Supply Chain

Addressing the Shortage of Warehouse Workers

No Comments

The decline in the numbers of warehouse workers is not in dispute. The labor shortage has become a major concern to employers who are starting to feel the pinch. Motivated business owners are having to gain inventive to address the dilemma head on. Attracting new workers and incentivizing current ones to stay has become a priority; especially in the warehousing industry. Here are some of the methods warehouses and logistics companies are using to appeal to new candidates and maintain acceptable numbers of current warehouse workers:


Creative Bonuses And Cash Rewards

Many business owners offer retention bonuses to persuade workers to stay on the job. These incentives come in various forms. Cash bonuses are sometimes offered on a weekly basis and can lure and anchor workers to your site. End of the year, or holiday bonuses, in the form of cash or gift cards, are also good incentives for employee satisfaction.

Sign up and referral bonuses make compensation packages more attractive, and they don’t have to break the bank. These bonuses can bring more workers into your warehouse and help to reverse the employee shortage. Some managers have noted that, for many laborers, “a gas card has more value than a 401(k).” Such practical and cost-effective perks are easy to implement, and they can have an enormous impact on your labor pool.


On-Site Fitness Centers

On-site fitness centers can help organizations remain competitive in an evolving job market. Today’s health-conscious employee welcomes the convenience of being able to exercise before work, after work or during their lunch break. Access to such centers, where employees can walk, run, lift weights or do yoga can be a tremendous benefit to both employee and management. These company fitness programs reduce health insurance costs, curb absenteeism, and improve productivity. After all, a happier, healthier employee is a more loyal one who is more likely to remain on the job.


Flexible Shifts and Remote Work

Working parents, retirees and employees with second jobs benefit when a company offers flexible work schedules. Allowing workers to build a schedule that accommodates their lifestyles opens the market to a new pool of quality workers who might otherwise be unavailable. Remote work is also changing the face of the workplace. Advances in technology are making it possible for a wide range of jobs to be completed from remote locations. Duties like data entry, inventory management, dispatch and even assembly can now be completed remotely. In some cases, employees will often work for less money if they are able to do so offsite. It just takes a little creativity to incorporate remote workers into your warehouse.


Day Care and Company-Funded Dependent Care.

Another creative and much-appreciated employee benefit is access to company-funded child care. Many workers have turned down a job offer, or have chosen to remain at a job they’re dissatisfied with, based on access to company-funded child or dependent care. In today’s world of working caregivers, many are hindered from the ability to work because of the high cost of day care or elder care. Providing this much-needed benefit is one answer to this problem. Further, employers who provide free or subsidized child care assistance to their employees are able to deduct those costs as regular business expenses.


At Merchandise Warehouse, we’ve been able to significantly increase the number of our warehouse employees by simply creating an alternative workforce that gives “at-risk” laborers a solid chance at gainful employment. Attracting and keeping qualified employees has become more challenging. Visionary professionals who step up to the challenge are able to assemble an arsenal of recruitment tools and leverage them adroitly to entice and retain top talent. We, at Merchandise Warehouse, would love to exchange ideas to combat the labor shortage in the warehouse industry. Please visit our website at or reach out to us at 317-632-2525. We’d love to hear from you.

Tags: Supply Chain

Related Articles