Supply chain disruptions remain a concern for many retailers as the holiday season approaches. Material shortages, shipping delays, and rising demand have logistics companies scrambling to accommodate surges on customer orders while they continue to navigate the current supply chain challenges. As a result, the industry is taking a close look at supply chain hiring trends and best practices to grow the workforce and increase efficiency throughout the holiday season and beyond.
The COVID-19 pandemic prompted labor shortages that remain a prominent issue around the country. The impacts to the restaurant, retail, and hospitality industries are front of mind for many, but the significant decrease in truck drivers and other supply chain workers has complicated global logistics.
To mitigate the impact the 2021 holiday season, the industry is attempting to staff up quickly. Retailers, warehouses, and transportation companies are actively recruiting hundreds of thousands of seasonal workers to handle holiday demand. Walmart held a two-day hiring event in hopes of attracting new associates. Trucking companies such as UPS and FedEx are also looking to hire to address the shortages and better prepare them for the influx in deliveries.
Hiring Best Practices
Even with employers going to great lengths to recruit employees, hiring can still be a challenge if employers are not competitive with the current supply chain hiring trends and best practices. According to a new U.S. Chamber of Commerce poll, many Americans who remain unemployed after losing their job during the pandemic are not actively seeking employment. Getting people back to work is more of a challenge than ever, but companies are actively incentivizing people to rejoin the workforce:
- Amazon has been able to improve their labor shortages by increasing their wages and offering all new hires sign-on bonuses of up to $3,000. In a recent interview, an Amazon executive stated that the company had onboarded 45,000 new employees in the previous week alone.
- Macy’s is now offering to pay for their workers’ college education in full, along with boosting their wages.
- Nordstrom is incentivizing new hires by offering a 20% discount on merchandise for all workers, competitive pay, and cash bonuses for all new employees.
Identifying improved incentives to attract new hires is a great tool when trying to build back the workforce. But as we continue to navigate the pandemic, supply chain hiring trends show that strong sign-on bonuses and workplace perks are not the only thing drawing people to return to work. While money is still important, many individuals have a heightened interest in their benefits packages, a better work-life balance, and a more employee-friendly work environment. To improve their hiring and retention practices, companies are incorporating additional best practices:
- Offering flexible/hybrid work schedules
- Assisting employees with childcare options
- Investing in skills training for employees and new hires
- Providing competitive benefits packages
- Identifying ways to improve workplace culture
Importance of Supply Chain Optimization
As logistics companies work to fill jobs, consumer demand continues to grow at record rates. Beyond the focus on supply chain hiring trends and an increased investment in hiring best practices, enterprises are taking a holistic view as they strive to optimize their supply chains and account for a smaller workforce. Manufacturers are expanding their investments in automation and smart technologies, and many have made the switch to plastic pallets from iGPS, which are lighter, more durable, and which flow more easily through automated equipment due to the absence of nails and splinters.
The workforce shortage in the supply chain and other industries is expected to continue. Companies that examine current supply chain hiring trends and employ best practices to expand the talent pool will have the best chance at staying competitive throughout this evolving crisis.
Companies impacted by the labor shortage can improve their efficiencies by using iGPS plastic pallets for all their shipping needs. Our pallets are ideal for all types of warehouse automation and help reduce your Total Cost of Business. For more information, contact us at 1-866-557-0047, email a specialist at [email protected], or visit our contact page.