Colorado's labor market is in a tough spot right now. With about 190,000 job openings and only 95,000 unemployed workers actively looking for jobs, it’s clear there's a significant gap.
(https://coloradosun.com/2023/08/19/colorado-job-openings-unemployment-slow/) (https://coloradosun.com/2022/08/06/employers-labor-shortage-jobs-decline/)
This shortage is putting a lot of strain on businesses, especially those running distribution centers that rely heavily on a steady workforce to keep things moving smoothly.
The Challenge for Distribution Centers
The job openings rate in Colorado is higher than the national average, which means employers are struggling more than ever to fill positions.
(https://www.uschamber.com/workforce/the-states-suffering-most-from-the-labor-shortage)
This is particularly challenging for distribution centers that need reliable staff to handle second and third shifts. These off-hours shifts are notoriously difficult to fill with in-house staff due to lifestyle preferences and the physical demands of the work.
The Solution: Partnering with FHI
This is where FHI, a managed warehouse labor service provider, can make a real difference. FHI specializes in providing skilled labor tailored to the specific needs of distribution centers, ensuring that inbound and outbound operations run smoothly around the clock. By partnering with FHI, distribution center operators can reap several key benefits:
Filling Hard-to-Staff Shifts: One of the biggest advantages of outsourcing labor to FHI is their ability to fill those hard-to-staff second and third shifts. Unlike in-house hiring, which often struggles with finding willing candidates for these shifts, FHI specializes in staffing these challenging time periods.
Boosting Productivity and Efficiency: Outsourcing to FHI can lead to significant improvements in productivity and efficiency. FHI’s workers are trained and experienced in handling the specific demands of distribution centers. This means they can hit the ground running, reducing the time and resources spent on training and onboarding new hires.
Cost Savings: Hiring in-house comes with a lot of hidden costs – from recruitment and training to benefits, worker’s comp and overtime. By outsourcing to FHI, we assume these labor-related costs. FHI takes care of all the administrative burdens, allowing operators to focus on what they do best: running their business.
Flexibility and Scalability: The needs of distribution centers can fluctuate based on seasonality and market demand. FHI offers the flexibility to scale the workforce up or down as needed without the long-term commitment that comes with in-house hiring. This adaptability ensures that distribution centers can respond quickly to changing demands without being overstaffed during slower periods.
A Real-World Impact
The labor shortage isn’t going away anytime soon. By partnering with FHI, distribution centers in Colorado can navigate this challenging environment more effectively. FHI’s ability to provide a reliable, efficient, and cost-effective labor force makes them an invaluable partner. Whether it’s filling those tough-to-staff shifts or boosting overall productivity, FHI stands out as a solution that can help distribution centers thrive even in the face of a labor crisis.
Outsourcing warehouse labor needs to FHI can provide the stability and efficiency to the supply chain, allowing customers to stay competitive in today’s challenging job market. With the right partner, overcoming the labor shortage becomes a manageable task rather than a constant struggle.
FHI, a leader in the managed warehouse labor space, brings over 30 years of experience servicing top-tier customers. With warehouse associates deployed across the U.S., FHI stands as a beacon of reliability and expertise, providing scalable and efficient workforce solutions that can drive significant operational improvements in the discount retail sector.
For additional information about FHI’s Managed Labor Solutions, visit us online at FHIWORKS.com.
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