Why Your Warehouse Turnover Is So High And What to Do About It

June 24, 2025

If your warehouse feels like a revolving door lately, you’re not alone. Hiring teams across the country are dealing with a labor pool that disappears almost as fast as it arrives. The issue isn’t just that workers leave — it’s that they leave early, often within their first 30 to 90 days. According to recent data, some regions are seeing warehouse turnover rates topping 40%, far above what most operations can absorb without serious consequences to productivity, training budgets, and morale. While the reasons are often layered, they follow a few predictable patterns. The nature of warehouse work (repetitive, physically demanding, and often lacking in long-term career visibility) means many employees see these roles as temporary stopgaps. And even though hourly wages have climbed significantly over the past two years, that hasn’t been enough to keep workers engaged or loyal. When you add in chaotic scheduling or weak onboarding experiences, it’s no surprise workers are walking away at record rates.

The Real Reasons Workers Keep Leaving

Let’s break this down.

First, there’s the physical toll. Warehouse roles require real endurance, and many employees leave because they simply burn out, especially if shifts change frequently or supervisors push output without checking in.
On top of that, while warehouse pay has increased by about 8% since 2020, it’s still playing catch-up in a competitive labor market. Workers have more options now, and they’re going to take the job that feels more sustainable, even if it’s just by a dollar or two per hour.

Beyond pay and pace, another common driver of turnover is the lack of upward mobility. When workers don’t see a path forward, whether into training, equipment certifications, or supervisory roles, they don’t stay. Culture also matters more than most operations admit. In fact, as many as 30% of hourly hires leave within their first 90 days, and the top reasons cited include poor onboarding experiences, unclear expectations, and feeling like just a number. That’s not a staffing issue; that’s an environment issue and it can be fixed.

The Cost of Turnover Is Bigger Than You Think

There’s no getting around the numbers.

Replacing a single warehouse associate can cost anywhere from $8,500 to $18,000 when you factor in recruiting, lost productivity, training time, and disruption to your existing team. Multiply that by just a few positions, and it’s easy to see how quickly turnover eats into your margins.
Even worse, repeated vacancies often create a cycle where your best team members shoulder the extra load, which leads to more burnout and more resignations.

According to estimates from the Work Institute and SHRM, voluntary turnover across all industries cost U.S. employers over $900 billion in 2023. Warehousing and distribution jobs tend to skew even higher due to the pace of hiring and the difficulty in maintaining quality talent. If your business relies on frequent seasonal staffing, the stakes are even higher. Missed fill rates and slow onboarding can throw off entire production calendars. The good news? The causes of turnover are well-understood, and there are proven ways to reduce it.

Proven Ways to Keep Warehouse Workers Around Longer

Start with pay. Not just wages, but how you present your total compensation. Adding in benefits, bonuses, referral programs, and even same-day pay options can make a big difference. But money alone isn’t enough. Warehouses that retain staff consistently tend to offer something else: a sense of purpose and a path. Upskilling programs, safety certifications, and even small leadership tracks give workers a reason to stay. When people know there’s room to grow, they’re far less likely to jump ship.
Equally important is how you bring people into your team. The first two weeks of employment are when most turnover risk shows up. That’s why the best staffing agencies focus heavily on onboarding and expectations. Workers who feel supported and respected from day one are far more likely to perform…and to stick around. If your warehouse is constantly cycling through new hires, it may be time to rethink how you structure schedules too. Predictable, stable shifts reduce absenteeism and keep morale steady. Flexibility is great, but consistency is what people really want.

Industry Snapshot: The Pressure Is Mounting

Warehousing and logistics roles are expanding faster than most sectors with over 56,000 new jobs added last year alone. And the talent shortage isn’t going away. The U.S. is expected to face more than 2.1 million unfilled supply chain jobs by 2030. That means employers who figure out how to retain their staff today will have a serious competitive advantage tomorrow. It also means that relying on outdated hiring strategies or passive recruiting won’t cut it anymore. Partnering with a staffing agency that understands workforce engagement is no longer a nice-to-have, it’s a business necessity.

So whether you’re managing a local distribution center or scaling a national logistics operation, the turnover conversation needs to stay front and center. The most successful employers aren’t the ones who fill roles the fastest — they’re the ones who fill them right. That’s where working with the right staffing agency can make all the difference.

Let’s Fix the Turnover Problem Together

If you’re tired of rehiring for the same roles over and over again, NEXTAFF can help. We use a proven, data-driven approach to temporary staffing and workforce engagement — especially for warehouse and logistics operations. Let’s talk about how to reduce your time-to-fill, improve retention, and make hiring feel a little less like Groundhog Day. Contact NEXTAFF today! Come explore how our customized staffing solutions can drive your business forward. Learn More About Client Solutions Today!