Why Are Frontline Workers Really Quitting? You Can Boil It Down to 1 Simple Fact

The supply chain workforce shortage is a household problem. Empty shelves, late deliveries, and out-of-stock supplies are affecting the entire nation. Much of it is rooted in one simple fact: brands can’t hire and retain enough frontline workers.

With turnover hitting over 55% in 2021, businesses are trying to better understand the hourly employee. Major retailers like Amazon and Walmart are offering higher pay, sign-on bonuses and other incentives to attract and keep their workforce. Despite it all, Amazon’s average warehouse worker still leaves within just eight months.

So, what exactly are truck drivers, warehouse workers, seafarers and more looking for? To find out, WorkStep — a supply chain hiring and retention platform — asked them.

According to over 18,000 frontline workers across 150 companies, lack of career growth is the #1 reason for turnover. This may come as a shocker to the Amazons of the world that believe cash is king.

Sure, pay is important — it comes in at #2 — but money alone isn’t talking. And in Q3 2021, pay wasn’t even in the top five reasons for quitting. Hourly workers aren’t looking to just clock in, clock out and cash their checks. They are looking for a meaningful career.

So why are companies investing millions in higher wages if it only solves a part of the problem? According to Dan Johnston, co-founder and CEO of WorkStep (and former warehouse manager), the problem boils down to listening.

“Many brands assume it’s all about pay — which is an expensive and incorrect assumption to make,” said Johnston. “There is so much more at play. We’ve found that very few organizations properly engage their employees, and collect and act on meaningful feedback. The typical management team at a Global 1000 is completely in the dark on what matters to their frontline workers.”

Case in point: scheduling. Supply chain and logistics roles are known for grueling schedules and late shifts. Management teams often believe scheduling to be a roadblock for hiring and retention. As a result, many companies are touting better shifts and flexible working hours in the hope it attracts more workers.

Will this strategy alone work? According to Johnston, it’s doubtful. WorkStep’s research shows scheduling isn’t even in the top 10 list of turnover drivers.

These assumptions are expensive. The average cost of losing a frontline worker is $12,876. In fact, the cost can exceed $45,000 for more skilled roles. Johnston estimates that a whopping 75% of turnover could be prevented if companies knew the real pain points within their organization. “Most simply aren’t listening,” said Johnston.

The supply chain workplace can be isolating. Drivers hit the road in solitude. Warehouse employees work alongside machinery. There is an obvious need for engagement – but management often struggles to collect, listen and respond to worker feedback.

Many supply chain workers go months without a check-in, which means managers go months without feedback. No roadmaps for career progression are established. And most importantly, no mutual understanding of the employee experience is created.

The supply chain workforce shortage is a complex problem. Is the solution as simple as listening? The data shows it’s possible — and tech can help. Anonymous feedback platforms are proven to resolve 36% of turnover issues and produce happier, more productive, long-term employees.