Barnes Dennig and USI conducted its biennial Wholesale Distribution Compensation and Benefits Benchmarking Study. The study was summarized based on the 48 local wholesale distribution companies that participated with 65% having more than 50 employees and the remaining 35% having less than 50 employees. Report findings were outlined and discussed at a roundtable event at the Cintas Center. The key takeaways from the study were continued growth across the wholesale distribution industry, with extra focus on employee retention and how to keep up with competition and technology.
In 2016, distributors identified the top issue was finding and retaining a skilled workforce. When facing the issue of employee retention, it makes it hard to compete with competitors. Wholesale distributors will need to continue to focus on how to attract, retain, and motivate their workforce to keep pace with revenue growth opportunities. Certain factors to focus on would be to provide training, competitive money and benefits, and better managers!
Keeping up with competition and constant changes in technology are also hurting wholesalers. With online suppliers like Amazon, wholesale distribution companies are losing their customer base. Some wholesalers reported they have implemented e-commerce for their company in order to adapt to the way technology is growing. This has helped these companies keep up with their competition.
For the Future
Going forward, wholesalers will need to hire selectively and offer a competitive benefit package. With proper training, companies can improve each employee’s productivity. If implementing e-commerce within the company is an option, it can help streamline processes and reduce the need for extra employees. This has potential to cut costs and open up the opportunity to draw in new customers. Keeping up with the pace of technology will create an advantage over competition within the wholesale market. Overall, companies will look to existing customers for continued revenue growth.
If you are interested in the 2016 Wholesale Distribution Compensation and Benefits Benchmarking Study, you can request access to the recording of the seminar, the presentation slides, and a copy of the benchmarking study by clicking here. If you wish to speak with a Barnes Dennig Wholesale Distribution team member as to how these findings may impact your business, have us reach out to you by clicking here.