Temporary talent attrition is extremely costly.
It is just as expensive to lose temporary personnel as it is when you have high-level full-time talent leave. So much so that talent churn when you’re working to grow your business with the help of a temporary workforce can completely wipe out any profit from that business growth.
Don’t believe it? It costs more than $8,361 to replace one worker, according to 2024 research. This includes:
- $2,529 to recruit, hire, and train
- $5,830+ in missed revenue and underutilized resources
In addition, it takes six months to break even on recruiting costs for each new hire.
Those numbers are financially focused. But in addition, regular employee churn can lead to:
- Higher overtime costs to cover vacant shifts.
- Burnout for talent who work longer hours to cover unfilled shifts, which can prompt those workers to leave as well.
- Full-time team members may need to take time away from their duties to fill in for missing temporary talent.
Why temporary warehouse workers leave their jobs
Warehouse employment grew steadily—and massively—during the pandemic, breaking record after record.
A lot of that employment growth was in the form of adding temporary logistics/warehouse/e-commerce and even contact center staff to handle the work needed to get online purchases delivered to consumers’ homes or offices.
And because there was such high demand for talent, many companies raised their pay rates to attract hard-to-find workers.
Many of those same workers started a temporary position and then left quickly when they found another position that paid more.
Yet pay rates aren’t the only reason short-term talent leaves: our Voice of the American Workforce survey showed that hourly workers leave because they feel their employers don’t treat them well.
This includes contract and temporary talent. We have seen it first-hand: if our clients don’t pay what talent feels is a fair wage, they walk quickly to another assignment at another staffing service. How quickly? They may leave the next day. Perhaps a week if they dislike the assignment or the client’s atmosphere.
Real-life success story
One of our clients enjoys a terrific temporary talent retention rate because they treat this workforce segment as they do their permanent employees. They take part in all activities and fun perks that in-house employees do. The company culture is fun and engaging; talent enjoy dress-up days and themed competitions.
Pay attention to—and provide—the things that really matter to your temporary workforce members.
A checklist on how to retain temporary employees
Understanding how to retain temporary employees is something the Employbridge research team studies in its Voice of the American Workforce survey.Our employees tell us that they are more likely to keep working for a client if it does some or most of the things that really matter, such as providing:
- Market-rate wages
- Guaranteed pay rates (no hidden fees for equipment, etc.)
- Job security: promise—and deliver—assignments that are a set number of weeks, and make sure the assignment is that length
- Shift and schedule start times that are convenient for the talent
- A clean and safe work environment, particularly for logistics and warehouses. Think light, bright, and inviting
- Break rooms and guaranteed lunch breaks/times
- Incentives such as on-time arrival, no missed days, and staying the entire length of the assignment
- Solid safety precautions and programs
- Positive Indeed and Google employee and talent reviews
- Open and always honest communication between the staffing company, its client, and its on-site workers
- Opportunities for advancement
Also, let them know—if true—that you hire on to your payroll some of the people who work for you temporarily. Clearly explain these parameters: how many people you hire, when you hire them, and what team members must show you to become hired. Even if you can’t hire people as your employees, discuss if and when assignments might be extended, and for how long.
Learn more about what Employbridge does to retain employees
At Employbridge, we invest in talent retention because it helps us – and our clients – maintain productivity levels and achieve organizational goals. We provide competitive benefits and a comprehensive training program to ensure our talent are engaged, motivated, and prepared to succeed in their roles.
Contact us to learn more about Employbridge solutions or to schedule a consultation.
