Dealing with employment has never been an easy task for supply chain leaders. Recent challenges like the Great Resignation (also known as the Great Renegotiation), quiet quitting (workers doing the bare minimum), and the "soft life" (people that frequently start, stop, and start a job again) are causing headaches across the supply chain industry and beyond. What can supply chain and logistics companies do to navigate these challenges? During a roundtable educational session at the 2022 CSCMP EDGE Conference, Brian Gibson, executive director of Auburn University's Center for Supply Chain Innovation, along with 40+ attendees, offered strategies to help address current and future labor shortages.
The biggest common denominator that Gibson noted when he asks workers why they have left a job is a person's direct supervisor/boss. Who you put in front of your new hires makes a world of difference when it comes to attrition. Gibson and session attendees agreed that organizations should do more to have the right leaders on-board new hires.
The first 90 days are the most critical. One company conducted a recent retention experiment with their newly hired drivers. They had half of the new hires work with drivers based on seniority while the other half on-boarded with drivers (regardless of their years of experience) who were excited to work specifically with new employees. It came as no surprise when 90 days later the enthusiastic leaders retained a higher percentage of their new hires than those drivers who were chosen by seniority to on-board the new people.
Yet even if you have your best people recruiting and on-boarding new employees, there are other strategic to consider as you tackle your labor and talent issues. Here's a snapshot of the ideas presented during the roundtable discussion:
- Academic institutions can do a better job of preparing students for the workforce by requiring internships and giving students experiences that can't be replicated in the classroom.
- Take the time to create a culture within your organization. For example, align the culture in your warehouses to match the corporate culture. This makes new hires feel like they are a part of a team no matter where they work within your organization.
- Consider a mindset shift. Gibson suggested, for example, that many companies should change their perception that they will hire lifetime warehouse workers. It's important to plan for obsolescence and turnover.
- Let go of people that are not the right fit, even when you really need positions filled. For one company, retention increased when managers let workers go that could not learn the hourly job well after 30 days. Those workers who remained were thankful and let management know that their work environment was much happier with coworkers that could master the job training.
- Consistently ask for feedback from employees. Find out what they need to do their jobs efficiently and effectively. Engagement is key to retention.
- Consider a "day in the life" program, which is an opportunity for potential hires to experience what a specific job will be like before you hire them. Giving people visibility up front is a valuable tool.
- To attract younger hourly workers, make sure to show them the benefits beyond the hourly wage. For some jobs it might be a discount, robust benefits packages, or guaranteed vacation time. One company gave everyone a free Spotify account, which was a huge hit with the younger crowd. Also consider giving hourly workers a "path to supervisor" pathway. Not everyone will take advantage but showing an associate a path might motivate them to stay longer and set goals for advancement.
- Lead by example. One company requires all supervisors to spend 2-3 days a month working in a facility doing the jobs their employees do. When you actively experience what your employees experience during their workday, you not only understand what challenges your people face, you build trust.
Whatever the challenges you face within your supply chain when it comes to attracting and retaining talent, Gibson suggests that you remember to be relatable, give your workers value and purpose and proper training, and don't be afraid to get creative.
