3 Warehouse Labor Challenges to Expect in 2022

Are you a business owner who's been dreading the day when your warehouse will be short-staffed? Well, 2022 is just around the corner, so it might be time to start panicking! In this blog post, we'll discuss three of the biggest challenges that businesses will face when it comes to warehouse labor in the next few years. Keep reading to learn more!

Why Labor Challenges?

It is not just the global pandemic keeping the warehouse labor force out of work. eCommerce giants find it challenging to retain substantial workers leading to the warehouse labor shortage. Earlier estimates showed that only 29% of warehouses could be filled with employment applications. Many warehouse workers were forced to work overtime despite high-risk situations during the pandemic. This led to nearly 4.3 million workers leaving their jobs by August 2021. 

According to some reports, eCommerce giants make most of their employees do less paid overtime. Another factor is that warehouses are not capturing young talent as most employees are older. And since the pandemic, work from home has come to the fore. As a result, it is expected that warehouses worldwide will face workforce challenges in 2022. Let us examine some of these. 

Top 3 Labor Challenges to Expect in 2022

1. More of Temporary Staff

Employers cannot tap into a new talent for successful labor in the industry; they need to rely on new unskilled workers. This could include hiring college students looking for part-time employment, seniors, and highly qualified people who are unfit for jobs. Teaching them the trade and tricks is expensive and time-consuming. Moreover, they need to be hired on a lucrative remuneration, which means more financial expenditures than efficient warehouse labor. 

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2. Hard on Retention

Every other new day, a start-up is springing into action or a new business taking off in the market. The situation is volatile, and people need to make more money; hence, workers are looking for greener pastures. A loyal employee is hard to hold back these days; people leave the job for better pay packages, bonuses, extra benefits, less commute time, and live life on their terms. The main challenges of warehousing are expecting the employee trained for two weeks to keep up with the demanding shift schedules and working conditions. The moment they see a new opportunity, a vacant spot will be filled. 

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3. Suppressed Market

The labor market has saturated to the point of people leaving their jobs to start their business ventures and looking for new options. Most of the businesses have restarted after the global pandemic, and they are recouping from the loss incurred due to lower amounts of profits; hence it is next to impossible to hire new workers. The warehouse challenges a demanding work environment, and temporary hands are not the practical solution to increasing demand and market supply. Employees expect a clean and safe work culture and do not want to go back to overcrowded facilities that endanger their health. Hence, there is an unequal labor force distribution in the current situation. 

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Conclusion

In 2022, employers have to hire workers to do the task outside their comfort zones. This means employing contingent labor who work as independent contractors or freelancers. This system is gaining popularity, and it is the only way to retain the existing workforce.