Sunday, April 10, 2016

Leadership in Distribution Centers - Employer of Choice

It is a fierce battle out there for great talent in warehousing.  I mean for all talent - hourly and salary. This segment has really become the "manufacturing" of the 21st century.  While everyone seems to talk about manufacturing, hoping for jobs, what they really find is manufacturing has come back to the US due to high levels of automation and robotics.  It is warehousing and distribution, as E-Commerce grows, that will drive supply chain employment.

Back in September we were warned about the shortage of warehouse labor at both Marketwatch and in the JOC in an article titled: US Warehouse and Logistics Sector Warned of Labor Shortage.  Both of these predictions have come true and they are even more pronounced during the "busy" season(s).  So what is a leader to do?

One thing you do not want to do is get into a wage war.  That does not solve any problems for anyone.  The real activities which influence great employees to want to work in your warehouse v. the competitors are three-fold:

  1. Treatment:   It should go without saying if you do not treat people with dignity and respect, they will not want to work with you.  This is true for managers and it is true for hourly associates.  While this seems like a truism, in my travels and consulting, I find I almost always have to remind people of this.  Activities like communication, sharing business results, and involving people in decisions all show people they are being treated as true partners in the organization.
  2. Environment:  Make the environment a place you would want to work.  If you would not want to work in the location why would you expect others to want to work there?  This does not have to mean you have a fancy place.  But, it does mean, attention to cleanliness, a place for people to take breaks that you would be willing to take a break in, a safe environment and ergonomically friendly all will lead to people wanting to work in your location.
  3. Ability to Advance:  Nothing makes people more mad than when they see people coming "off the street" getting the benefit of the doubt over current employees.  People want to work where they are respected and one sign of respect is to offer them training and opportunity for advancement.  
Finally, yes, you do have to pay competitively (that goes without saying).  However, if you do not do the three items I mention above, your chances of having a great workforce, with low turnover and high engagement, will be next to nil.  

A great recent read is over at Forbes on Line and the article is titled: Employee Engagement is Not Just a State of Mind.  I will not recite everything it says as you should go and read it however the author lists 4 key factors for engagement:
  1. Recognition
  2. Planning
  3. Communication
  4. Contribution
Every manager needs to have an employee engagement plan.  It needs to be written, tracked, measured and adjusted as needed.  You may find, if you are a center manager, this is the biggest leverage point you have to drive both quality and productivity.  

For some more ideas, read a great article over at Harvard Business Review How One Fast Food Chain Keeps Its turnover Rates Absurdly Low.  We in supply chain can borrow these ideas.  

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