Are there hidden costs when hiring labour for logistics & warehousing?

When it comes to staffing your warehouse or logistics operation, the true cost of labour extends far beyond the hourly rate you pay your workers. Understanding these hidden costs is crucial for accurate budgeting and making informed decisions about your workforce strategy.

Direct recruitment comes with significant hidden expenses that many businesses overlook. The time spent advertising positions, screening applications, and conducting interviews can add up quickly. Then there’s the onboarding process, including induction training, workplace health and safety briefings, and the inevitable learning curve as new staff become familiar with your systems and procedures.

Administrative overhead is another substantial hidden cost. Processing payroll, managing leave entitlements, handling superannuation, and ensuring compliance with relevant awards and workplace legislation all require significant time and resources. There’s also the ongoing cost of managing performance, addressing attendance issues, and coordinating shift coverage when staff are unavailable.

Equipment and training represent another often-overlooked expense. Providing necessary safety gear, uniforms, and training for specific equipment like forklifts or warehouse management systems adds to the total cost of employment. Regular refresher training and updating certifications also need to be factored into your budget.

This is where partnering with a professional labour hire company such as DSC can actually save money in the long run. While the hourly rate might appear slightly higher at first glance, it includes many of these hidden costs. Labour hire companies handle recruitment, training, administrative tasks, and compliance requirements. They also manage worker replacement when someone is sick or unavailable, ensuring your operations continue smoothly.

When comparing costs, remember to factor in these hidden expenses. The apparent savings of direct hiring often disappear once you account for the full range of associated costs. 

A professional labour hire partner can provide a more predictable and often more cost-effective staffing solution for your logistics and warehousing labour needs.