WorkStep's Dan Johnston: How to Retain Your Frontline Worker

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In episode 138 of the Love in Action Podcast, I had the privilege of speaking with Dan Johnston, co-founder and CEO of WorkStep. WorkStep is the leading workforce hiring and retention platform for supply chain.

I brought Dan to the podcast to discuss recent data released by WorkStep based on feedback from 18,000+ employees from 155 leading supply chain companies. Pretty revealing findings, including lack of career growth being the #1 reason for turnover. This may come as a shocker to the Amazons of the world that believe cash is king.

The supply chain workforce shortage is a household problem these days. Empty shelves, late deliveries and out-of-stock supplies are affecting the entire nation. Much of it is rooted in one simple fact: brands can’t hire and retain enough frontline workers.

With turnover hitting over 55% in 2021, businesses are trying to better understand the hourly employee. Major retailers like Amazon and Walmart are offering higher pay, sign-on bonuses and other incentives to attract and keep their workforce. Despite it all, Amazon’s average?warehouse worker still leaves within just eight months.

So, what exactly are truck drivers, warehouse workers, seafarers and more looking for? This is the problem WorkStep is addressing and we discuss it in great detail in the episode.

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Key Show Highlights

• On WorkStep's mission: “At WorkStep, we help large companies better hire and, most critically, retain the frontline workforce across their supply chain. We empower companies with software that helps them source better fit hires and help them understand why their employees are leaving, what they can do about it, and how they can measure the impact of those initiatives… It’s a win for both sides,” says Dan, discussing the role of WorkStep.?
• What frontline employees really want: “The top driver of turnover is career growth. Those employees who don’t feel like their company is investing in them in the same way they are investing in the company, who don’t feel there are opportunities to grow their skills, grow their wages, and grow their careers within an organization, are the employees who are most likely to quit. Those workers who are most aligned to that growth pathway are most likely to stay,” Dan says. According to WorkStep research, the desire for career growth is the number one driver of employee turnover.?

• On pay: Workforce shortage caused companies to compete for workers with record pay raises and hiring bonuses. As a result, employees are raising their expectations.
• On unmet expectations: “What tends to drive people to quit is when things are different than what they expected.” Dan remarks that problems arise when employees encounter unforeseen issues in new roles.?
• On new employee onboarding: “Especially when we’re talking about the frontline industries, with very high turnover, that new hire period is going to be very critical. Many organizations lose half of their new employees during those first 90 days.” Dan points this out to discuss how leaders should focus on the new hire period.?
• Acting on feedback: “Whether you buy from WorkStep or not, ensure that you’re listening to the voice of your frontline associates, analyzing what they’re saying objectively (and ideally, in real-time), and acting on the true drivers of turnover.” Dan recognizes that this is the singular strategy for fighting turnover.?
• The moral and ethical obligation to fighting turnover: “You can save money on turnover… But it’s also the right thing to do. You, as a leader, have the opportunity to do something that improves the job (and therefore the life) of thousands, tens of thousands, hundreds of thousands of?workers.” Dan ends with some important info – fighting turnover is a good business decision, and an ethical one too.?

Listen on?Apple Podcasts?|?Spotify?|?Google Podcasts

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About the Show

The?Love in Action Podcast?inspires leaders to reimagine the conditions necessary for creating human-centered and humane workplaces to help human beings flourish. Episodes are published every Thursday and can be heard on your favorite podcast platform. If you like what you hear, be sure to?leave us a review!

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About Marcel Schwantes

Marcel Schwantes?is a global leadership expert, speaker, executive coach, author, podcast host, and syndicated columnist. He develops emerging leaders through his signature virtual course, "From Boss to Leader." His work has been featured in Inc., Business Insider, Fast Company, The New York Daily News, CNBC, Forbes, and others. He speaks to audiences about the human side of work, and how cultures of care, connection, and belonging outperform the competition.