John O'Kelly founded and is CEO of Newcastle Systems, which is all about warehouse technology, providing workplace mobility solutions to enhance worker productivity, operational efficiency, and organizational profitability.
Newcastle recently released its 2024 Worker Satisfaction Survey, titled “What Makes a Warehouse Worker Happy?” O'Kelly analyzed the findings from that report in a recent article for Smart Industry's sister brand, Material Handling and Logistics, called “Key Insights into Retaining Warehouse Workers.”
In this episode of Great Question: A Manufacturing Podcast, Adrienne Selko, MH&L's senior editor, shares O'Kelly's thoughts on improving employee morale and creating a supportive culture to maintain a stable workforce in logistics.
Below is an excerpt from this podcast:
Attracting and retaining warehouse workers has been a growing challenge for manufacturers and business leaders for more than a decade. While technological innovations such as automation and AI are rapidly transforming warehouse operations, the human element remains irreplaceable.
See also: We want your perspective on your digital transformation successes, challenges, and plans. Please take Smart Industry's annual State of Initiative Survey.
And while automation holds promise, it's not the silver bullet many believe it to be. It's especially difficult to automate every process in warehousing, where the flow of goods and the shapes of packages vary, underscoring a critical realization: No matter how advanced technology becomes, warehouses will always require human labor for specific tasks.
In today’s landscape, where labor shortages are felt across multiple sectors, the importance of creating a positive work environment and retaining employees cannot be overstated.
See also: Can smaller manufacturers deploy AI effectively?
Companies must move beyond surface-level solutions like increasing wages and focus on fostering deeper engagement, providing technological tools that enhance productivity and worker satisfaction, and cultivating a culture that makes employees feel valued. Without these elements, the already challenging labor market will become even more difficult to navigate.
One of the most pressing issues in today’s warehousing industry is the struggle to fill positions and hold onto employees. The difficulty, particularly when attracting younger workers, stems from various factors. Warehouse work is often physically taxing, sometimes monotonous, and can involve harsh working conditions, such as extreme temperatures and manual labor.
See also: How automated patching shields vulnerable manufacturing from cyberattacks
The key question for business leaders isn’t just how to attract workers but how to retain them in an industry often perceived as physically demanding and less appealing.
Warehouse jobs can be dirty and hard work. For younger workers, there are simply other lines of work that they find more appealing, less physically demanding, and offer more immediate satisfaction. This means that the industry needs to focus on attracting and retaining workers by addressing the factors contributing to job dissatisfaction and high turnover.
