GXO Deploys Innovative Approach to Providing Workforce Flexibility
GXO Logistics has completed a successful pilot of a workforce flexibility platform across eight U.S. warehouses, engaging over 1,100 gig workers. The platform, developed in partnership with Employbridge, offers on-demand employment opportunities, especially benefiting students, caregivers, and retirees. Nearly 75% of participants are women, with a significant number being primary caregivers. The program allows GXO to adjust workforce size in real-time based on customer demand, reducing costs and enhancing operational agility. Plans are underway to expand this platform to more locations.
- Successful pilot program across eight U.S. warehouses involving over 1,100 gig workers.
- Partnership with Employbridge, the largest industrial staffing company in the U.S.
- Enhanced workforce flexibility and ability to adjust headcount in real-time.
- Cost reduction for GXO's customers through efficient workforce management.
- High engagement among participants, with nearly 75% being women.
- Increased opportunities for full-time employees to upskill.
- Positive feedback from participants, emphasizing flexibility and additional income opportunities.
- Potential challenges in maintaining consistent quality and performance with gig workers.
- Dependence on the EmployGig app for workforce management, which may face technical issues.
- Initial costs and resources required for the broader rollout of the platform.
Insights
GXO's new workforce flexibility platform is a distinctive approach in the logistics sector. From a market research standpoint, this initiative is noteworthy as it targets gig workers, a demographic that has been growing significantly in recent years. Partnering with Employbridge and leveraging the EmployGig app, GXO is effectively tapping into a varied talent pool ranging from students to retirees.
The pilot program's high acceptance rate, with nearly
The flexibility offered by the program could also improve employee satisfaction and retention, reducing turnover costs. For stakeholders, this means that GXO might see improved operational efficiency and a more stable workforce, which is beneficial for long-term growth.
In the short term, the program's success could attract positive investor attention, potentially driving stock prices up. However, it is important to monitor the program's scalability and its impact on overall operational costs as it expands.
From a financial perspective, GXO's initiative to implement a flexible workforce program could drive significant cost savings. The ability to adjust headcount in response to fluctuating demand can lead to more efficient resource allocation, reducing overhead costs. By utilizing gig workers, GXO can also lower expenses related to full-time employee benefits.
Moreover, the partnership with Employbridge allows GXO to leverage existing technology without substantial upfront investment, which is a prudent financial move. This could positively impact GXO's balance sheet by preserving cash flow while enhancing operational agility.
However, investors should be cautious about potential variability in labor quality and reliability inherent to gig work, which could affect service levels. Additionally, while short-term savings are apparent, the long-term financial impact will depend on how well GXO manages and scales the program.
From a human resources perspective, GXO's workforce flexibility program is a strategic move that addresses modern employment trends. In today's gig economy, many workers prioritize flexibility and autonomy. By offering such options, GXO can attract a broader and more diverse pool of talent, including those who may not fit into traditional employment roles, such as caregivers and retirees.
This approach also fosters a more engaged workforce, as employees who can manage their schedules are likely to experience higher job satisfaction. The inclusion of technology in recruitment and workforce management can streamline operations, making it easier to match labor supply with demand efficiently.
However, it's important to note potential challenges, such as maintaining consistent employee engagement and training quality amidst a non-traditional workforce. Long-term success will depend on GXO’s ability to integrate gig workers with full-time staff and ensure a cohesive and motivated team environment.
Program provides on-demand employment opportunities for students, caregivers, retirees and others who value ability to make their own schedules
GXO leads industry with successful pilot across the U.S., increasing workforce flexibility,
raising engagement and paving way for wider rollout
GREENWICH, Conn., May 21, 2024 (GLOBE NEWSWIRE) -- GXO Logistics, Inc. (NYSE: GXO), the world’s largest pure-play contract logistics provider, announced today that it has completed a successful pilot of a workforce flexibility platform that provides flexible arrangements for more than 1,100 “gig workers” to supplement its workforce at eight GXO warehouses across the U.S., with plans to expand to additional locations.
“Tapping into the gig workforce expands our talent pool and reduces costs for our customers,” said Dawn Nixon, Senior Vice President, Human Resources, GXO. “For those who place a premium on flexible hours, our program enables us to offer greater flexibility to meet worker needs and helps us easily adjust our headcount as customer volumes change. It also creates unparalleled agility for our operations and new opportunities for our full-time team members to upskill. We look forward to expanding this program to our operations across the U.S.”
GXO has partnered with Employbridge, the largest industrial staffing company in the U.S., on the pilot program, which offers enhanced flexibility, enabling the company to attract a greater breadth of potential employees through an app called EmployGig. At the sites where GXO piloted the program, nearly three-quarters of the participants are women and almost a quarter are stay-at-home parents or primary caregivers for children. Participants include people ages 18 to over 65, with the most, approximately a third, coming from the 25–34 age group.
Billy Milam, CEO of Employbridge, said, “We are proud to partner with GXO, an innovative and tech-forward contract logistics leader, as we harness the power of the gig workforce and reshape the employment landscape of the industrial supply chain. Technology is rapidly transforming every facet of life, including today’s workforce. Employbridge is passionate about leveraging technology in meaningful ways, and we’re able to do just that with our platform-based gig solutions. We look forward to continuing to partner with GXO to bring our gig solution to additional communities as we deliver expanded opportunities, and options, for the modern job-seeker.”
As part of the pilot program, GXO will post a job, including details on dates, hours, type of work and pay. That job is instantaneously dispatched by EmployGig to candidates who best match the requirements, and they can then signal their interest. Because GXO is an industry leader in technology, a key attraction for many candidates is the opportunity to work alongside robotics and automation, which can also reduce training time. The program has enabled GXO to provide enhanced flexibility for its customers, which is critically important to respond in real-time to changes in demand while reducing costs by more efficiently managing and forecasting headcount.
Nixon added, “We’re taking a better approach to workforce management. We’re creating a more diverse and engaged team — making sure our employees have the best experience and balanced capacity, even when we have seasonal changes in volumes throughout the year in industries such as fashion, technology and consumer electronics.”
People looking for extra income were overwhelmingly positive about the program. “I am saving to buy a house and I needed an extra income,” said an EmployGig worker from Allentown, Penn., and a retired veteran in Phoenix said, “This program gives me flexibility to work when I want to work.”
The program also appeals to people who might not otherwise consider working in logistics. Another employee from Allentown said, “I am trying to spend more time with my son, and EmployGig allows me to do just that,” while an employee from Memphis said, “I like being able to make my own schedule, especially since I have younger children.”
About GXO Logistics
GXO Logistics, Inc. (NYSE: GXO) is the world’s largest pure-play contract logistics provider and is benefiting from the rapid growth of ecommerce and automation. GXO is committed to providing a diverse, world-class workplace for more than 130,000 team members across more than 970 facilities totaling approximately 200 million square feet. The company partners with the world’s leading blue-chip companies to solve complex logistics challenges with technologically advanced supply chain and ecommerce solutions. GXO corporate headquarters is in Greenwich, Connecticut, USA. Visit GXO.com for more information and connect with GXO on LinkedIn, X, Facebook, Instagram and YouTube.
About Employbridge
Employbridge is the largest industrial staffing firm in the United States. Combining the advantages of national scale and local expertise with the speed and efficiency of its Bluecrew digital platform, the company puts more than 440,000 associates to work annually across a network of approximately 400 offices in 48 states. In 2022, Employbridge served 17,000 customers across the supply chain ecosystem in manufacturing, logistics, transportation, and energy. In addition to authoring the largest survey of U.S. hourly workers for almost twenty years, The Voice of the American Workforce, Employbridge is helping close the supply chain skills gap by providing career training to 20,000 associates through its Better WorkLife Academy and Life Skills Studio. Employbridge’s family of brands include ResourceMFG, ProLogistix, ProDrivers, Select, RemX, Remedy, Westaff, Decca, Hire Dynamics, and Bluecrew. Employbridge is majority-owned by certain investment funds managed directly or indirectly by Apollo Global Management, Inc. and its subsidiaries and affiliates. For more information, please visit www.employbridge.com.
Media contacts
Matthew Schmidt
+1 203-307-2809
matt.schmidt@gxo.com
Fallon McLoughlin
+1 203-399-6998
Fallon.McLoughlin@gxo.com
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