Workforce turnover in the supply chain industry has reached critical levels, impacting productivity, recruitment costs, and overall operational efficiency. According to the 2025 Supply Chain Workforce Survey, a staggering 64% of supply chain workers are actively seeking new opportunities, and another 25% are open to offers, putting nearly 89% of jobs at risk.
A friend, Christopher Wuest at Onward Robotics, recently sent me an article on this topic, published in R.S. Hughes, “What is Driving Workforce Turnover in Supply Chains,” which prompted me to explore it further. As someone deeply involved in workforce management, I see how this data impacts supply chains and workers.
This article explores the key causes of workforce turnover, how it disrupts operations, and methods businesses can adopt to boost retention and stability.
The Drivers Behind Workforce Turnover
Promoting high achievers into management roles seems logical, but it can be a misstep for many employees. When companies push leadership roles on those who aren’t interested or lack the necessary skills, it can lead to:
Lack of Career Advancement Opportunities
23% of respondents pointed to limited career growth as a key reason for leaving their jobs, making it the biggest factor behind workforce turnover. When employees do not see clear paths for advancements, they can feel stuck and unmotivated. The lack of progression directly impacts retention, as employees seek roles that align with their career aspirations elsewhere.
Employee Burnout
Long hours, monotonous tasks, and high-pressure work environments are major contributors to burnout, which ranks among the top three causes of turnover. Signs of burnout, like increased absenteeism and low morale, often indicate deeper issues within the organization.
Lack of Desirable Shift Schedules
When it comes to shift scheduling, workers prioritize it even more than pay or benefits, accordion got the survey. Stable shifts are essential for employees to maintain a healthy work-life balance. Notably, 30% of workers prefer 10-hour shifts over the traditional 8-hour model.
Insufficient Training
Almost 14% of the workers surveyed felt they were not adequately trained for their roles. Without proper training, employees can quickly feel overwhelmed and undervalued. A lack of preparation not only affects job satisfaction but also overall performance.
Rising Costs and Competition
The current labor market is competitive, meaning even a small pay increase from a competitor can lure away your best talent. In fact, 34% of employees would consider leaving their job for just $5 more per hour.
Strategies to Improve Workforce Retention
Combatting the issue of supply chain turnover calls for a well-rounded approach that puts employee satisfaction, growth, and well-being front and center. Here are methods to consider:
Optimize Shift Scheduling
Scheduling stability ranks among the top priorities for supply chain workers. Providing flexible shifts, such as 4-day, 10-hour workweeks, which 30% of workers prefer, can improve work-life balance and job satisfaction.
Create Career Growth Opportunities
Showing that you are invested in your employees’ growth can make a big difference in reducing turnover. Employers should provide their teams with the right tools and skills to succeed, which can be shown through offering on-the-job training, mentorship programs, and clear paths for advancement. Not only does this boost employee confidence, but it also helps build a strong internal talent pool.
Building a Positive Workplace Culture
Workplace culture matters more than ever, with 89% of workers evaluating it before accepting a job offer. A culture that emphasizes support and respect often outshines financial incentives. Open communication, frequent recognition, and strong leadership can build an environment where employees feel appreciated and motivated.
Prioritize Burnout Prevention
Companies need to focus on workload distribution and mental well-being to address burnout. For example, setting realistic expectations for shifts and avoiding mandatory overtime. Promoting mental health resources, encouraging time off, and nurturing a culture that values well-being can make a notable difference. Employees who feel supported are much more likely to remain engaged and productive.
Competitive Pay
While pay ranked lower than other factors for retention, it remains a strong consideration. The survey revealed that 28% of workers would contemplate leaving for just $1-2 more per hour. Employers should regularly review market rates to remain competitive and offer raises tied to performance and tenure.
The Supply Chain Labor Market
As we look back at April 2025, U.S. supply chains were facing labor shortages, increased costs, and operational uncertainty. The U.S. unemployment rate held steady at 4.2%, but supply chain disruptions and competitive pressures have left many companies struggling to attract and retain talent.
For instance, the transportation and warehousing sector added 29,000 jobs in April, reflecting the immediate demand for logistics roles. Still, economists are cautioning that this might hit a wall unless companies make real improvements in workplace conditions and how they retain their employees.
Looking ahead, projections indicate that by 2030, there could be as many as 2.1 million manufacturing jobs left unfilled, which will only add to the pressure on supply chain employers to develop effective retention strategies.
How ShiftSwap™ Supports Retention Goals
Modern supply chains require tools that cut through the complexity and enable employees to excel. ShiftSwap™ is a platform that addresses workforce challenges and improves employee retention by:
Decreasing Labor Costs
- Automating scheduling to minimize inefficiencies and wipe out unnecessary overtime.
- Optimizing Voluntary Time Off (VTO) processes to keep labor balanced during slow periods.
- Aligning labor supply with demand, ensuring you are never overstaffed or understaffed.
Improving Employee Morale
- Giving employees more control over their shifts leads to greater job satisfaction and a better work-life balance.
- Enhancing open communication between management and teams, which creates more transparency and trust.
- Using workforce reports to spot gaps, enhance efficiency, and proactively address employee concerns.
Adding Flexibility to the Workforce
- Enabling quick shift changes to adapt to changing demand, with the chance to grab extra shifts when posted by employers.
- Equipping workers with the tools to easily post shifts for coverage, pending management approval.
- Streamlining communication to keep teams and individual workers stay informed and on the same page.
By adopting workforce management solutions, companies can reduce turnover while boosting productivity and morale.
Producing Long-Term Workforce Loyalty
Addressing the issue of workforce turnover in the supply chain demands swift action and commitment to long-term improvements. Companies that genuinely focus on their employees’ needs, through fair pay, training, and supportive leadership, will see gains in retention and efficiency.
Let’s learn from the data and take meaningful strides toward stabilizing our workforce. Together, we can build stronger, more resilient supply chains while empowering our workers to shine in their roles.
Would you like to explore how ShiftSwap™ can support your workforce management goals? Schedule a demo today and see the difference proactive workforce solutions can make!
Start Planning for Success
Schedule a demo with ShiftSwap™ today and learn how to streamline your workforce management.