Lately, we’ve been fielding lots of questions about employee turnover rates and warehouse associates’ pay rates, especially after a peak holiday season when competition for labor was at an all-time level of frustration – unfilled positions and low retention. Wage pressure and availability of labor is top of mind with many companies.
What does this mean for you? Now is the time to start thinking about how to increase warehouse-associate productivity to counterbalance the necessitated increase in pay and in numbers.
Think Best Way
You have a plethora of ways to achieve this end, but one of the most effective is to teach warehouse associates to use better methods. Creating a good labor standard—a best practice or “best way”—is hard when everyone does the job in a different manner. First, specify a best way to do a job. Then, develop the standard around people following it.
Consider training associates in the finer motions of a warehouse job. For instance, teach a packer to pack a box just like you would teach a child to throw a baseball or perform a dance movement. Break it down into steps, emphasize the importance of each step to the desired end, and practice, practice, practice.
Crowd Engineering is a relatively new means for discovering best-way techniques to teach. The process is based on three assumptions:
What Our Experience Has Taught Us
TPG has learned that videoing different associates doing their jobs and using software to help us compare them as they complete each different step in the process is invaluable to a Crowd Engineering effort.
By comparing how Sally seals a box to how Bill does it, we learn how the various nuances each has developed has impacted—both good and bad—their efforts. Then we pick the best method of sealing a box (usually in a room with a large monitor, a bunch of associates, and a whole lot of discussion).
Next, we create videos and/or webinars instructing associates on how to do each step in the approved best method. (Often, we also include clips showing how not to do a particular step and why.) These videos become the basis of a real training program as opposed to the usual on-the-job instruction.
The result? We consistently identify 10% to 30% improvement in labor productivity via Crowd Engineering, affording you the ability to handle warehouse associate pay increases today and beyond.
How’s that for results?
As of September 8, 2020, Crimson & Co (formerly The Progress Group/TPG) has rebranded as Argon & Co following the successful merger with Argon Consulting in April 2018.