Many warehouse managers struggle with workforce shortages, high turnover rates, and fluctuating productivity levels. Low warehouse employee retention increases labor costs, hurting a warehouse’s profitability. It also dampens overall productivity.
Smart warehousing technologies help mitigate common labor issues. With a warehouse management system (WMS), managers can streamline employee onboarding and training, implement efficient workflows, and enhance workplace safety.
Understanding warehouse employee turnover
Labor shortages are a major concern for the warehousing industry. According to a February 2025 report from the US Bureau of Labor Statistics, over 370,000 jobs were unfilled — a 15% increase from February 2024. And warehouse turnover was high, with over 177,000 workers voluntarily quitting their roles.
This isn’t a new trend. The warehouse and transportation sectors are notorious for high turnover rates and labor shortages. There are several reasons for that.
Increased demand from online retailers
Warehousing is a fast-growing industry driven by the ecommerce boom. By 2029, it’s expected to generate worldwide revenues of $1.94 trillion. Warehouses bear much of the operational support for ecommerce retailers by storing inventory and facilitating shipments and returns. As ecommerce continues to flourish, the need for warehouses (and warehouse labor) rises, too.
Changing workforce demographics
The average warehouse worker is 36.8 years old. In fact, 48.1% of warehouse employees are under 35. That’s moderately younger than the average age of workers across all industry sectors, which is 42.2 years old.
What do younger workers have in common? Many haven’t settled on a career yet. Some may need a source of supplementary income for their regular jobs. Warehouses often seek temporary labor during peak seasons, making it an attractive option for young workers looking for an easy income source.
For warehouses, that’s a double-edged sword. Temporary labor fills in gaps, but it also leads to increased training costs and errors.
Consequences of high turnover
A revolving door of employees presents a real problem for warehouses. For one, new workers generally have less job familiarity than their more experienced colleagues. Employers must train them on warehouse systems, floor layout, job responsibilities, and safety. It can take several weeks for a worker to get fully comfortable in their role. During the training period, they’re more likely to make mistakes that disrupt operations.
Soaring recruiting and training expenses driven by high turnover reduce a warehouse’s net income. To stay profitable, warehouses must find a way to minimize training costs or reduce turnover rates.
Modern warehouse management system benefits
A warehouse management system can alleviate many of the issues caused by high turnover. Here’s how.
Streamlined onboarding and training
A WMS like Logiwa IO integrates with systems you already use to manage your workforce, including NetSuite and SAP. That makes it easy to add new warehouse employees to your systems and ramp up their job responsibilities.
With a WMS, newly hired workers receive clearly defined tasks. The system assesses incoming orders and assigns picking and packing responsibilities to each worker based on configurable workflows. Logiwa provides directed putaway and smart picking that reduces the need for extensive training on warehouse processes and tasks.
Learn about Logiwa’s Directed Putaway in this quick video.
Improving daily operations
New employees unfamiliar with a warehouse’s layout benefit from WMS picking path optimization. This feature tells the worker exactly where a product is and how to access it. That’s a tremendous time saver that keeps your workers from wandering the rows looking for items.
A WMS provides real-time insights into workplace productivity. Managers can compare pre-set productivity benchmarks against actual employee performance and address concerns immediately.
As an example, assume a warehouse has an average order fulfillment rate of 90%. If the rate suddenly drops to 70%, a manager could quickly determine the cause and take corrective steps to fix it. Without the WMS’ insights, a problem might go unnoticed for days or weeks.
Enhanced workplace safety and satisfaction
Warehousing ranks as one of the more risky occupations. According to the US Bureau of Labor Statistics, 4.7 of every 100 full-time warehouse workers experienced an injury on the job in 2023. That’s nearly double the 2.7 worker average across all industry sectors. Even worse, 38% of employees injured on the job require time away from work, and 49% return to work with activity restrictions.
A WMS can’t prevent every workplace accident, but it can help reduce them through predictive analytics and efficient workflows. Predictive analytics help identify potential hazards on the warehouse floor and notify workers so they avoid them. For instance, if an item is located on a high shelf, the WMS can alert the worker so they take appropriate precautions during the picking process.
Efficient workflows keep employees busy without unnecessary stress. They maintain an orderly picking and packing process, even during peak periods. Reduced stress helps workers stay focused and avoid accidents.
Smart warehousing technology and employee satisfaction
Warehouses continue to invest in automation and robotics. Amazon paved the way by deploying over 750,000 robots across its extensive network of warehouses. Robotics are used for tasks such as storing inventory and sorting packages for delivery. Smaller companies are paying attention, and some are adopting similar robotics tools to improve warehouse safety and eliminate routine tasks.
Improved access to data is also a driving force for warehouses. With data, warehouse managers get clear insights into workplace productivity and employee performance. The analytics can help managers identify shifting employee sentiment and proactively address it.
For example, a warehouse manager uses analytics to monitor employee call-outs and absences. A rise in employee absenteeism could indicate declining job satisfaction. The manager could investigate the cause and implement solutions to improve the workplace environment.
Implementing a modern WMS: Best practices
A WMS is essential to any modern warehouse seeking to stay competitive in the industry. However, starting with a new can upend a warehouse’s standard operations processes. To get the most out of a new WMS, follow these steps.
1. Assess and plan
Consider the current systems you’re using. Where do they lack functionality? What could a new WMS add to your existing operations? Talk to stakeholders who use the existing systems to get a clear understanding of the business requirements. Their advice can help avoid selecting a solution that doesn’t align with warehouse needs.
Implementing a WMS requires time, it’s definitely not something to do during peak seasons. Choose an implementation date that won’t impact your busiest periods.
2. Train and support
Employees may need training to fully leverage the capabilities of a new WMS. Ask the WMS provider about training solutions for your staff. Many offer training programs that teach employees how to use the WMS in their daily responsibilities.
Ongoing support is necessary as employees join your team or as the WMS provider introduces new features. Take advantage of any resources available through the provider. You may want to create in-house training materials for warehouse-specific tasks.
3. Measure success
After implementing a new WMS, set a few key performance indicators (KPIs) to track employee sentiment. Examples include employee turnover, accidents per month, and order lead time. A decrease in all three metrics indicates your warehouse (and team) is benefiting from the new WMS.
Motivating employees and reducing warehouse turnover with WMS
Fast-growing warehouses can hardly keep up with order demands. Difficulty finding and retaining new workers results in reduced shipment accuracy and increased hiring and training costs. The solution may lie in your WMS. With an advanced WMS, warehouses benefit from shorter training times and improved worker satisfaction.
Logiwa provides an advanced WMS solution to enhance workflows and boost productivity. To discuss how Logiwa can benefit your warehouse, book a demo today.
