There’s a good reason why it’s so hard to fill warehousing jobs. And it can be summed up by a story I heard at the recent ProMat show about one executive’s experience on the warehouse floor. The executive had gone to a distribution center to help program a robot for use in the DC’s fulfillment operations. To better understand what the robot was about to do, he decided to step into the job of pulling exceptions from the high-speed sortation line. When asked how long he lasted, he said, “Twenty to 30 minutes!” He went on to explain that after a few minutes on the floor, “my feet, legs, and back hurt; I felt a headache start to take hold; and nausea hit. … It was an eye-opening experience. No human can do this for an extended period of time.”
So it didn’t come as a surprise to learn that MHI’s "2023 Annual Industry Report" identified workforce issues—hiring and retaining qualified workers—as the number one supply chain challenge facing companies today. That point was further reinforced as I navigated the crowded aisles of Chicago’s McCormick Place: Almost everyone I spoke to brought up labor during our conversations.
The fact that many warehouse jobs are physically taxing is a big reason why robotics were front and center at the show. Companies are investing in the technology not only to boost throughput and efficiency, but also to address the labor shortage and provide a much more worker-friendly environment for their current employees.
But automation alone will not solve all the labor shortage issues. And neither will higher pay. According to the U.S. Bureau of Labor Statistics, hourly pay for warehouse and storage positions has been on the rise, but that hasn’t translated to more filled positions and long-term retention. As one show attendee pointed out, we need to do a better job of creating value for the employee. As a step in this direction, he suggested that companies have new hires set actionable goals for themselves on their first day on the job, and then offer incentives for reaching those goals. By shifting their mindset and looking through the lens of the worker, employers are more likely to find new ways to fill open positions and retain talent.
While companies continue to refine their hiring strategies, one industry group has taken action to ease the labor crunch by reaching out to new, untapped populations. In February, the Council of Supply Chain Management Professionals (CSCMP) introduced its new Center for the Advancement in Talent & Training (CATT), formerly known as the Talent Center. CATT’s mission is to bridge the talent gap by offering supply chain educational programs and professional development opportunities to high school students. Whether students plan to start a career immediately after high school or attend college or university, this initiative aims to develop future supply chain talent, especially within underserved communities.
One of CATT’s newest initiatives is a training-to-jobs (T2J) program, which kicked off in February in St. Louis, Missouri. The center has partnered with the St. Louis Public Schools Career and Technical Education program, along with other organizations like The Covering House, Rung for Women, Veterans Community Project, St. Louis Youth Development Program, and EDC/Stem-Ops, “to provide integration pathways via jobs, training, competitive wages, and support.”
It’s encouraging to see the time, attention, and efforts being made to solve the labor challenges. Collectively we can make a huge difference now and well into the future.
Gartner, Inc.
