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Why Warehouse: Part 1 - Pay is on the Rise

Everyone loves when their package finally arrives from their favorite online retailer, but do you ever wonder who fills that box? For most companies, there’s an army of workers who are involved in fulfilling your order, from one end of the warehouse to the other.

And until lately, there have been plenty of people to fill those warehouse jobs. However, with unemployment nearing a 10-year low, many companies are struggling to find people to cover their warehouse shifts in order to meet rising consumer demand.

In this three-part series, we’ll take a look at the current state of the warehouse industry, and why it’s a good time to take a look at potential openings available in your area.

Part One: Warehouse Pay is on the Rise

Warehouse workers are increasingly in high demand. Because of this, compensation for this type of work is on the rise.

According to this recent article in the Wall Street Journal, “starting pay for warehouse workers rose 6% over the past year, compared to a 2.8% increase across all professions.” In February, ProLogistix, a logistics staffing firm, cited warehouse worker pay was at an average of $12.15 - well above the current minimum wage across all states.

And this increase in pay will likely continue. The record-low unemployment rate means that workers can afford to be more choosy about the type of work they take on, and employers are responding with higher pay rates.

Shiftgig and Warehouses

In many of our key markets - including Atlanta, Chicago, Dallas, and Phoenix, just to name a few - our clients are using the Shiftgig app to connect workers with their open warehouse shifts.

According to Jennifer Van Eck, Shiftgig’s Senior Vertical Manager, the employers who are using our app to fill positions are offering higher pay and a better work experience to entice workers.

Here are a few key insights from Van Eck about the industry today:

  • Family-owned businesses with warehouses typically provide an environment that values employee engagement -- and they often pay higher rates.
  • With so many open warehouse roles, workers have many options to choose the location of the warehouse where they pick-up work.
  • Warehouse work typically has a more traditional schedule (think Monday through Friday, or three times a week, instead of the occasional shift here and there). For those looking for a steady stream of work, this might be ideal.
  • The trend of higher hourly wages, combined with companies that put workers first, will hopefully encourage potential and current Shiftgig Specialists to try warehouse work.

Stay tuned for Part 2 and Part 3 of this series that will discuss why warehouse demand isn’t going anywhere, and why you might already be qualified for this line of work. 

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May 11, 2017 | Leslie Boehms