workers however, we’re seeing many of our clients offering more attractive wages in order to secure quality talent given the single-digit unemployment market,” said Brian Devine, EmployBridge Senior Vice President and creator of the survey. “In fact, our data shows in certain markets employers are paying up to $2 more per hour to attract and retain workers during the upcoming peak season. In today’s environment, keeping abreast of changing supply and demand for specific skills in your local market is essential to securing the hourly workers companies need.”

When it comes to hourly workers’ shift preference, 67% of respondents say they want to work first shift and prefer 8-hour shifts. According to Courtney, as employers seek to expand their applicant pools for seasonal help and beyond, they should consider implementing 20-hour work weeks or an increased number of shorter shifts that can appeal to semi-retirees, students and working parents.

Companies that require second or third shifts to meet production demands may need to offer higher pay differentials, particularly in a tight labor market. According to the survey, hourly workers on average desire $1 more per hour to accept and stay on second or third shift, as compared to just $0.62 in 2011.