{"id":43501,"date":"2018-02-08T18:19:00","date_gmt":"2018-02-08T18:19:00","guid":{"rendered":"http:\/\/sticky-highjinx.flywheelsites.com\/?p=43501"},"modified":"2025-03-03T06:42:15","modified_gmt":"2025-03-03T11:42:15","slug":"winning-the-warehouse-labor-war","status":"publish","type":"post","link":"https:\/\/envistacorp.com\/en-au\/2018\/02\/08\/winning-the-warehouse-labor-war\/","title":{"rendered":"Using Incentives to Retain Your Warehouse Associates"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>\n<p>Companies are fighting a war of attrition when it comes to warehouse labor. Warehousing jobs are among the top industry for workers to leave. The Bureau of Labour Statistics&nbsp;indicates that warehousing jobs experienced a year-over-year uptick in the number of \u2018quits\u2019 (versus layoffs, or terminations).<\/p>\n\n\n\n<p>Last year, there were 25,000 more \u2018quits\u2019 in the industry. In some locations, companies have to retrain 50+% of their workforce each year to compensate for \u2018quits.\u2019 Often times, the main culprit of these quits is the 500 pound gorilla in the supply chain room: Amazon. The retailing giant can afford to pay their workers slightly more, and in this highly competitive industry, an unhappy worker can easily change jobs for cents per hour.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-cost-of-warehouse-turnover\">Cost of Warehouse Turnover<\/h3>\n\n\n\n<p>Warehousing jobs are expensive to replace, too. The cost of turnover for warehouse workers can&nbsp;reach 25%&nbsp;of salary. Salary.com data pinpoints the average salary for warehouse workers at $28,000.00. This&nbsp;would mean employers spend about $7,000 to replace every warehouse worker that quits. In a warehouse setting, the majority of cost is the labour force required to run the facility. Labour expense is typically between 20% and 70% of overall organisation costs. With labour costs taking up a significant chunk of the budget, companies should avoid compounding those costs by any means necessary.<\/p>\n\n\n\n<p>&nbsp;The many costs associated with replacing a warehouse worker pile up fast:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Departure costs (i.e., exit interviews, severance pay, unemployment taxes)<\/li>\n\n\n\n<li>Supplementary costs for overtime to replace lost workers or temporary staffing<\/li>\n\n\n\n<li>Additional advertising, recruiting, and screening for new employees<\/li>\n\n\n\n<li>Lost productivity by employees who know they\u2019ll be leaving<\/li>\n\n\n\n<li>Training new employees and reduced productivity while they are onboarded<\/li>\n\n\n\n<li>And many more<\/li>\n<\/ul>\n\n\n\n<p>Aside from the cost of replacing and retaining a warehouse worker, lately it\u2019s just been hard to find replacements. Right now, the unemployment rate in the United States is around 4.1%. At the same time, many distributors and retailers are opening more warehouses to meet customer demand. You can see how this becomes quite an issue for companies.<\/p>\n\n\n\t\t<div data-elementor-type=\"page\" data-elementor-id=\"53364\" class=\"elementor elementor-53364\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-top-section elementor-element elementor-element-ed8b4ae elementor-section-stretched elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-eae-slider=\"17293\" data-id=\"ed8b4ae\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;stretch_section&quot;:&quot;section-stretched&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"aux-parallax-section has_eae_slider elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-86206ef\" data-eae-slider=\"29154\" data-id=\"86206ef\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"has_eae_slider elementor-section elementor-inner-section elementor-element elementor-element-d0258b7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-eae-slider=\"2879\" data-id=\"d0258b7\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"aux-parallax-section has_eae_slider elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-d2bba90\" data-eae-slider=\"5595\" data-id=\"d2bba90\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3a822a7 elementor-grid-1 elementor-posts--align-left elementor-grid-tablet-1 elementor-grid-mobile-1 elementor-posts--thumbnail-top elementor-posts__hover-gradient elementor-widget elementor-widget-posts\" data-id=\"3a822a7\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;cards_columns&quot;:&quot;1&quot;,&quot;cards_row_gap&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:0,&quot;sizes&quot;:[]},&quot;cards_columns_tablet&quot;:&quot;1&quot;,&quot;cards_columns_mobile&quot;:&quot;1&quot;,&quot;cards_row_gap_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;cards_row_gap_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"posts.cards\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-posts-container elementor-posts elementor-posts--skin-cards elementor-grid\" role=\"list\">\n\t\t\t\t<article class=\"elementor-post elementor-grid-item post-105714 post type-post status-publish format-standard has-post-thumbnail hentry category-white-paper tag-distribution-center tag-slotting tag-supply-chain\" role=\"listitem\">\n\t\t\t<div class=\"elementor-post__card\">\n\t\t\t\t<a class=\"elementor-post__thumbnail__link\" href=\"https:\/\/web.envistacorp.com\/successful-warehouse-slotting-roi\" tabindex=\"-1\" ><div class=\"elementor-post__thumbnail\"><img fetchpriority=\"high\" decoding=\"async\" width=\"768\" height=\"667\" src=\"https:\/\/envistacorp.com\/en-au\/wp-content\/uploads\/sites\/4\/2023\/08\/shutterstock_456680302-768x667.jpg\" class=\"attachment-medium_large size-medium_large wp-image-105716\" alt=\"Large warehouse interior with tall blue and orange metal shelving racks stacked with cardboard boxes and wrapped pallets on both sides of a wide, polished concrete aisle. No people are visible.\" \/><\/div><\/a>\n\t\t\t\t<div class=\"elementor-post__text\">\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/article>\n\t\t\t\t<\/div>\n\t\t\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"aux-parallax-section has_eae_slider elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-fcbc862\" data-eae-slider=\"32336\" data-id=\"fcbc862\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2ca739d elementor-grid-1 elementor-grid-tablet-1 elementor-grid-mobile-1 elementor-posts--thumbnail-top elementor-posts__hover-gradient elementor-widget elementor-widget-posts\" data-id=\"2ca739d\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;cards_columns&quot;:&quot;1&quot;,&quot;cards_row_gap&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:0,&quot;sizes&quot;:[]},&quot;cards_columns_tablet&quot;:&quot;1&quot;,&quot;cards_columns_mobile&quot;:&quot;1&quot;,&quot;cards_row_gap_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;cards_row_gap_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]}}\" data-widget_type=\"posts.cards\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-posts-container elementor-posts elementor-posts--skin-cards elementor-grid\" role=\"list\">\n\t\t\t\t<article class=\"elementor-post elementor-grid-item post-105714 post type-post status-publish format-standard has-post-thumbnail hentry category-white-paper tag-distribution-center tag-slotting tag-supply-chain\" role=\"listitem\">\n\t\t\t<div class=\"elementor-post__card\">\n\t\t\t\t<a class=\"elementor-post__thumbnail__link\" href=\"https:\/\/web.envistacorp.com\/successful-warehouse-slotting-roi\" tabindex=\"-1\" target=\"_blank\"><div class=\"elementor-post__thumbnail\"><img decoding=\"async\" width=\"300\" height=\"300\" src=\"https:\/\/envistacorp.com\/en-au\/wp-content\/uploads\/sites\/4\/2023\/08\/shutterstock_456680302-300x300.jpg\" class=\"attachment-medium size-medium wp-image-105716\" alt=\"Large warehouse interior with tall blue and orange metal shelving racks stacked with cardboard boxes and wrapped pallets on both sides of a wide, polished concrete aisle. No people are visible.\" srcset=\"https:\/\/envistacorp.com\/en-au\/wp-content\/uploads\/sites\/4\/2023\/08\/shutterstock_456680302-300x300.jpg 300w, https:\/\/envistacorp.com\/en-au\/wp-content\/uploads\/sites\/4\/2023\/08\/shutterstock_456680302-150x150.jpg 150w, https:\/\/envistacorp.com\/en-au\/wp-content\/uploads\/sites\/4\/2023\/08\/shutterstock_456680302-60x60.jpg 60w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/div><\/a>\n\t\t\t\t<div class=\"elementor-post__badge\">White Paper<\/div>\n\t\t\t\t<div class=\"elementor-post__text\">\n\t\t\t\t<h3 class=\"elementor-post__title\">\n\t\t\t<a href=\"https:\/\/web.envistacorp.com\/successful-warehouse-slotting-roi\" target=&quot;_blank&quot;>\n\t\t\t\tIncrease ROI Through Successful Warehouse Slotting\t\t\t<\/a>\n\t\t<\/h3>\n\t\t\t\t<div class=\"elementor-post__excerpt\">\n\t\t\t<p>A well-thought-out slotting strategy also enables businesses to minimize wasted space and maximize storage capacity within the warehouse. Increase ROI using the right tools, strategy and management plan with successful warehouse slotting.<\/p>\n\t\t<\/div>\n\t\t\n\t\t<a class=\"elementor-post__read-more\" href=\"https:\/\/web.envistacorp.com\/successful-warehouse-slotting-roi\" aria-label=\"Read more about Increase ROI Through Successful Warehouse Slotting\" tabindex=\"-1\" target=\"_blank\">\n\t\t\tDownload\t\t<\/a>\n\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/article>\n\t\t\t\t<\/div>\n\t\t\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-to-motivate-and-retain-your-workforce-using-incentives\">How to Motivate and Retain Your Workforce Using Incentives<\/h3>\n\n\n\n<p>How can warehouses overcome these obstacles and improve <a href=\"https:\/\/envistacorp.com\/consulting\/distribution-warehousing\/\">warehouse optimization<\/a>? We would suggest properly <a href=\"https:\/\/envistacorp.com\/blog\/implementing-a-warehouse-incentive-program\/\">motivating your workforce by using incentives<\/a> and incentive-based pay. Incentive pay programs have proven to be a popular option for improving warehouse productivity and retention by as much as 15-30 percent. Other incentive programme benefits include increased job satisfaction and improved employee morale. These benefits also inherently lead to reduced employee turnover.<\/p>\n\n\n\n<p>The benefit to an employee incentive programme is that outside of the need to explain it to associates and ability to document it, the options are nearly limitless. Individual incentives have been found to be the most effective type of award in a distribution environment, as the employees control their own levels of performance and their potential reward. Team and reflective incentives should be considered when individual performance cannot be measured. Reflective incentives reward one group for their contributions toward the performance of another group.<\/p>\n\n\n\n<p>Here are three types of incentive programs to consider:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Monetary incentives<\/strong> tend to be the most impactful. Additional take-home pay is always a powerful motivator for long-term successful programs.<\/li>\n\n\n\n<li><strong>Time off<\/strong> can be successful, but it often leads to managerial challenges, such as seniority issues in the workforce, potential overtime issues, and customer constraints.<\/li>\n\n\n\n<li><strong>Awards<\/strong> such as gift cards, event tickets, or discount coupons, can have a positive, short-term impact, but generally lose their appeal after 3-6 months. Starting with awards and moving to a monetary incentive is a great combination that is easy to implement and allows for the company to determine long-term costs and benefits before committing to a monetary-based incentive.<\/li>\n<\/ul>\n\n\n\n<p>With labour being such a dominant force on your company\u2019s bottom line, any increase in productivity or retention will go a long way toward making a positive impact. Check back next week for some tips on how to successfully <a href=\"\/blog\/10-tips-for-successful-incentive-plans\" rel=\"noreferrer noopener\" target=\"_blank\">implement an incentive plan<\/a> for your employees.<\/p>\n\n\n\n<p>In the meantime, check out your can drive labour gains with enVista\u2019s <a href=\"https:\/\/envistacorp.com\/consulting\/distribution-warehousing\/workforce-management\/\" target=\"_blank\" rel=\"noreferrer noopener\">Workforce Management<\/a> practice.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How to improve employee productivity and retention through labour incentive programs.<\/p>\n","protected":false},"author":22,"featured_media":43504,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_searchwp_excluded":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[3475],"tags":[3527,3509,3931],"class_list":["post-43501","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-labor-management-system","tag-supply-chain","tag-warehouse"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Winning the Warehouse Labour War: Key Strategies - enVista<\/title>\n<meta name=\"description\" content=\"How to improve employee productivity and retention through labour incentive programs.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/envistacorp.com\/en-au\/2018\/02\/08\/winning-the-warehouse-labor-war\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Winning the Warehouse Labour War: Key Strategies - enVista\" \/>\n<meta property=\"og:description\" content=\"How to improve employee productivity and retention through labour incentive programs.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/envistacorp.com\/en-au\/2018\/02\/08\/winning-the-warehouse-labor-war\/\" \/>\n<meta property=\"og:site_name\" content=\"enVista Australia\" \/>\n<meta property=\"article:published_time\" content=\"2018-02-08T18:19:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-03T11:42:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/envistacorp.com\/en-au\/wp-content\/uploads\/sites\/4\/2021\/06\/warehouse-labor-war-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"533\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"enVista Marketing\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enVista Marketing\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Winning the Warehouse Labour War: Key Strategies - 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