One phenomenon shaping the economy is the continued high rate of job resignations, known as the “Big Quit.” Despite advances in automation, supply chains are vulnerable to staff shortages in manual material handling and trucking. Wage increases will help retain workers, but foundational labor standards such as shift duration and scheduling practices will have greater impact.
Staff shortages have hit nearly every industry in the past year, but they’re particularly impactful to supply chains. According to the Harvard Business Review, 37% of all jobs in the U.S. are in supply chain. HBR also notes that supply chain jobs “have significantly higher than average wages.” Even so, LinkedIn reported 224,000 supply chain job openings in late 2021.
Three strategies are available to address the resource gap in supply chain:
- Improve retention
- Improve recruiting outcomes
- Increase part-time resource utilization, e.g. converting part-timers to full-timers
Of these three strategies, increasing part-time resource utilization often garners the least attention. Part-time labor is generally perceived to have higher turnover and lower commitment. A review of the U.S. Bureau of Labor Statistics, however, indicates that nearly 6 million workers hold full-time and part-time employment or work more than one part-time job. Two or more jobs suggests a need for higher personal income; supply chain firms may do well to attract this type of motivated employee.
While employment best practices in the context of the Big Quit typically include flexibility, attracting and retaining skilled part-time staff hinges on predictability and employment efficiency. Predictability includes consistent work schedules, while employment efficiency is the ratio of compensation to the total cost of working — including commute time and expense, unpaid breaks and child or elder care.
Specific tactics and strategies to attract workers include:
- Improve workforce demand forecasting and planning. Forecast and plan labor with the same accuracy as other supply chain components.
- Increase minimum notice required for schedule changes. Better forecasting drives more predictable schedules with fewer last-minute changes. Schedule changes without notice motivate workers to seek employment elsewhere.
- Increase shift minimums. In many jurisdictions, minimum shift duration is three hours. If commute time is, for example, 45 minutes, then one-third of the total time associated with work is unpaid and unproductive. Employers cannot control commute times, but they can increase minimum shift duration to make employment more economically efficient.
- Increase minimum time between shifts. If the minimum time between shifts is 8 hours, employees may be getting by on 5 hours of sleep or less. Increasing time between shifts improves quality of life and may improve workplace safety.
- Create set shifts to target specific groups. A set shift from 9 a.m. to 2:30 p.m., for example, will be attractive to parents with children in school, school bus drivers and split-shift public transit staff.
- Understand that not everyone works one job. Recruit and plan for multi-job part-timers. Their motivation can be your advantage.
Outlook:
Supply chain managers need to define and execute new strategies to attract and retain staff, and predictable and efficient work schedules will be a key differentiator.
Tony Gray is director, Supply Chain as a Service, at Tata Consultancy Services (TCS).
