Record-high wages are failing to prevent supply chain workers “quitting in droves”, according to research.
Software provider WorkStep found wage increases were failing to impact climbing employee turnover rates, and there is a “major disconnect between what employees want and what employers think they want”.
The company found 75% of frontline worker turnover could be prevented if companies had better insight into the top reasons behind employee resignation.
Dan Johnston, CEO and co-founder of WorkStep, told Supply Management: “Wage increases have not been sufficient in reducing frontline employee turnover. Despite compensation hitting historic highs in 2022, hourly supply chain workers are still quitting in droves. Our data shows that there is a major disconnect between what employees want and what employers think they want.”
Johnston explained 40% of supply chain workers said management never asked for feedback, and those that do don’t do anything with it. WorkStep found 70% of frontline workers felt as though their voices were not being heard.
“The advice I’d give to supply chain employers is this – listen to your frontline workers and take action on what matters to them,” Johnston said. “If you are asking for feedback just to check it off your list, you can expect turnover rates to continue to climb. Raising pay is important in today’s economy, but it’s not enough.
“It’s time for supply chain employers to understand that their frontline employees want more than a clock-in, clock-out role. They want a career with opportunity to thrive. To overcome the workforce shortage, businesses must listen to and invest in their people.”
In the survey, involving 19,620 employees across 165 supply chain companies, WorkStep identified the top reasons for people leaving:
1. Career growth
5. Job expectations
8. Manager relationship
10. Manager expectations
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