– Supply Chain Insight –
Fishbone Friday: High Direct Labor Turnover
Direct labor turnover
Welcome supply chain leaders, to the fourth edition of Fishbone Friday!
If you missed last week’s edition where we discussed possible root causes for a high or increasing cost per case, you can find it here.
Let’s get into the topic of the week: high direct labor turnover. Most seasonal distribution operations will rely on temporary personnel to fill labor gaps from time to time – especially during peak periods – and, although top performers are sometimes offered full-time roles, turnover at this level is not only expected but is a part of the deal. Turnover is something distribution executives have to live with, even in more senior roles; however, a consistently high (or increasing) turnover rate in is often just a critical symptom of a much larger problem within the operation.
A high (or increasing) turnover rate doesn’t just cause headaches for hiring managers, it can throttle productivity, lower morale and increase overall labor spend.
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