The statistics show that warehouses are among the top four workplaces for the highest staff turnover. On average, warehouse staff turnover is 37% in one year. To put that into perspective, the average turnover rate across all industries is 3.6%. Turnover, however, is a normal part of the business, but there are some businesses running warehouse operations, like Amazon, for example, that has a terrible reputation. On average, Amazon loses 3% of staff per week or 150% per year. Can this be prevented? Let’s explore.

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The General Causes Of High Staff Turnover Rates

Warehouses are unique because there are issues relating to the specific manual labour involved in warehouses and whether staff feel they’re compensated enough for it. Amazon, for example, hires predominately agency workers on zero-hour contracts and has repeatedly found themselves in the wrong sort of limelight for how they treat staff. The average warehouse salary is £10.63 per hour or £21,000 per year.

Behind high staff turnover rates also lies being overworked. Again, to refer to Amazon again, one report stated employees were given back-breaking jobs, no breaks, and little recognition. Put those three together, and you have a trio of reasons why staff might leave.

The list of reasons why warehouses suffer from high turnover rates could go on endlessly, but we’ll finish with company culture. Company culture is often at the bottom of priorities for warehouses that, as noted above, tend to hire agency workers. Couple this with the high staff turnover rates, and there is a distinct lack of company culture because it’s hard to create. It’s an issue unique to warehouses – office-based work, for example, is now heavily angled towards company culture.

What The Employees Think

Employees have taken part in numerous surveys, and the data speaks for itself. At the top of the list are recognition and reward. 37% of employees interviewed for a survey rated it a reason they would leave a company – yet it’s so easy to recognise and reward with employee incentive programmes. Click here to see an example of a programme that guarantees to make employees more productive simply by rewarding them.

Employees also reveal they want progression – one study in the UK revealed that out of 2,000 adults involved in the study, a fifth of them had left their last job because of a lack of progression. Progression provides career value, allows employees to improve their skillset, and focuses on empowerment.

A recent Gallup study found that 64% of employees consider pay increases and benefits very important. It’s no secret that the cost of living has increased – anyone who hasn’t had a 10% pay increase this year is now technically 10% worse off as inflation rates sore to record highs of 9%. On the other hand, businesses are also feeling the inflation pinch and perhaps might not have the means to offer better pay.

Can It All Be Prevented?

In short, most of the issues that cause employees to leave are preventable. Better working conditions, increased pay, and more progression opportunities are almost always feasible. One way of finding out what needs to improve to reduce staff turnover rates is by handing out a 360-degree survey. It’s anonymous and encourages employees to speak out about the issues they think need to change.

Warehouses might be up there with one of the highest staff turnover rates, but they’re also a highly sought-after job. Warehouses typically run using shift work, meaning there’s the option for mornings, afternoons, evenings, and night working hours. The flexibility draws people in, but more needs to be done to improve turnover rates.

 

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