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The Hidden Cost of In-House Hiring: Why More DCs Are Turning to Managed Labor

Written by FHI | Apr 14, 2025 2:05:27 PM

Every distribution center (DC) leader wants a reliable, high-performing workforce. But if you’re still relying on internal hiring to build and maintain your warehouse team, you may be paying more than you realize—for less than you deserve.

With rising turnover rates, increasing onboarding costs, and constant pressure to hit KPIs, more DCs are rethinking their approach. That’s why a growing number of operations leaders are turning to managed labor solutions to regain control of performance and productivity.

 

In-House Hiring Is Costly, Time-Consuming, and Risky

The hidden costs of recruiting and managing an in-house warehouse team are stacking up:

 

Time-intensive hiring processes eat up HR and management bandwidth

High turnover forces repeat training and disrupts shift consistency

Compliance and injury risks increase without proper onboarding and safety oversight

Low accountability from temporary hires with no long-term investment in the company

 

According to recent industry reports, it can cost up to $5,000 to hire and train a single warehouse worker—only for many to leave within 90 days. That cycle drains resources and disrupts operations.

 

A Smarter Workforce Strategy with FHI

At FHI, we believe your operation shouldn’t have to choose between performance and peace of mind. Our managed labor model is designed to take the burden off your internal teams while ensuring a high-performing, reliable workforce.

 

Here’s how we do it:

 

Dedicated workforce management: We handle recruiting, training, and onsite supervision

Scalable staffing: Flex labor levels up or down with demand—without restarting the hiring process

Lower turnover: Our associates are trained, coached, and supported from day one

Built-in compliance and safety: We lead with best practices that protect your people and your operation

 

We don’t just fill roles—we manage outcomes.

 

Free Your Team to Focus on What Matters Most

When you partner with FHI, we help you simplify and strengthen your workforce strategy:

 

  1. Schedule a complimentary labor strategy review

We'll evaluate your current challenges and highlight immediate opportunities.

 

  1. Receive a custom deployment plan

We’ll design a labor solution tailored to your volume, shifts, and performance goals.

 

  1. Experience the FHI difference

Our onsite leaders and trained associates hit the ground running—and keep performance consistent.

 

High Performance Without High Burnout

Imagine a DC where staffing doesn’t drain your time or your budget. Where labor costs are predictable, compliance is baked in, and every shift is staffed with people who are trained, motivated, and managed for results.

That’s the power of a trusted managed labor partner.

Tired of the hiring hamster wheel?

Let’s talk about how you can reduce costs and increase performance with a smarter labor model.

Schedule your complimentary consultation today.