Survey on front-line labor: 72% increased pay as part of staff retention efforts in 2021

Instawork, a flexible work marketplace for warehouse and logistics businesses across the U.S., announced today its study called “The State of Warehouse Labor Report,” highlighting trends in staffing and retention efforts for the warehouse and logistics industry.

Despite being over two years into the Covid-19 pandemic, 60% of light-industrial businesses reported struggling to keep up with increased demand in 2021, the survey found. 75% of these businesses also don’t feel fully prepared for business demands in 2022.

Staff retention continues to be a challenge amidst ongoing labor shortages, with 31% of survey participants reporting having to forego business in 2021 due to lack of workers. Only 39% of those surveyed focused on hiring new staff, while 72% increased pay as part of staff retention efforts. The average raise was $2.54 per hour for most light-industrial hourly full-time staff.

“We regularly hear from the hourly workforce about the critical need for work flexibility, higher pay, and opportunities for career growth,” said Kira Caban, Head of Strategic Communications for Instawork. “Addressing these needs will be critical for the industry to attract and retain the staffing necessary to stay on top of record levels of customer demand.”

As these businesses look ahead to the remainder of 2022, fewer than 50% of surveyed companies are investing in flexible scheduling and career development, despite being a top request from workers. Additionally, only 18% of respondents are currently leveraging technology to address their ongoing staffing needs, this provides increased opportunity to improve operational efficiencies and attract and retain top talent, Instawork added.

This latest report, which can be accessed here, comes less than six months after Instawork raised $60 million in Series C financing and exceeded its goal of adding 100,000 new app users (Pros) to its platform this fall.