The Real Cost of High Turnover Rates in the Warehousing Industry

From supply issues to mechanical failures, warehouse managers often face a steady flow of new challenges. One of the lingering issues that many warehouses face involves high turnover rates. It costs time and money to train new employees, and high turnover rates mean warehouses are constantly investing in workers only to see the investment walk out the door afterwards.

Thankfully, there are steps you can take to mitigate turnover in your warehouse. Keep reading to learn more about the real cost of high turnover rates in the warehouse industry and what you can do to improve worker retention.

The Challenges of High Turnover

For many facilities, the cost of high turnover can be extreme. Losing an employee and training their replacement often costs a warehouse twice as much as retaining an experienced employee, and there may be more than one reason for this.

First, the time and resources that go into hiring, onboarding, and training someone can be significant. Not only does this process have its own direct costs, but high turnover can also drastically reduce productivity within a warehouse. New hires are prone to mistakes, and training them often requires pulling experienced workers from the floor to assist.

What’s more, hiring new employees is not an immediate fix. During the time it takes to hire and onboard a new employee, the position remains empty and unproductive. If other employees are forced to pick up the slack for that empty position, it could result in the kind of frustration that leads to high turnover in the first place.

Causes of High Employee Turnover Rates

There are many different reasons why employees might leave a warehouse. These issues vary substantially given that every employee is seeking different things from their career. Many workers cite unsustainable requirements for productivity as the reason for leaving, while others decide to pursue a career with a lower risk of physical injury. Some of the other potential causes of high turnover rates in a warehouse include:

  • Understaffing
  • Being overworked
  • Limited feedback
  • Lack of incentives for performance
  • Unpleasant work environment

Steps to Reduce Turnover in a Warehouse Setting

Ultimately, every worker has their own reason for leaving. The good news is that you can make changes in your warehouse to address many of the issues that cause high turnover rates. The most direct approach involves increasing worker pay across the board.

Otherwise, focusing on reward systems or other bonuses could help improve retention. Addressing the atmosphere within a warehouse, ensuring the work environment is not hostile, and focusing on providing a clean, safe workplace can also make workers more inclined to stay.

Rely on Flex Labor to Fill the Gaps Left by High Turnover Rates

While these steps could help fight back against high turnover rates, substantial and lasting improvements could take some time to implement. In the meantime, your facility could make use of flex workers to ensure that your benchmarks are met even when turnover is high. To learn how HapiGig could help you connect with the skilled and vetted flex workers your warehouse needs, contact us right away.

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