The fourth quarter of every year represents peak hiring season for distribution centers around the country - a time that could either make or break several businesses hovering on the line.
The challenges are especially true for any warehouse operation that has had to reduce its workforce over the years, in turn forcing it to ask more of every employee available, Supply Chain Digest reports.
According to the news source, several of these companies are having to simply get by with outdated material handling programs and order fulfillment processing methods. This has led many to worry that this season, they'll struggle to balance improving customer satisfaction and employee expectations. To ensure employees aren't overworked during peak demand periods, warehouses often turn to the contingent labor force for the extra support they need.
However, bringing on these contract workers can come with extra baggage. According to the media outlet, the worker's experience and skills, language and distribution center prowess are all factors that must be considered before a contract worker is hired.
The inherent problems with contract staffing, such as turnover as high as 70 percent, must also be addressed during these peak periods. Because the cost of employee turnover can be immense, it's best to train all contract workers to ensure they have the necessary skills and are comfortable in their position.
It may seem counterintuitive to put the time in to train a worker who is hired on a contract basis, but in fact, it has proven to help lower turnover.
According to one study conducted by the Center for American Progress, the cost of employee turnover extends beyond a single worker. With each lost employee, there are major losses in productivity during training, recruiting and downtime while a position is vacant. Financially, it could set the company back as much as 20 percent of the employee's salary.
Insource Performance Solutions has developed a new platform for hiring contract workersthat focuses on maintaining productivity and providing necessary training, helping to lower turnover rates.