Hard physical labor, numbingly boring tasks, continuous deadlines warehouse workers face down stress every day. The challenge is figuring out how to keep stress from flaring up into burnout.
For the average distribution center worker, it's another day, another hefty dose of job stress. You walk in the door and your brain shifts right into overload—trailers have arrived early and the unloading's already behind schedule. Or you're assailed by a supervisor reminding you that pick times will be closely monitored today because of an unusually tight schedule. Or the trucks are late and there's nothing to do but wait for the inevitable crunch. Or you're ordered to cover for someone who's out with the flu but can't get anyone to tell you precisely what you're supposed to do.
And even if you did know exactly what you were supposed to be doing, all too often you can't count on getting the tools and help you need. Two of the four lift trucks are out of commission. Cramped aisles make it impossible to move inventory and equipment around. Vacancies and absenteeism have left the facility pitifully understaffed. You're feeling the strain—both physical and emotional—and nobody seems to care.
No wonder between 20 and 75 percent of all warehouse workers leave their jobs within one year of their hire date. Though some learn to tolerate the stress, huge numbers succumb to the work fatigue. Those burned-out employees eventually respond in one of two ways: they try to wrest more control over the situation or they leave (think fight or flight).
Filling the vacancies can be both difficult and expensive—the cost of replacing a single employee is estimated to be in the thousands of dollars. Alarmed by the high turn over, distribution center managers from Klickitat to Kittery are looking for ways to fight stress and hold on to their workers.
But to fight stress, you have to understand what causes it and who's most affected. For that, we went right to the source, surveying 667 workers in seven distribution centers (see sidebar for a look at the respondent pool). Specifically, we wanted to know the following: How bad is the stress and burnout? Do stress and burnout levels vary based upon employee job tenure, overall job experience in the industry, work shift (early/day/late), or job status (full-time, part-time or temporary)? And most important of all, what can be done about it?
As bad as it gets?
To get an idea of how much stress DC workers are under, we asked survey participants seven questions related to pressures of the workplace— how often they had "been upset because of something that happened at work," for example, or how often they "found that they could not cope with all of the things they had to do." Stress levels were measured on a scale of 1 to 7—1 = never and 7 = every day. Researchers then averaged the numeric scores for each employee's answers to compute an overall stress score for that individual.
We conducted the "burnout" survey in much the same way. Participating employees were asked nine questions such as how often they "felt used up at the end of the workday," "failed to make an effective contribution to the organization," and "felt emotionally drained from [their] work." Responses were again scaled from 1 to 7, with 1 = never and 7 = every day. The respondents' answers to the nine questions were summed to create an overall burnout score for each employee.
Overall, respondents reported feeling a moderate level of stress— 3.53 on a scale of 1 to 7, indicating that they typically experienced stress a few times per month.Most of the stress appeared to derive from what we termed demand related factors—inability to control their immediate work environment or to manage unexpected events. Workers seemed to take problems caused by a lack of resources much more in stride.
The overall burnout score didn't lag too far behind. Workers reported experiencing burnout symptoms on a regular basis (3.43 overall on a scale of 1 to 7), as well. Burnout among distribution center employees most often takes the form of emotional exhaustion—the statement "I'm emotionally drained by my work" resonated loudest among workers. Survey respondents also reported that they felt inadequate or detached on a pretty regular basis.
Feeling the burn(out)
But not every stressed worker falls victim to burnout. Some segments of the workforce continue to function normally even as their colleagues succumb to the stress. What accounts for the differences? Does job tenure, for example, affect a worker's susceptibility? How about work experience, work shift (daytime or nighttime) or job status (full time, part time or temporary)? In hopes of identifying factors that increase the risk,the research team conducted four separate analysis of variance (ANOVA) tests. What follows is a summary of the sometimes surprising results:
Job tenure. Researchers divided the respondents into three groups based on tenure in the current job—less than two years, two to five years, and more than five years. Though you might ex pect the trend line to move steadily in one direction (say, up), the results actually showed that job stress decreased significantly after two years of employment—from 4.44 for those who had been on the job less than two years to 2.78 for those with two to five years' tenure. However, as DC employees pass their five-year anniversary with the same employer, job stress levels climb again.
By contrast, burnout steadily decreased overtime. Workers with less than two years' tenure reported significantly higher levels of burnout symptoms (4.64) than those with two to five years on the job (3.66) or those with more than five years (2.21).
Why does the pattern change so abruptly at the five-year mark, with burnout levels continuing to drop while stress re-escalates? Stress may rise at that point because of added responsibility or deteriorating relationships with co-workers. As for declining burnout levels, it may be that employees develop coping mechanisms over time—they learn to handle stress or they simply decide to live with it. It's also possible that as time passes, these employees begin to feel "institutionalized"—that is, they begin to feel that they're an integral part of the organization (or the work group) and spend less time worrying about being fired, reprimanded or demoted. But it's more likely that the burnout drops over time simply because many quit. The problem (stress) is still there, but burnout is lower because some of the employees have gone.
Work experience. Does overall distribution center work experience (all experience—not just time on the current job) influence job stress and/or burnout? To find out, researchers divided respondents into three groups based on their total years of distribution center experience: workers with less than five years' experience, with five to 10 years of experience, and with over 10 years' experience, and compared their total stress and burnout scores.
What they found was that up to the 10-year mark, job stress and burnout levels remained relatively static. However, after the 10th year of experience, burnout levels declined significantly (to 3.05 from 3.78), while job stress levels rose significantly (to 4.02 from 3.33). The increase in stress later in the career may be caused by physical strain related to aging, increased stress related to increased responsibility or the inability to cope with changes in the work environment. The decline in burnout later in the career may indicate increased ability to manage job stress or simply that some burned-out employees leave.
Work shift. Are some job shifts more stressful than others? It looks that way. Though workers assigned to the early shift (basically the traditional 8-to-5 workday) and the overnight shift (any shift that begins after 5 p.m. and lasts until after midnight) reported moderate levels of both job stress and burnout, employees working the mid-shift (any shift that begins in the afternoon and lasts late into the evening) reported significantly higher levels of job stress and burnout.
There are a number of possible reasons. Traditional shift workers can usually count on their work day following a ro utine—when they arrive in the morning, they know what tasks they can expect —picking, packing, loading or unloading. Stress arising from unexpected events tends to be minimal. Early-shift workers can also expect to work under the guidance of a full supervisory staff and with a full complement of co-workers for help. Overnight shift workers also reported relatively low stress levels—albeit for very different reasons. DCs often hire these workers to create work teams that come in very late or very early to perform a specialized task. The uniqueness of the task, smaller workforce and unusual hours can create camaraderie among workers that helps to reduce stress.
Mid-shift workers, by contrast, often come in while the early-shift workers are still around but stay long after they've left. Fewer managerial personnel are available for guidance. This crew often experiences volatility in workrelated demand—they may be assigned to complete whatever tasks were not finished by the early shift in addition to their regular responsibilities. There generally are fewer midshift workers than early-shift workers. As a result, they're much more likely to be randomly assigned to unfamiliar tasks or given responsibilities that they consider someone else's jo b. These factors, in addition to the added st ress o f working hours that are generally reserved for life outside the workplace,may explain the peaks in both job stress and burnout relative to early and overnight shifts.
Employment status. Is it more stressful to be a full-time worker than a part-time employee? Or a temporary/summer worker than either of the others? Though we found only minor differences in job stress and burnout between the full-time and part-time distribution center workers, temporary/summer workers reported much higher stress levels than the other two groups. Temps are often given a variety of unrelated short-term assign m ents to cover immediate demand or replace workers who are on leave. The wide variety of tasks performed and/or the uncertainty of expectations related to daily tasks may create stress.
Though stressed, temporary/summer workers are much less likely to experience burnout than regular full- or parttime employees. That's not surprising. They're aware that their positions, and therefore their stresses, aren't permanent. They may be miserable, but they know there's an end in sight.
Redress for stress
Understanding the reasons behind workplace stress is one thing; doing something about it is another. Generally the solutions involve some combination of psychological rewards, training, raising self esteem and more sensitive management.
What can managers do? Our study didn't address this question, but based upon the current research and our professional work experience, we believe workplace stress can be greatly reduced if managers provide the following:
More training. Improved skills can lead to a greater sense of accomplishment. Plus, the right type of training will better prepare workers to handle unexpected events.
More control over the work environment. Delegating responsibility to workers cuts down on their stress. Empower workers to develop best practices and/or change their job designs.
Clear and precise definitions of job responsibilities. Identify the scope of the job and the expectations. Specify exactly what performance measures will be used.
Relief from boredom. You can ease the tedium by instituting cross-training, varying their tasks and responsibilities or instituting periodic job rotations.
Recognition of individual accomplishments. Don't stint on feedback and praise. And let your stars shine: Post weekly performance measures in the break room, including employee names, goals and achieved performance.
A sense of place. Workers want to know how their efforts contribute to the larger goals. Emphasize that work is a team effort. Encourage team meetings and mentoring.
R&R. Organize recreational activities outside of work—a softball team or a bowling league. Not everybody's an athlete, of course. But then again, laughter can be a great stress reliever.
study group
The survey data, of course, don't reveal how the largely male respondents felt about filling out a multipart questionnaire that focused on their feelings. Nonetheless, a total of 667 employees participated in the study, which was conducted in seven distribution centers in Georgia, Oklahoma, Pennsylvania and Texas. In exchange for their participation, employees, who completed their questionnaires during their coffee breaks or lunch periods, had a chance to enter a cash lottery drawing.
The respondent pool's demographic profile is fairly typical for the warehousing industry. About three-quarters of the respondents (74 percent) were male. Ages ranged from 18 to 65, with most (78 percent) participants falling between 25 and 44. The respondents were a racially diverse group—43 percent white, 19 percent black, 13 percent Hispanic, 11 percent Asian—and fairly well educated: Four out of five participants had at least a high school diploma, and nearly one-third (29 percent) had attended at least some college.
The Florida logistics technology startup OneRail has raised $42 million in venture backing to lift the fulfillment software company its next level of growth, the company said today.
The “series C” round was led by Los Angeles-based Aliment Capital, with additional participation from new investors eGateway Capital and Florida Opportunity Fund, as well as current investors Arsenal Growth Equity, Piva Capital, Bullpen Capital, Las Olas Venture Capital, Chicago Ventures, Gaingels and Mana Ventures. According to OneRail, the funding comes amidst a challenging funding environment where venture capital funding in the logistics sector has seen a 90% decline over the past two years.
The latest infusion follows the firm’s $33 million Series B round in 2022, and its move earlier in 2024 to acquire the Vancouver, Canada-based company Orderbot, a provider of enterprise inventory and distributed order management (DOM) software.
Orlando-based OneRail says its omnichannel fulfillment solution pairs its OmniPoint cloud software with a logistics as a service platform and a real-time, connected network of 12 million drivers. The firm says that its OmniPointsoftware automates fulfillment orchestration and last mile logistics, intelligently selecting the right place to fulfill inventory from, the right shipping mode, and the right carrier to optimize every order.
“This new funding round enables us to deepen our decision logic upstream in the order process to help solve some of the acute challenges facing retailers and wholesalers, such as order sourcing logic defaulting to closest store to customer to fulfill inventory from, which leads to split orders, out-of-stocks, or worse, cancelled orders,” OneRail Founder and CEO Bill Catania said in a release. “OneRail has revolutionized that process with a dynamic fulfillment solution that quickly finds available inventory in full, from an array of stores or warehouses within a localized radius of the customer, to meet the delivery promise, which ultimately transforms the end-customer experience.”
Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.
Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.
The study showed that for five consecutive years, at least four out of five respondents have reported using at least one form of fleet technology, said Atlanta-based Verizon Connect, which provides fleet and mobile workforce management software platforms, embedded OEM hardware, and a connected vehicle device called Hum by Verizon.
The most commonly used of those technologies is GPS fleet tracking, with 69% of fleets across industries reporting its use, the survey showed. Of those users, 72% find it extremely or very beneficial, citing improved efficiency (62%) and a reduction in harsh driving/speeding events (49%).
Respondents also reported a focus on safety, with 57% of respondents citing improved driver safety as a key benefit of GPS fleet tracking. And 68% of users said in-cab video solutions are extremely or very beneficial. Together, those technologies help reduce distracted driving incidents, improve coaching sessions, and help reduce accident and insurance costs, Verizon Connect said.
Looking at the future, fleet management software is evolving to meet emerging challenges, including sustainability and electrification, the company said. "The findings from this year's Fleet Technology Trends Report highlight a strong commitment across industries to embracing fleet technology, with GPS tracking and in-cab video solutions consistently delivering measurable results,” Peter Mitchell, General Manager, Verizon Connect, said in a release. “As fleets face rising costs and increased regulatory pressures, these technologies are proving to be indispensable in helping organizations optimize their operations, reduce expenses, and navigate the path toward a more sustainable future.”
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.