Fulfillment Centers Look to Mitigate the Impact of Employee Turnover

 


Warehouse employment is the single most expensive component of a fulfillment process. If your logistics partner does not take actions to decrease warehouse turnover, this cost can soon spiral out of hand. Consider that replacing a single warehouse employee might cost up to $10,000. Given the high turnover rate in the warehousing industry, those expenses will soon escalate into the millions for a 3PL with many fulfillment facilities. One of the primary advantages of employing a fulfillment 3PL is the transfer of responsibilities for labor management. However, your fulfillment supplier can only absorb so much of its labor costs before passing the rest on to you. So, to avoid having your rates negatively impacted by bad labor practices, inquire with your fulfillment partner about what they are doing to enhance staff retention at the warehouse.

Moreover, if a 3PL provider wants to optimize employee turnover, there are few things that they can consider doing. 

1. Improve Applicant Sourcing 

If you want to attract the best staff and decrease employee turnover, start by optimizing your recruiting funnel where you source applications. 

2. Improve The Selection of Your Workforce

Even in a tight labor market, it is impractical to hire everyone who applies. It's not going to end nicely. Just because you're seeking applications for entry-level positions doesn't mean that everyone who applies will be qualified. If you don't hire the best people for the job, you will have many turnovers.

3. Controlling Candidate Expectations 

Misaligned expectations are a major factor in excessive employee turnover. Because entry-level employment has minimal barriers to entry, candidates may quickly resign and find a new job in a different low-complexity position if they do not like what they see as a new employee. It can happen before their first day in some situations, resulting in a no-show.

AWL India can ensure an improved employee turnover by adopting multiple ways and promises smooth supply chain management through synchronized warehousing operations.

 

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