Top Challenges in Hiring Warehouse Staff Through Staffing Agencies: What You Need to Know
Hiring warehouse staff is one of the biggest pain points for growing businesses. Between fluctuating demand, labor shortages, and high turnover, many companies turn to staffing agencies for help. But while agencies can be a valuable partner, the process isn’t without challenges.
So, what are the common challenges faced when hiring warehouse staff through staffing agencies? Below we’ll break down the most frequent issues companies encounter—and more importantly, what you can do to address them.
Challenge 1: High Turnover—or Is It Something Else?
One of the most common complaints about staffing agencies is that employees don’t stick around. But in our experience, turnover is usually the symptom, not the root problem.
The real issue often comes down to how the job is described and how recruiting is handled. When the position is generalized, staffing agencies are forced to generalize their recruiting process. That means you may end up with someone who checks the “warehouse” box but isn’t a true fit for your specific needs. The details matter.
Things like:
- The exact physical requirements of the role
- What candidates will be doing in the role. For a forklift operator, what percentage of their shift is actually on the forklift.
- The work environment (hot, cold, dusty, non-climate controlled)
- The pace of the job and what “success” looks like
The more clarity you provide, the better chance you’ll have at getting employees who stick.
Challenge 2: Treating Agency Staff Differently from Direct Hires
Another hidden challenge is how agency employees are onboarded and trained.
For temp-to-hire placements, agency associates should go through the same onboarding process, training, and introductions as direct hires. Cutting corners here sets them up for failure. If the long-term plan is for them to become part of the team, they should feel like part of the team from day one.
For short-term staff, the situation is a little different—but just as important. If someone is only there to help unload containers for a week, take five minutes to explain why their role matters and how they’re making life easier for your full-time team. That recognition can make a huge difference in how they show up. Let them know their help is appreciated.
Challenge 3: Communication Gaps Between Company and Agency
Staffing agencies aren’t mind readers. If expectations shift or feedback isn’t shared, results suffer.
Some common breakdowns include:
- Last-minute changes in headcount or shift times not being shared in advance
- Employees underperforming without the agency ever being told why
- Agencies filling roles based on outdated job descriptions
The fix? Set up a communication rhythm. Regular check-ins, feedback after the first few days, and honesty about what’s working (or not working) help agencies make better placements.
Challenge 4: Unrealistic Expectations on Speed vs. Quality
Every warehouse manager has been there—someone calls out, and you need coverage now. It’s tempting to call your agency and say, “just send someone.”
The problem is that speed often comes at the expense of fit. If the agency is pressured to fill a role without proper vetting, it increases the risk of poor performance or early turnover.
The companies that see the best results understand that staffing is a balance. Sometimes speed is necessary, but if it becomes the standard request, quality almost always suffers.
Challenge 5: Pay Rates and Market Realities
Pay is one of the hardest conversations in staffing—and one of the most important.
If your warehouse is offering $15/hour while competitors down the street are paying $17, you’re not just fighting an uphill battle—you’re fighting gravity. No matter how strong your staffing partner is, candidates will naturally gravitate toward higher-paying roles.
The takeaway: Work with your agency to understand current market rates in your area. Aligning your budget with reality reduces turnover and gives you access to stronger talent.
Challenge 6: Employee Experience Matters
It’s easy to forget that agency employees are people first. How they are treated inside your warehouse has a direct impact on performance, morale, and retention.
Small things make a big difference:
- Introduce them to the team on their first day
- Give them a walkthrough of the facility before they start working
- Recognize milestones and good performance
- Avoid the “us vs. them” mindset between direct hires and agency staff
When associates feel respected and included, they’re far more likely to show up consistently and do their best work.
Final Thoughts
Hiring warehouse staff through staffing agencies doesn’t have to be a frustrating experience. Most challenges—whether it’s turnover, communication breakdowns, or pay misalignment—can be addressed with clarity, consistency, and a focus on the employee experience.
At the end of the day, the most successful staffing partnerships are built on honesty—both from the client and the agency.