info.instawork.com Open in urlscan Pro
2606:2c40::c73c:671d  Public Scan

Submitted URL: https://cqtdg04.na1.hubspotlinks.com/Ctc/5D*113/cQTDg04/VWK8cW2kzy1zW4VqRyw75BTgpW4jRtpV4ZdWzHN97h0Hf3q90pV1-WJV7CgTlHV_Y3G91rM_1nW5Q...
Effective URL: https://info.instawork.com/state-of-warehouse-labor?utm_campaign=State%20of%20Warehouse%20Labor%202023&utm_medium=email&_hs...
Submission: On April 11 via api from US — Scanned from DE

Form analysis 2 forms found in the DOM

POST https://forms.hsforms.com/submissions/v3/public/submit/formsnext/multipart/6906884/adc50ac0-5be4-4c4b-bf55-42ec6245826f

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        <p>For more on how we protect your privacy, see our Privacy Policy.<br>&nbsp;<br>&nbsp;</p>
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POST https://forms.hsforms.com/submissions/v3/public/submit/formsnext/multipart/6906884/6e01666d-0056-491b-8a29-00d3622de6d1

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      <h3 style="padding-bottom: 5px;">State of Hospitality Staffing</h3>
      <p>Tell us a little bit about yourself before you explore the report</p>
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STATE OF WAREHOUSE LABOR REPORT

After another challenging year,
using flexibility as a key to success

 

2022 was a challenging year for the light industrial space. After years of high
demand and supply chain issues, consumer spending stalled, leaving businesses
with leftover inventory and rising costs that cut into profits.

A shortage of permanent workers continued to challenge the industry as tight
margins limited pay raises. Many warehouses and other light industrial
businesses started to look into alternatives, including greater automation, but
such solutions take time.

However, as inventories begin to decline, businesses in the sector—from
warehouses to distribution centers to third-party logistics providers—expect a
return to a state of normalcy. To learn more about their staffing and business
expectations for the upcoming year, Instawork partnered with Logistics
Management in January 2023 to survey more than 400 light industrial business
leaders responsible for hiring, interviewing, or sourcing full-time or part-time
labor for materials handling, distribution, and/or fulfillment. Read on to learn
more about our key findings.

 


TO RECRUIT AND RETAIN STAFF, BUSINESSES ARE CHANGING THEIR APPROACH

Going into 2023, leaders at light industrial businesses say they are feeling
more confident about their labor supply. Roughly half (51%) of them agree that
it will be easier to find workers this year than it was last year. And after
years of labor shortages, respondents report that they’ve gotten better at
attracting and retaining staff.

The number of respondents who feel they have an effective employee retention
strategy has increased from 76% in 2022 to 85% in 2023, and the number of
respondents who feel they have an effective recruitment strategy increased even
more, from 59% to 76%.

of businesses agree it will be easier to find workers this year than it was last
year.



Businesses have tried a variety of tactics to recruit and retain staff. While
incentives like rewards, extra time off, new benefits, or promotions increased
in popularity among respondents last year, increasing pay and offering flexible
schedules are still poised to be the top recruitment and retention tools in
2023.

of businesses are offering flexible schedules to their workers.



Over one-third of businesses raised pay last year, with 37% raising pay by at
least $1/hour, yet these raises didn’t always close staffing gaps. In comparing
this year’s survey to last year’s, fewer business leaders now see increasing pay
as an effective strategy for improving retention as more of them see flexible
schedules as effective.




DESPITE CHALLENGES AND FLUCTUATING DEMAND, BUSINESSES FEEL MORE PREPARED IN 2023

Staffing challenges and fluctuating demand took a toll on businesses again last
year. 34% of respondents had to forgo business due to a lack of available labor
in 2022, up slightly from 31% in 2021.

Among those that had to pass up revenue, 64% of respondents say they had to
forgo revenue that amounted to more than 25% of their total business, compared
to 21% who had to forgo that much the year prior.



This is a monumental change and an important reason why 45% of respondents
reported either no increase or a decrease in fulfillment volume for the year.

Unpredictable swings in demand also make it nearly impossible for businesses in
this sector to staff effectively. Respondents are reporting that these huge
swings in demand are the biggest challenge to their recruitment and retention
efforts—and the number one reason they’re turning to alternative staffing
strategies.

of respondents cited variable demand as a reason for using flexible labor, more
than any other response.





FLEXIBLE WORK APPS AND ONLINE PLATFORM USE DOUBLED SINCE 2021

Despite these challenges, businesses still feel better prepared to manage
expected volume in 2023 compared to 2022, crediting flexible labor as a key to
their optimism and success.

Overall, businesses are recognizing the need for flexibility, whether that be
internally or externally.

of respondents agree there is more acceptance of flexibility in worker schedules
and shifts


They understand that they need to become more versatile to keep up with the
labor market and manage volatile demand, and have increased their use of
flexible labor over the past year accordingly.

of respondents used 
temporary workers in 2022,
up from 57% in 2021.



Businesses have increased their investment in flexible workers as well. The
overall share of temporary workers on payrolls rose from 22% in 2021 to 34%, and
the use of apps and online platforms more than doubled, from 18% to 41%.




QUALITY AND RELIABILITY OF FLEXIBLE WORKERS 
ON THE RISE

Not only are businesses using more flexible workers, they’re also getting more
of the workers they request from staffing agencies or flexible work platforms.
In 2021, only 36% of respondents said the majority of their staffing fulfillment
needs were met. This year, staffing fulfillment has improved and 57% of
respondents say they receive more than three-quarters of the staff they request.

57% of respondents—up from 36% last year—say they receive more than
three-quarters of the staff they request.


Overall, labor supply is becoming less of a challenge when businesses use
flexible labor. In 2021, 53% of respondents cited the availability of candidates
as a top challenge when using temporary labor. This year, only 33% of
respondents consider this to be an issue.

The quality and reliability of flexible workers are also improving. A majority
(65%) of respondents say flexible workers performed as well as or better than
they did in 2021. And training flexible workers has become less of a challenge
for businesses.


“The Instawork team has been amazing. They've made great improvements to our
in-store team and the quality of our work, and have facilitated consistency of
our fill rates.”

Mike Wargocki

VP of Manufacturing


NEED FOR SKILLED FLEXIBLE WORKERS INCREASES

This increase in the reliability of flexible workers—and the industry’s
comfortability with hiring flexible workers—has helped lend businesses a more
optimistic outlook for 2023.

of respondents did not feel prepared to handle 2023 volume with current labor,
versus 14% in 2022.


As more businesses begin to rely on and expand their use of flexible labor,
they’re starting to look for more-skilled workers. While general labor and
warehouse associates are still the top areas where businesses need staff, there
is a growing need for flexible workers in more skilled positions and areas, such
as transportation and logistics, e-commerce, inventory management solutions, and
warehouse management.



These types of skills should not be barriers to using flexible or temporary
workers. Flexible workers who use Instawork’s flexible staffing platform are
more highly educated and skilled than the overall pool of hourly workers.
Furthermore, better prepared workers also receive better ratings in Instawork’s
reputation system, giving businesses the reliability and quality they need to
keep operations running steadily.

 

"Instawork is the sole staffing provider for our warehouse. When we need extra
hands, we want the right folks—those who want the work."

Yves-Car Momperousse

CEO of Kreyole Essence


A MORE STABLE LABOR ENVIRONMENT
 IN THE YEAR AHEAD

As a whole, businesses in the light industrial sector are looking forward to a
more manageable year. Though the labor market in the sector has changed
dramatically, warehouses, distribution centers, and third-party logistics
providers embracing flexibility are often seeing the best outcomes.

As the quantity, reliability, and skill of flexible workers increase, those
using flexible labor will see even more success in staffing and their ability to
navigate an ever-evolving economic landscape.

 

Want to view the full survey results?

Check out the data below.



FIND QUALITY, VETTED WAREHOUSE STAFF 
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