Improving recruitment and retention is quite a tough nut to crack. According to Transport Topics, there is an ongoing labor shortage in trucking. The supply chain is the sector most affected. This means that warehousing, fulfillment, and distribution centers have a big problem. Things got even worse when Covid-19 hit. There was a move towards e-commerce. At the same time, there were many resignations during that period.
At the moment, there is a great effort to see to it that there is more hiring. At the same time, there is a great effort to retain employees. Automation is also on the table to complement the need for more employees. Any labor shortages cause a massive disruption in the supply chain. In so doing, customers' needs will not be fully taken care of. There will be more orders than the companies can handle. Such an imbalance is detrimental to the reputation of any company. Service Level Agreements will not be fulfilled as needed.
Turnover Rates
Most companies have been recovering since the labor shortage. Turnover has been on the decline for the past few years. The decline is due to several factors. The market has been changing, reducing turnover. Employees are also happier, as most of them are now employed permanently. Also, most employees feel like the work environment is now better. Most employees are now more than willing to stick to their jobs.
Compensation
Pay rates have not increased as much as in the recent past. The positive thing is that employees value gathering experience just as much as their pay. This helps with retaining them in their jobs. It does not mean that they don't deserve more. It is a question of balance. The wages have gone up to $24.70 compared to 2019, when they stood at $20.33 for an average warehouse worker.
Recruitment
The effort put into recruitment always depends on the need for the same. Sometimes there is more need, and sometimes there is less need. It is mainly affected on a seasonal basis. Companies are using digital media such as LinkedIn to look for employees. They also depend on traditional word of mouth to market themselves. Some have even gone as far as using recruitment tools. As companies also grow, there is a continuous need for more employees. Companies must remain open and dynamic to handle the needs as they arise.
Retention
Retention has recently been the most challenging part for most companies. Most companies have now shifted their focus to retention rather than recruitment. Retention means that you get to keep your most important resources with your company. As they gain experience over the years, they keep putting the company on the map. Training and other modes of motivation ensure that these employees don't feel the need to leave the company, but rather, they grow with the company.
Automation
Automation is now the hottest trend. It has come with lots of advantages. It makes work more efficient with fewer human errors. It also frees up as much time as possible for the employees to engage in other more meaningful tasks. It also comes with different solutions, such as warehouse management, that help track orders for faster deliveries and better inventory management. Automation has not come to take the place of human labor. It has come to complement their work and ensure operational efficiency. Where there is operational efficiency, there also is financial efficiency. Automation also means workers don't need to waste time on repetitive tasks. They can now fully focus on better roles at the company.
The Future
Experts believe that the supply chain industry will keep growing, as will 3PLs. Automation will also increase, and technology will become even more important. However, amidst all this evolution, human task forces will remain vital. A combination of automation and humans will push the industry even further. The future looks bright.
