6 Questions With … Joe McManus

The backbone of the supply chain is the warehouse. Efficient warehouse operations move product effectively, reduce excess inventory, and help drive improvements to the bottom line. But, if the warehouse is the backbone of the supply chain, the people inside the warehouse are a key factor in its success.

Joe McManus, vice president of sales, SMB at Körber Supply Chain Software, stopped by to discuss the role employee engagement plays in retention in warehouses. He notes that gamification is proving a valuable tool in improving that engagement and retention and driving more efficient and productive warehouse operations in the 6 Questions With … profile.

SCMR: What is the current state of employee engagement and retention in warehouses today? 

McMANUS: Employee engagement and retention are two of the biggest, most limiting hurdles for supply chain operations today. According to Körber Supply Chain Software, 1 in 3 supply chain professionals admit they turn over at least 50% of their warehouse staff each year. With baby boomers retiring, this talent void will likely only grow, especially given millennial and Gen Z workers seemingly don’t share the same enthusiasm for blue collar work.  It’s increasingly apparent that supply chain leaders must evolve with the times, and it starts with increasing employee engagement, which in turn, will improve retention. 

SCMR: How are businesses transforming their operations to counteract the standing engagement and retention issues? 

McMANUS: When workers fall short on day-to-day deliverables, business results often fall short too. Unengaged employees are interrupting business operations and ultimately, this affects the bottom line, costing organizations a collective $8.9 trillion in lost productivity, according to Gallup’s recent report. A well-functioning warehouse is vital to maintaining a strong brand image and instilling motivation in warehouse workers is the recipe to success. This can be done via creative tactics, like gamification, which introduces game-design elements to the workplace and offers employees a sense of achievement and greater day-to-day satisfaction. Data shows gamification can up productivity by 50% and increase employee engagement by 60%.   

SCMR: More specifically, how does gamification play a role in enhancing worker engagement and satisfaction?  

McMANUS: Worker engagement and satisfaction can’t be increased overnight, but a great first step is increasing stimulation and interaction in the workplace. Up to 79% of employees say gamification has enhanced their motivation and sense of purpose at work. Let’s face it: with little day-to-day stimulation in the workplace, it’s easy to become complacent. Today’s forward thinking business leaders are leaning on gamification to attract, reward and better attain workers, especially the harder-to-recruit millennial and Gen Z talent.  

Gamification encourages workers through:   

1. Challenges. Competing on the number of orders picked or the fewest errors 

2. Rewards. Offering extra vacation days or gift cards for good work 

3. Leaderboards. Showing workers how they rank and what it will take to get a reward 

4. Feedback. Delivering constant positive feedback about performance 

Management can set targets for employees and teams, allowing them to climb the leaderboard when their performance is improving. By mimicking what excites workers outside of the warehouse, like video games and friendly competition, organizations can take the dullness out of everyday duties, creating a more enjoyable and rewarding work environment where employees are more apt to remain passionate and motivated. Incentivizing a workplace experience can go a long way toward increasing engagement. 

SCMR: What are the long-term benefits of implementing warehouse gamification? 

McMANUS: Integrating gamification into warehouse operations has a track record of upping employee engagement, which can reduce absenteeism by 81%, lessen turnover by 18% to 43% and even lower the risk of quality defects by 41%. While this data shows incredible benefits, gamification is still in the adoption phase for many organizations. This means it will only get more impactful and reap better results over time by gathering behavioral insights and making strategic pivots to best leverage the technology. 

SCMR: For leaders interested in adopting gamification in their warehouse, what are the steps to successful implementation?  

McMANUS: Successful implementation isn’t simple—and can’t be done carelessly. To create meaningful change in the warehouse, it requires careful consideration of your staff and business goals. Specifically, when adopting gamification, leaders should:  

1. Weigh incentives and productivity against potential stress on employees   

2. Confirm processes are solid before adding gamification as a solution 

3. Choose the type of incentives that will motivate your employee base 

4. Determine access frequency to keep it engaging but not distracting    

When implementation is done correctly, the warehouse environment can be reinvigorated, allowing employees to reshape their relationship with work. 

SCMR: Looking ahead, how will gamification further reshape operations in 2025?   

McMANUS: Gamification will continue to help the industry tackle hiring and retention challenges by making warehouses more engaging places to work. When employees feel valued and see a clear path for growth, they’re more likely to stay. Creating a positive work environment and investing in their development makes the warehouse not just a job, but a place where people want to build their careers. This keeps talent around longer and attracts new people to the team. 

SCMR: Thank you.

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