Stores like Amazon, Walmart, and Dollarbaum are scrambling to fill positions in their warehouses due to the ongoing labor shortage. This issue was already prevalent before the pandemic, but the situation has grown more intense as online shopping has surged. The epidemic has further exacerbated the issue, pushing major retailers to hire additional labor and prepare for the holiday season with a record-breaking number of job openings.
According to a survey conducted by the headhunting firm Korn Ferry in August, 52% of the retailers surveyed claimed to be facing significant recruitment challenges for warehouse workers, while 33% mentioned encountering hurdles in their overall recruitment processes for their stores.
Craig Rowley, Senior Client Partner for the retail sector at Korn Ferry, commented that the demand for warehouse workers is still growing. He noted that anyone interested in working in these positions already has a job, with limited vacancies available.
Experts in the retail, recruitment, and logistics sectors suggest that jobs in warehouses can be more challenging than usual, with roles like maneuvering equipment, loading trucks, and handling shipping and receiving requiring physical exertion and specialized skills. Additionally, most warehouses operate round the clock, making it challenging to find workers willing to work late or night shifts.
Moreover, warehouses are often situated in rural areas or on the outskirts of cities, where fewer job applicants are available, and commuting times may be less attractive for potential employees compared to positions in city centers.
Craig Rowley added that distribution centers are usually located outside of major metropolitan areas, requiring fewer personnel staffing, as opposed to stores situated in the city.
This intense competition for talent has led to major retailers offering sign-on bonuses as an incentive to fill vacant warehouse roles. With the holiday shopping season fast approaching, companies are hiring additional workers to meet the increased demand and prepare for Christmas deliveries.
Walmart is offering temporary wage increases of a few dollars per hour for warehouse workers every two weeks and a one-time bonus of up to $1,000 for workers who remain employed through July and August.
Dollar Tree announced in late July that it would pay signing bonuses of $1,000 to new warehouse workers hired between June 27 and September 4. Burlington, another retailer, is offering its first-ever signing bonuses of $1,000 for certain warehouse positions.
Amazon announced in May its intention to hire 75,000 workers across its logistics network, with starting wages at an average of $17 per hour – a rise from the minimum wage of $15. The company is also providing new hires with a signing bonus of up to $1,000.
The fierce competition for labor has pushed companies to invest in competitive compensation and retention programs, while also exploring opportunities for unionization and aggressively opposing unionization efforts to maintain control over their workforce.
