Discover how on-demand staffing empowers warehouses to scale, comply, and thrive in an evolving labor market.
The U.S. warehouse industry has long struggled with labor shortages, with surveys indicating that 73% of warehouse operators face difficulties in finding enough workers to meet demand. As of late 2024, there were approximately 359,000 job openings in the transportation and warehousing sector, emphasizing the need for innovative staffing solutions.
On-demand staffing has emerged as a game-changer for the industry by helping warehouse operators quickly fill unfilled positions with qualified, vetted workers. Unlike traditional staffing agencies, these platforms allow warehouses to post open shifts and connect instantly with pre-approved workers, ensuring faster and more reliable workforce management.
As labor demand continues to outpace supply, warehouses are being forced to increase wages to attract workers, driving up operational costs and squeezing profit margins.
Many warehouse jobs are physically demanding, leading to high employee turnover rates. Some workers are leaving for roles with better working conditions or more predictable schedules, making retention a growing concern.
Many experienced warehouse workers are reaching retirement age, and there is a lack of younger, trained workers entering the field to replace them.
While automation is helping to ease some labor challenges, warehouses still need human workers for complex tasks. Finding workers who can adapt to new technologies remains a challenge.
Stricter labor laws, evolving OSHA regulations, and increasing scrutiny on worker classification are putting additional pressure on warehouses to maintain compliance.
The warehouse industry relies heavily on immigrant labor, including both documented and undocumented workers. As of 2022, an estimated 460,500 undocumented immigrants were employed in the transportation and warehousing sector, making up approximately 5.5% of the workforce.
Recent shifts in immigration policy have had a significant impact on labor availability in the sector. Stricter enforcement measures, increased deportations, and stricter visa regulations have contributed to a reduction in the availability of low-cost labor for warehouse operations, exacerbating existing labor shortages.
HireApp’s technology enables warehouses to post shifts and have them filled in real-time. This reduces hiring delays and ensures operational continuity even during peak demand periods. Warehouses can post a shift and have it claimed within hours by background-checked workers, dramatically reducing time-to-fill for urgent roles.
✅ 98% shift fulfillment rate – Nearly every staffing request on HireApp is filled by a qualified worker, ensuring that even last-minute openings or peak-season surges are covered.
Seasonal fluctuations and unpredictable demand make it challenging for warehouses to maintain an optimal workforce. HireApp offers a just-in-time staffing model, allowing businesses to scale up or down as needed without long-term labor commitments.
✅ Real-time workforce scaling – Warehouses can increase their workforce during busy periods and scale back when demand decreases, avoiding both labor shortages and overstaffing.
Through pre-screening and background checks, HireApp ensures that warehouses hire qualified and reliable workers. Employers can also build a roster of preferred workers for repeat engagements, enhancing workforce consistency and retention rates.
✅ 77% of frontline workers prioritize flexible scheduling – By allowing workers to choose shifts that fit their lives, HireApp improves engagement and reduces turnover.
Early adoption of on-demand staffing in warehouses has yielded positive results. Many warehouses report that these platforms have alleviated critical unfilled positions by tapping into alternative labor pools.
HireApp has helped maintain productivity during the tight labor market of 2021–2023, when nearly 40% of warehouses still couldn’t hire enough staff to meet demand. By providing a safety valve for labor needs, HireApp is mitigating the impact of worker shortages – allowing warehouses to meet customer orders and avoid lost revenue that would occur if roles went unfilled.
One of the major challenges for warehouses hiring general labor is maintaining compliance with labor laws, including wage regulations, worker classification, and tax obligations. Failure to comply with federal and state labor laws can lead to fines, legal disputes, and reputational damage.
By using HireApp, warehouses gain a compliance-driven staffing solution, ensuring that all workers are properly classified, taxes are managed, and regulatory risks are mitigated. Additionally, HireApp gig workers are OSHA-covered, ensuring that they receive workplace protections and safety standards in compliance with federal regulations.
✅ Proper Worker Classification – HireApp ensures all workers are correctly categorized (W-2 or 1099), preventing misclassification penalties.
✅ Automated Payroll & Tax Compliance – The platform handles payroll processing, tax deductions, and wage law compliance, eliminating administrative burdens for warehouse operators.
✅ Adherence to Labor Laws – HireApp verifies worker eligibility and ensures all staffing operations comply with state and federal regulations, reducing legal exposure for warehouses.
The U.S. warehouse industry faces ongoing labor challenges, and on-demand staffing solutions provide a reliable, compliant, and flexible workforce alternative. However, among these platforms, HireApp stands out as a leader in compliance and efficiency, offering warehouses an automated, scalable, and legally compliant way to fill workforce gaps.
💡 By leveraging HireApp’s contingent labor platform, warehouses can:
✔ Quickly fill positions with vetted workers
✔ Scale efficiently based on demand
✔ Maintain full compliance with labor laws
✔ Improve workforce quality & retention
✔ Reduce hiring delays & costs