It takes more than a paycheck to keep workers happy on the job, especially in logistics, where work can be physically demanding and good help hard to find. The good news is that technology is playing an increasingly prominent role in the industry—and when it comes to workforce retention, tech-based solutions may be just what managers need to keep their people focused, productive, and happy in their jobs.
“This is a big topic. We are constantly having discussions with customers about labor in one form or another,” says Ken Ramoutar, chief marketing officer at warehouse technology solutions provider Lucas Systems. He says the issue is especially acute in warehousing and distribution, where labor-intensive and mundane tasks can dampen morale and cause workers to jump ship, creating a host of production problems. “[Labor] retention has a really big downstream impact. If you’re constantly having to replace workers—or if people don’t show up and you can’t get work done—there’s a domino effect. We hear that pretty universally across our customer base and prospect base. They need new and innovative ways to solve this retention problem.
“And you can’t keep escalating pay,” he adds. “Having technology that can make their jobs easier is what [workers] want.”
Innovative technology is also what managers across the supply chain want. These leaders are adapting their worker retention strategies and focusing on technology adoption to combat what supply chain technology developer Descartes Systems Group recently characterized as a “notable workforce shortage” throughout the industry. More than half of 1,000 industry leaders surveyed by Descartes said as much: According to an April report titled What Are Companies Doing to Survive the Supply Chain and Logistics Workforce Challenge? that detailed the survey’s findings, 54% of supply chain and logistics leaders said they are focused on automating nonvalue-added and repetitive tasks with technology to improve worker productivity and combat labor shortages. And more than a third said that adopting the latest technologies in their operations is a top strategy for employee retention.
“The workforce problem is pervasive, and the study confirms that most supply chain and logistics organizations have made changes to their operational, technology, recruitment, and retention strategies to help combat the issue,” Chris Jones, Descartes’ executive vice president for industry, said in a statement announcing the report’s findings. “Based on the results of the study, we believe that employers should continue to invest and evolve to get the most they can from their existing resources and focus on more than money to hire and retain a capable workforce.”
To that end, tools that can streamline tasks and boost workforce engagement are helping companies create more attractive workplaces and capitalize on their labor investments.
THE CASE FOR A GAMIFIED WORKPLACE
Lucas Systems provides a range of warehouse technology tools aimed at streamlining operations; among them is its voice-picking software called Jennifer, an artificial intelligence (AI)-based system that verbally tells workers where to go and what to do when they get there, freeing their eyes and hands for picking tasks. Proponents of voice-based warehouse solutions say they both ease and speed operations throughout facilities, adding that they can be applied to other processes as well, including receiving, sortation, and replenishment. Today, Lucas is building on those capabilities by incorporating “gamification” features into the product, including configurable games and competitions, leaderboards, and the like. Ramoutar says these features will drive even more efficiency and promote camaraderie in the warehouse, both of which will help boost worker retention.
“Everyone [is familiar] with games—whether [it’s] online gaming or board games—so it’s not a new concept. It’s just a new concept in the workplace,” he explains. “People get it; they’re not afraid of it. And they want the workplace to be as much fun as possible.”
Research backs up those claims. Earlier this year, Lucas Systems released the results of a gamification study in the third installment of its Voice of the Warehouse Worker white-paper series. The study, which asked 750 on-floor workers in the U.S. and Great Britain about their fears, expectations, and perceptions on the job, found that, overwhelmingly, warehouse workers value team-based competition in the workplace and want to work for companies that incorporate contests into the daily grind of warehouse and distribution center work. Nearly 84% of the workers surveyed said they were more likely to stay with a company that develops workplace competitions around their day-to-day tasks, with many saying they would be eager to participate if it meant earning recognition or prizes.
“We learned in the study that folks like games, they like competition, they like the camaraderie, they like teamwork—they like so many things about gaming,” Ramoutar says. “And we felt that’s a really strong indicator that workers value engagement in the workplace in such a way that they want to work at places that are thinking about doing things to help [make the] work easier, faster, [and more enjoyable]—because warehouse work is tough work.”
Implementing gaming in the warehouse requires more than just the will to do it, however. Ramoutar says managers need a system that allows them to easily set up competitions and that also provides an interface where workers can connect. That’s where technology comes in. He says Lucas has those elements in place already—through its voice-based Jennifer interface and the system’s management console, which allows managers to view and track worker activity in real time.
Ramoutar says the task now is to add functionality that will allow managers to easily get games up and running. Lucas’ developers are creating programs that will do just that, including gaming configurators, leaderboards, and enhancements to the voice system that will give workers real-time feedback on how they’re performing.
Lucas expects to introduce some of those programs to the market later this year, Ramoutar says. But he also notes that gamification is just one part of a larger tech-based strategy to address labor retention issues.
“[Companies] are looking for more creative ways to make their workplace the workplace of choice,” he says. “Gamification is one way—but just bringing in new technology is another way.”
TECH THAT ATTRACTS
The Descartes study underscores the value of bringing new technologies to the logistics workforce: More than a third of logistics industry leaders surveyed said flexibility and technology adoption are top strategies for attracting new talent. But money still matters: The study also found that compensation for on-the-job training (35%) and higher pay (34%) are top strategies for retaining workers.
Mike Horvath, executive vice president and chief marketing officer for transportation management systems (TMS) provider Revenova, says technology can address both issues. Revenova offers a cloud-based TMS for brokers, shippers, carriers, and logistics service providers built on the customer relationship management (CRM) platform Salesforce.com. He says demand for creative incentive pay solutions is especially high among freight brokers and that technology can help satisfy that need.
“We provide tools for helping our customers put together interesting compensation models to incent their people to be successful and earn a lot of money,” he explains. “Any retention play [will have] people looking at how much they are making and how much can they make. Our TMS helps companies implement and execute those plans.”
And just like in the warehouse, gamification is a key component. Revenova offers a workflow tool for creating competitions that drive incentive pay, but companies can also access apps through the Salesforce.com platform to set up contests to reward top performers. Horvath says flexibility in designing those programs is key, noting that customers can tailor programs to performance metrics that meet their needs. He adds that this is just one aspect of the TMS that focuses on employee retention; the system also offers AI-based programs that streamline work throughout the fleet management process, from the office to the road. Revenova’s newest fleet management module, for instance, enables real-time collaboration and provides a single console view for all fleet operations, along with dynamic trip planning functionality no matter how many drivers, legs, assets, or loads. That means route planners can more easily tailor trips to meet drivers’ specific needs—making the truck driver’s job a little easier, as just one benefit.
“Driver quality of life is a big thing. It’s a big, big thing,” especially among larger transportation carriers, Horvath says.
All of these tech-driven strategies, he adds, “lead to happier employees and better retention.”
And that’s good news, according to Ramoutar, who says the worker retention problem is here to stay.
“Those who are thinking the hiring and retention problem was a Covid issue, that’s not true,” he says, pointing to a retiring baby boomer generation and less-populous generation Z as key barriers to building up the logistics workforce. “This problem is going to be around for quite a while.”
