Research shows that the warehouse industry experienced a 46.¹ percent employee turnover rate in 2024.1 This is a significant number compared to the average rate across all industries. Hence, manufacturing companies need to constantly fill positions, which may drive up costs and delays.
How can you approach the problem of turnover in high-churn roles? This article will explore proven retention strategies you can implement within your light industrial business to reduce employee churn rates.
The Nature of Light Industrial Staffing: Why Are There High-Churn Roles?
Light industrial work creates unique challenges that can naturally lead to higher turnover rates. Roles within this sector often involve intensive physical demand, repetitive tasks, and shift work that doesn’t appeal to every worker.
Additionally, many positions require standing for long hours or lifting heavy items. The work itself can feel monotonous, keeping workers from seeing a clear connection between their daily tasks and the company’s bigger goals.
Another possible reason behind high employee churn rates is the staffing model traditionally used within the industry. Many companies rely on temporary workers or contract employees, who view these positions as short-term solutions. This leads to high employee attrition rates since people leave quickly once they find better titles or job opportunities.
Read more: How to Make the Most of Temp Workers: And Get Them to Stay
So, high-churn roles are here to stay. What can you do about it?
8 Retention Strategies for Light Industrial Staffing
Employee turnover is not only expensive; it can lead to a poor work environment. When employees leave, they take their expertise and experiences with them. To prevent this from happening to your business, consider these eight retention strategies to reduce employee attrition.
1. Enhance your onboarding practices.
New employees often quit within the first few weeks because they feel overwhelmed or unprepared for their roles. A structured approach to bringing workers into the company makes the difference between someone who stays and someone who leaves after a bad first impression.
Your company needs to create a welcoming experience that builds confidence and sets clear expectations from day one.
- Try assigning each new hire a buddy or mentor who can answer their questions. These mentors are meant to provide guidance during the first few weeks of the new hires.
- Develop a checklist that covers safety training, job responsibilities, company policies, and workplace culture over several days rather than cramming everything into one session.
- Schedule regular check-ins with supervisors during the first 90 days to address concerns before they become problems.
Read more: Onboarding Essentials: How to Quickly Integrate and Retain New Industrial Hires
2. Improve benefits and incentives.
Workers who feel undervalued are more likely to choose another workplace with better compensation packages. Light industrial employees often work physically demanding jobs for modest pay, so additional benefits and incentives can tip the balance toward staying with your company.
These perks don’t have to cost a lot of money, but they need to address what workers actually value.
For example, implement attendance bonuses that reward consistent attendance. Offer flexible scheduling options that help workers balance personal responsibilities. You can also add health and wellness programs that show you care about their physical, mental, and emotional well-being.
3. Develop career pathways.
Light industrial workers who don’t see a future beyond their current position may develop a dead-end feeling that drives them to look elsewhere. Remember that people want to know their hard work will lead them somewhere better. So, companies that fail to identify and provide advancement opportunities lose good employees to competitors who do.
Building clear promotion paths doesn’t mean everyone becomes a manager, but it does mean creating steps that workers can see and work toward. Consider your employees’ natural tendencies, and plot pathways that can either capitalize on a technical skill or lead to a role that manages other people.
- Map out progression routes from entry-level positions to team lead.
- Include accomplishments needed to shift to other roles such as supervisor, quality control, or equipment operation.
- Post open positions internally first and encourage current employees to apply for better roles within the company.
Read more: From Paychecks to Pathways: How Employers Can Win Talent with Career Growth, Not Just Salaries
4. Create upskilling programs.
The rapid pace of change in light industrial work means yesterday’s skills might not meet tomorrow’s needs. Workers who can’t adapt run the risk of getting left behind, which may push them to look elsewhere.
With upskilling programs, employees will feel that your company values their growth and wants them to succeed long-term. This investment pays off through increased versatility and worker loyalty that reduces turnover costs.
If your organization can’t lead an upskilling program of its own, you can also create strong partnerships with local community colleges or vocational schools. With the right connections, you can still offer classes in important capabilities such as equipment operation, computer skills, or safety certifications.
Read more: Closing the Skills Gap: The Role of Employers in Reskilling the Light Industrial Workforce
5. Establish strong communication practices.
Workers quit managers more often than they quit companies. This can be driven by different factors, but poor communication is at the heart of most workplace conflicts that lead to resignation. When employees don’t understand expectations or feel ignored by their supervisors, they start looking for jobs where they feel heard and valued.
Clear and consistent communication can prevent small problems from snowballing into employee turnover. Hold regular team meetings to share company updates and give workers a chance to ask questions or voice concerns. Train your supervisors to give specific feedback rather than vague comments. It’s also vital to establish an open-door policy that encourages workers to speak up about issues before they become major problems.
6. Prioritize creating a safe environment.
Workplace injuries and unsafe conditions create fear and stress, which push workers away from companies that don’t prioritize their well-being. Beyond the legal requirements, a strong safety culture shows employees that your company values them as people, not just as production units.
Workers who feel safe and protected are more likely to stay loyal to employers who demonstrate genuine care for their welfare. To ensure you are keeping your people safe while maintaining a positive work culture, conduct regular safety training that goes beyond basic compliance. Encourage workers to report hazards without fear of retaliation.
Considering today’s light industrial field, invest in proper equipment and protective gear. Create a culture of safety: Reinforce the importance of everyone going home whole and healthy each day by celebrating safety milestones.
Read more: Safety and Retention Go Hand in Hand: Why Safer Workplaces Keep Employees Longer
7. Reward hard work and performance.
High performers are important stakeholders within a light industrial business—you don’t want to see their names on your turnover lists! To keep them from leaving, make sure you recognize their hard work.
Recognition doesn’t always require expensive rewards. Instead, it must be timely, specific, and meaningful to the individual receiving it. Workers who feel appreciated for going above and beyond are more likely to continue that level of performance and stay with the company.
There are different ways to reward hard work. For example, you can begin by establishing employee-of-the-month programs that highlight specific achievements. Along with this, you can offer small bonuses or gift cards for meeting productivity or quality goals. Create peer nomination systems where workers can recognize each other’s contributions. It’s also important to build a culture where supervisors regularly acknowledge good work both privately and in front of the team.
8. Work with staffing partners.
What if, after trying all the strategies above, you still experience low employee engagement and high churn rate?
Then it’s time to consider third-party support—specifically, partnerships with staffing firms.
Staffing partners can help your company improve retention by providing better screening, training, and support services. From effective hiring to tried-and-tested onboarding, the right partnership can fill your workforce with people who stay.
Experienced staffing firms understand the challenges of light industrial employment. They know what skills to look for and how to identify workers who are likely to stay long-term. Moreover, their comprehensive screening processes help place workers in positions that match their skills and interests. Better job matching leads to higher satisfaction and longer tenure.
Lower high churn rates by choosing the right partner.
Horizon America is well-known for providing expert staffing solutions to light industrial and manufacturing companies. We are equipped with over 30 years of combined experience as well as valuable knowledge about how to build a successful and loyal team.
Want to learn more about how we can tailor our services to your business challenges? Contact us today!
Reference
- Harver Team. “13 Tactics to Reduce Employee Turnover in Warehouse Recruitment.” Harver, 5 Mar. 2024, harver.com/blog/warehouse-turnover-rate/
