Report Finds Warehouse Staffing Conditions Improving in 2024

Instawork has released its annual State of Warehouse Labor report, revealing that after years of uncertainty, the market for warehouse labor is beginning to stabilize and grow.

This new survey of warehouse business partners across the United States and Canada reveals a more optimistic outlook on staffing compared to 2023. Nearly 40% of operators reported that staffing is becoming easier, although nearly half still experience revenue loss due to shortages. However, this is an improvement from 2022 when 64% of respondents reported significant revenue losses due to staffing issues.

The report highlights that the average hourly pay for warehouse shifts on Instawork has increased by 8% since mid-2020, with further rises of up to 5% anticipated in 2024. Higher pay remains the primary incentive for attracting and retaining workers, with flexible schedules as the second most popular incentive. Interestingly, fewer operators are offering additional incentives compared to last year.

Warehouse operators are increasingly leveraging data-driven insights and AI to improve labor forecasting and operational efficiency. Best practices include offering competitive pay rates, clear job descriptions, and pre-shift training videos to ensure worker readiness. “Our goal at Instawork is to provide the most up-to-date insights into emerging trends, allowing warehouses to optimize their staffing approaches to ensure consistent and efficient operations,” said Kira Caban, Head of Strategic Communications for Instawork.

The report highlights the importance of securing long-term commitments from staff, particularly given the current stability in the labor market. Instawork, founded in 2016, received the 2022 ACE Award for “Best Innovation” and was named one of the “Best Business Apps” by Business Insider.

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