How to Choose the Right Third Party Labor Management Provider [7 Key Questions to Ask]

So, you’ve decided that partnering with a third-party labor management provider might be a smart move for your warehouse.

But now comes the hard part:

👉 How do you pick the right one?

Not all providers are created equal. Some will send people and disappear. Others will embed as a true partner and help your operation thrive.

To help you separate the great from the so-so, here are 7 key questions you should be asking when choosing a third-party labor management provider. 📋


1️⃣ What is their track record with facilities like mine?

Experience matters—especially when it comes to managing labor at scale. Ask:

Have they worked with similar-sized operations?

Do they understand your industry’s compliance and workflow needs?

Can they provide references or case studies?


Look for a proven history of supporting DCs with your level of complexity.


2️⃣ How do they align labor performance with my KPIs?

The right provider should not just “send people”—they should be focused on driving outcomes that matter to you:

Units per hour 📦

Order accuracy rates ✅

On-time shipments ⏰

Safety metrics 🦺


If their performance isn’t tied to your success, that’s a red flag 🚩.


3️⃣ What does their onsite management model look like?

Ask them to walk you through exactly who will be onsite, what roles they will fill, and how they’ll coordinate with your leadership.

A true third party labor management provider brings dedicated supervisors and leads—not just a revolving door of workers.


4️⃣ How do they ensure consistency across shifts?

Inconsistency between shifts is one of the top frustrations in warehouse operations. The right partner should be able to:

Train to a common standard 🏋️

Track shift-level metrics 📊

Provide consistent supervision 🕵️

Rotate talent effectively if needed 🔄



5️⃣ What is their safety philosophy?

If safety isn’t a core focus of their model—run. 🚪

Look for providers who:

Provide comprehensive onboarding safety training

Conduct daily safety briefings

Maintain a culture of accountability and compliance


Safety must be baked into their DNA, not bolted on.



6️⃣ How do they handle workforce scaling and turnover?

Ask:

How quickly can they ramp up labor for a peak season? ⏫

How do they manage worker turnover? 🔁

What retention strategies do they use? 🏅


A strong partner should give you flexibility—without sacrificing stability.



7️⃣ How transparent is their reporting?

You should never be left in the dark about labor performance. A modern third-party labor management provider will offer:

Real-time dashboards 📊

Regular review meetings 🤝

Open communication channels 📞


If they aren’t committed to transparency, proceed with caution.


Choosing a True Partner

Selecting the right third party labor management provider is about more than filling seats. It’s about finding a team that:

✅ Understands your business
✅ Shares your priorities
✅ Delivers results—not just bodies

Ask the tough questions. Hold them to a high standard. And when you find the right fit—you’ll wonder how you ever operated without them. 🚀


Ready to see what a true labor partnership looks like?

We’d be happy to answer your questions, too.

📅👇 Schedule your complimentary Workforce Strategy Session today. 👇📅