During the just-concluded holiday season, retailers struggled to mitigate labor and supply chain shortages. The holiday shopping rush came even earlier in 2021, with half of U.S. shoppers purchasing all of their gifts prior to Black Friday and Cyber Monday. As a result, retailers were confronted by delays in inventory and shipping, causing customers to seek purchases elsewhere.
Over the past 18 months, labor shortages within the supply chain industry have become a growing concern for a multitude of reasons. In July, 2021, the number of job openings within the warehouse industry hit a record high, with nearly 490,000 open positions. A major driving factor was an overwhelming sense of fatigue weighing on workers. These jobs are taxing, labor intensive and require employees to work long and oftentimes inconsistent hours. With pandemic fatigue in full effect, along with health concerns and large shipments that are drastically increasing workloads, retailers are finding it difficult to maintain employee retention and attract potential new hires.
Looking ahead to the next peak shopping season, here are some key steps that retailers can take to help them better prepare their teams.
Uproot traditional hiring practices for the modern workforce. Hiring within the supply chain should be a priority for retailers. Companies need to start hiring workers earlier and much faster, especially as supply chain demands grow ahead of the holiday shopping surge. It’s important not only to have more hands on deck, but to ensure that everyone is properly trained and onboarded before things gets busy.
Because of these time constraints and shortages, it’s crucial that new hires are onboarded into warehouse jobs as quickly as possible. By automating the hiring process, interviews can take place in a single day instead of weeks. Retailers should provide pre-recorded interview questions, so that candidates can dictate and share their responses digitally. This gives candidates the flexibility to take part in interviews immediately, ultimately streamlining the process for all involved.
In addition to shifting to a digital hiring platform, employers must make sure to be quick and proactive throughout their interviewing and scheduling processes, in order to expedite both hiring and onboarding.
Prioritize clear and concise internal communication regarding safety. Warehouse managers need to communicate clear and concise COVID-19 safety protocols prior to hiring, to ensure that potential candidates feel as comfortable as possible. (It’s likely that health concerns surrounding the pandemic contributed to the resignation of so many supply chain workers.) Companies can demonstrate to their employees that they are actively taking the necessary precautions by ensuring that everyone has the proper personal protective equipment to utilize during their shifts, access to sanitizing stations, and regular temperature checks within the warehouse. Additionally, there should be a written action plan to circulate in the possible event of COVID-19 exposure. As vaccines become widely accessible, retailers anticipate that more people will feel comfortable to resume working in an in-person setting, yet it remains crucial for companies to show that they’re prioritizing the creation of a work environment with the proper protocols in place, to ensure the utmost safety for employees and ultimately build lasting trust.
Reward performance and invest back in your team. Lastly, companies need to demonstrate that they’re willing to invest in their employees. They should offer competitive wages and benefits to create an incentive structure for present and future workers. A company that values its employees and communicates clearly and efficiently internally will have significantly better retention rates. Workers want to be a part of an organization that values their growth and education, and recognizes their significant contributions to the company.
To avoid a stagnant work environment that lacks individual growth and productivity, employers can offer workers more opportunities to expand their education and skill sets. Relationship building and clear communication are two of the most important things that management can do to create a steady and productive workforce. It’s vital that employees feel that their voices are being heard, and their work recognized.
It’s forecasted that these shortages will continue to impact supply chains into the new year. Yet by taking key steps and putting strategic measures into place, employers can begin to combat these delays ahead of the busiest shopping season of the year. It’s crucial to protect the workforce and future-proof supply chains by placing labor at the forefront.
RSS
