The Issue of Warehouse labor Shortage is Serious for Logistics Companies

The ecommerce’s and logistics industries are flourishing every day and these industries are creating a huge demand for labor to join the newly formed companies. Since more and more customers are relying on online sales, they require more warehouse space and employees to meet the demands of growing customers. As the time progresses, it is becoming more and more difficult to Bridget these gaps of labor shortage in the ecommerce market.

If these labor shortages prevail in the industry, they will surely slow down the growth of the industry in the United Kingdom and Europe. Why are we experiencing this warehouse labor shortage? Let is explains these things and issues a little bit in more detail to provide a reasonable answer.

Unemployment is Low

The unemployment follows the same issue of supply and demand. Similar to any other industry where products are sold and bought, when unemployment is high, it becomes very hard for companies to hire workers. However, when the scene is the other way round, it is harder for employers to fill the required job. They often find a lot of good candidates and decide the person with the best skills.

In the item of low unemployment, the pool of applicants is also smaller.  This forces employers to be more competitive to attract new employee by offering higher wages, better benefits or better schedules.

Generational differences play an Important Role

An article published in the United States Bearer of Labor Statistics states thatin the current times of economic uncertainly, people are working for a longer time than their age permits. That means no one wants to retire at 55 or 60. Since many baby boomers in the United Kingdom are working in logistics industries, it is difficult for the young people to take their roles.

However, one big difference is that Gen X people and youngsters have more opportunities to higher education than ever before. That makes it harder for them to accept blue collar jobs and fill them for lower wages. That means warehouse labor shortage is bound to occur as no more young people are willing to take these low paying jobs.

Automation Haas Redefined the Job Market

New technology and automation can make repetitive tasks easier and more efficient for workers. Every day for example, logistics companies in the UK are hiring quality assurance technicians with greater skills. By implementing technology like this, companies can utilize workers efficiently.

Technology has helped employers to increase the number of jobs instead of decreasing them. This makes it more exciting and enjoyable for workers to use technology as compared to manual machinery and get hurt physically. As more technological work trends are flourishing in the world, companies are having trouble to hire warehouse labor workers in the world.

Changing Culture and Care for Employees

Nowadays, companies are moving forward to hire more productive staff than ever before. The truth is that staff labor has the highest turnover rate and the biggest expenditure. Many companies are designing systems to support warehouse employees; however, similar industries with qualified labor still need more employees to meet the needs of their warehouses. So, the gap is ever present in the UK door to door parcel delivery companies to hire new workers.

Moreover, today’s organizations are laying more focus on hiring the staff that is more diverse and meets the needs of communication and leadership. Employees on the other hand require flexible schedules and the work environment that they can trust. Employees need more recognition of their hard work that is lacking in many organizations. Employees often think that creating win-win situation is different with employees who don’t care much about their wellbeing. Hence, in the absence of a great solution for both employers and employees, labor shortages are bound to happen.

Other Reasons

Since your large parcel delivery company in the UK does not provide ample employment benefits to warehouse workers, they are ready to leave the organization to start a new career or join a new company. With additional unemployment money, workers are able to enjoy benefits and start their own businesses. The Government is helping some people in the middle of COVID-19 pandemic to become sustainable and self-supportive. That is the reason many warehouse workers including immigrants feel that they need a better solution to meet the needs of their families.

Work Life Balance

Lastly, we like to mention the most important issue of work life balance for workers in the logistics industry. Many routes are long haul trips that keep drivers away from their homes. Some drivers have taken this chance search for other opportunities in their areas. The lack of work life balance is a vital factor that keeps demotivating warehouse workers who fail to give ample time to their families and friends.