The Advantages of Using a Work Agency in Logistics

These days, it can be challenging to hire and keep workers in logistics positions such as warehouse workers, forklift operators, packers, etc. There’s a high demand for logistics workers at all levels, but the lower level jobs can be more challenging to fill.

Current & Future Logistics Job Trends

With higher demand, warehouses have a harder time attracting and keeping workers. The current trends help to predict the future hiring “games” companies will face. Today’s logistics workers are in high demand; demand is so high that logistics companies are offering higher wages and using other means to attract workers from their competitors. Recruitment and retention have become an expensive nightmare for any HR department.

According to Supplychaindive, warehouse services are expected to grow over the next 6 years at a compound annual rate of 6%. The takeaway is that warehouse logistics jobs are only going to be in higher demand than ever. In the future, recruitment and retention will only become more challenging. Why is it so difficult to hire and retain logistics workers?

What are the Logistics Recruitment and Retention Challenges?

There are several challenges when it comes to recruiting and retaining workers for your logistics company:

• Manual labor: warehouse work is hard, physical labor, which is a hard sell when it comes to hiring workers.
• Concentration of jobs: logistics jobs are often located in major cities, which are hubs in the supply chain. With so many logistics companies concentrated in only a few hubs, you face a limited number of available workers and you’ll have to offer even better salaries and perks for prospective workers.
• Low wages: warehouse workers often face low wages. So, when they get the chance, workers will go where higher salaries are offered.
• Seasonal work: the need for workers is often higher at certain times of the year, such as holidays. Not only do you have to do normal hires to replace workers who have quit or been fired, you also have to spend time and money to search and hire new workers.
• Reliable and safety-conscious workers are hard to find: this is a problem, especially when it comes to seasonal work. Finding the right people to fill the jobs is time-consuming process.
• High turnover rates: hard labor, poor workplace culture and low wages lead to higher turnover rates, making it necessary to spend money and time to find replacements on a more or less regular basis. This becomes expensive over time, especially if the new hire isn’t a good fit for the job and you have to start the search over again.

All of this leads to ongoing recruitment efforts to find the best candidates for your open positions. What’s the average cost of worker turnover and how does this effect your company?

The Cost of Worker Turnover

In addition to the challenges above, your company faces considerable costs when it comes to replacing a worker. According to Kane is Able, the average cost of warehouse worker turnover is about $7,000 per employee, which is about 25% of the average salary of a warehouse worker who makes $28,000 a year. But Kane says this is just the tip of the iceberg. The actual costs involved may be about 150% of a worker’s salary.

Just what basic costs are involved in worker turnover?

• Lost productivity: when the position is left unfilled and/or you have to train other workers to do the job until you hire someone.
• Cost of recruitment: additional costs involved may include advertising the position, interviewing, screening prospective hires, drug tests, background checks, etc.
• Cost of onboarding and training new worker: include orientation training, uniforms, and more.

How do you overcome these challenges to recruit and retain logistics workers for your warehouse? This is where work agencies can help you find and retain the best workers.

Why to use Work agency?

There are many benefits to using a work agency to hire workers for your logistics company.

1) Work agencies save you time: the focus of a work agency is finding the right worker for your company’s available job opening. Work agencies will deal with all of the recruitment process—from screening resumes and applications, to scheduling interviews and more.

2) Find the right candidates: staffing agencies work not just to fill the position—they work to find the right candidates to fill the job. Your work agency will get to know you and the job requirements. Then they’ll work to find the right candidates that not only fit the position, but who fit in with your company, too. You can count on the candidates going through a rigorous vetting process before you even interview them. Work agencies check references and more. You’ll only see those candidates who are best for the job.

3) Quick replacements: work agencies generally have a pool of vetted candidates to draw from. This makes it easier to find a replacement if you need one on short notice.

4) Agencies may offer a guarantee period: many staffing agencies offer guarantee periods. If the new hire isn’t working out, the staffing agency will start the search over again and you don’t have to pay the agency fees. The key here is to use the guarantee period as a probationary period. If the new hire doesn’t work out during the guarantee period, let your staffing agency know—you’ll save money. Not only that, but you and your work agency will learn from the experience and have a better feel for what to look for in the next new hire.

5) Hire permanent and/or seasonal workers easily: work agencies can hire permanent or even seasonal workers for your company. As noted in point #3, agencies generally have a pool of vetted workers available, including candidates who prefer permanent or seasonal work. This makes it fast and easy to find employees as and when you need them—even for seasonal work.

Summing It Up

As you can see, there are various benefits to hiring a work agency to help fill your company’s logistics positions. A work agency can save you time and money, help you find the best candidates for the job, and may be able to quickly fill an unexpected or seasonal opening, and more.

Logistics workers are in high demand, with growth for these positions predicted to grow over the next few years. Finding the right candidates for your company’s jobs will only become more time consuming, causing a loss in money, productivity and more. Put an end to the merry-go-round of hiring and collaborate with a work agency to quickly find the right people to fill your company’s logistics positions.