Warehouse Staff Turnover: Why New Starters Leave in the First 90 Days and How to Reduce It

Overview

Many preventable warehouse exits happen early in a worker’s tenure. New starters may leave in the first 90 days when the job does not match what they were told. Pay, PPE or site access that is not ready in week one adds to the risk. So do rosters that shift at short notice and an induction with no follow-up. Each cause has a practical fix, held by the host site, the labour hire provider, or both.

• Australian Bureau of Statistics (ABS) data shows 16% of employed people had been in their job for less than a year in February 2026.
• The ABS job mobility rate was 7.2% in the year to February 2026. It measures people changing employer, so it is a national reference point, not a warehouse benchmark.
• Tracking 30, 60 and 90 day retention for each intake tells you more than a single annual turnover figure.
• The timing of an exit is a useful diagnostic. Week one often points to setup, weeks two to six to expectations, and months two to three to rosters and supervision.
• Safe Work Australia says the labour hire provider and the host business must consult, cooperate and coordinate on training and supervision.

New starters rarely leave over one big problem. More often, several small ones stack up in the first few weeks. This guide covers why that happens, what Australian data can tell you, and how to measure and reduce early exits.

Why do warehouse jobs have high turnover in the first 90 days?

Early exits in warehousing tend to trace back to a handful of causes. They show up before a new starter has settled in, and the mix varies from site to site.

The job differs from the description. Warehouse work can mean long periods on your feet, repetitive lifting, cold stores, early starts and pick-rate targets. When a job ad leaves those details out, the gap shows within the first few shifts. A Flinders University workforce guide (NCETA) notes that an overly optimistic job description “may create problems in the longer term if a new employee’s expectations are not met” (NCETA, Flinders University).

Week-one setup is not ready. Missing PPE, a broken site pass or a short first pay gives a new starter a reason to doubt the job early.

Rosters change at short notice. Casual and labour hire workers may plan other commitments around the hours offered. If shifts move or disappear in the first month, a steadier offer elsewhere becomes more attractive.

Induction stops after day one. One session covers safety and site rules. The practical parts of the job, such as where stock lives and how the scanner works, take several shifts to learn.

No one knows the new starter. Workers who have not met their supervisor and workmates can feel like a number on a roster, and the work environment feels less welcoming. WorkSafe Victoria’s induction guidance includes introducing a new worker “to their immediate supervisor, their health and safety representative and their workmates” (WorkSafe Victoria).

Reading the timing of early exits

When a new starter leaves can be a useful clue to why. The table below is a diagnostic guide, not a published benchmark. Test it against what your supervisors and exit conversations tell you.

When the exit happens	Common causes to check	What to check first
Before or during the first week	PPE, site access, transport, first pay, no one expecting them	Whether pay details, PPE, induction and a named contact were confirmed before the first shift
Weeks two to six	The job is harder, faster or colder than described; induction ended too early	What the worker was told before starting, and whether anyone checked in after week one
Months two to three	Rosters, hours, supervision and whether the role leads anywhere	How stable their hours have been, how the supervisor relationship is going, and whether ongoing work has been discussed

Exits clustered in week one often point to an administrative fix. Exits between weeks two and six often point back to how the role was described.

What is a normal staff turnover rate in Australia?

There is no official staff turnover rate for Australia, and no official warehouse benchmark. The closest national measure is the ABS job mobility rate. It counts people who changed employer during the year as a share of people employed at the end of it.

In the year ending February 2026, the ABS reported that “1.0 million people changed jobs”. The job mobility rate decreased to 7.2%, down from 7.7% a year earlier (ABS, Job Mobility, February 2026). The same release shows:

ABS measure, year ending February 2026	Figure
Job mobility rate, all employed people	7.2%
Job mobility rate, industry left: Transport, Postal and Warehousing	6.4%
Job mobility rate, industry left: Manufacturing	8.0%
Job mobility rate, occupation left: Labourers	10.3%
Job mobility rate, occupation left: Machinery Operators and Drivers	8.8%
Job mobility rate, people aged 15 to 24	12.0%
Employed people in their current job for less than 1 year	16%

Source: ABS, Job Mobility, February 2026.

Two cautions apply. Job mobility is not an employer’s turnover rate, because it leaves out people who stopped working and covers the whole labour market. Also, Transport, Postal and Warehousing sat below the all-industry rate, while Labourers sat above it. National averages say little about churn among one site’s new starters, so your own 90-day numbers are a more direct guide.

Is a 30% turnover rate bad, and what is an acceptable turnover rate for a warehouse?

It depends on what the figure includes and when the exits happen. A 30% annual rate that includes planned peak-season contracts ending on schedule is very different from one driven by new starters leaving in their first fortnight. Many published warehouse turnover figures come from overseas vendors and use different definitions, so comparing against them can mislead.

A better question is how many of your exits happen inside the first 90 days, and whether that share is rising or falling. Early, unplanned exits are often within an employer’s influence, because they tend to trace back to setup, expectations and support.

How do you calculate warehouse staff turnover and 90-day retention?

Standard turnover divides the number of people who left during a period by the average number employed over that period, then multiplies by 100. For early exits, track each intake of new starters separately.

1. Record every new starter by start date, role, shift and source: labour hire, casual or direct permanent hire.
2. At 30, 60 and 90 days, count how many from each intake are still working on site.
3. Divide the number still on site by the number who started, then multiply by 100. For example: 90-day retention (%) = starters from the intake still on site at day 90, divided by the number who started in that intake, multiplied by 100.
4. Record the reason for each exit. Separate voluntary exits from planned contract ends and employer decisions.
5. Compare intakes over time, and by shift or role, rather than against a national average.

This gives a site manager a figure they can influence directly, and shows whether changes to induction or rostering are working. There is no published Australian benchmark for 30, 60 or 90 day retention in warehousing, so the most useful comparison is your own intakes over time.

Losing new starters before day 90? Compare retention by role, shift and intake before you spend more on recruitment, and talk to Wise Recruitments about how placements are briefed and checked in on.

How can warehouse employee turnover be reduced in the first 90 days?

These steps sit before and during the first few weeks, not after a worker has decided to leave. Many cost supervisor time more than money.

1. Describe the job as it is. Share shift times, physical demands, temperature, targets and the type of stock before anyone starts. NCETA describes a realistic job preview as presenting “the pros and cons of the job to potential candidates” (NCETA, Flinders University).
2. Finish setup before the first shift. Confirm pay details, PPE sizes, site access, transport, and who will meet the worker on arrival.
3. Induct before work starts, then keep going. SafeWork NSW says safety should be part of an induction “before they start their job” (SafeWork NSW). Teach the practical parts across the first several shifts. Our guide on how to onboard a labour hire worker covers the site induction in detail.
4. Give every new starter a named contact and a buddy. One person on the shift to ask about small things removes much early uncertainty.
5. Check in at the end of week one. WorkSafe Victoria recommends checking back with a new worker “in a week or so” (WorkSafe Victoria). A short conversation then can surface pay, roster and expectation problems while they are easy to fix.
6. Repeat the check-in around days 30 and 60. Ask whether the job matches the description, whether the hours suit, and what would help next month.
7. Keep early rosters stable where you can. When hours must change, give notice early and explain why.
8. Talk about what comes next. For workers who are performing well, ongoing hours or a temp-to-perm pathway gives a reason to stay past the first quarter.

Sharing the first 90 days with a labour hire provider

When workers come through a labour hire provider, responsibility is shared. Safe Work Australia states that “both the labour hire agency and the host organisation are persons conducting a business or undertaking (PCBUs)”. Both “are responsible for the health and safety of the labour hire worker”, and neither can contract out or transfer those duties (Safe Work Australia).

The safety and induction rows below follow Safe Work Australia’s guidance. The pay and check-in rows reflect a common way these arrangements run. For current legal requirements, check with Safe Work Australia or your state WHS regulator.

Area	Host site	Labour hire provider	Both
Describing the role	Tells the provider the real tasks, pace, conditions and hours	Passes that description to candidates before they accept	Keep the description current
Induction	Delivers the site-specific safety induction and supervision	Delivers a general safety induction and confirms the site induction happens	Consult, cooperate and coordinate on training and supervision
Skills and licences	Confirms the tasks the worker will perform	Checks the worker holds the qualifications and licences required	Agree before the worker moves to a new task
Pay and setup	Confirms timesheets and hours worked	Runs pay, super and onboarding paperwork	Resolve any first-pay issue quickly
Early check-ins	Supervisor or buddy on shift	Coordinator checks in with the worker and the site	Share what each check-in finds

Sources: Safe Work Australia, labour hire WHS duties; Safe Work Australia, induction for new workers; Safe Work Australia, labour hire duties guide.

Safe Work Australia’s guide also advises against moving a labour hire worker to new tasks before consulting the worker and getting the provider’s approval. Agreeing changes in advance also keeps the expectation gap from widening.

Questions to ask a labour hire provider about early retention

How a provider handles the first 90 days shapes how many new starters stay. Before engaging one, ask:

• How do you describe the role to candidates, and can we review that description?
• What does your general induction cover, and how do you confirm our site induction has happened?
• Who is the worker’s named contact in week one?
• When do you check in with new workers and our supervisor, and how do you share what you hear?
• How are pay, super and timesheet problems resolved in the first pay cycle?
• What happens if a worker is not the right fit, and how quickly can a replacement start?

Wise Recruitments supplies warehouse, logistics, forklift, food processing and manufacturing workers from offices in Coburg North, Melbourne, and Homebush West, Sydney. Placements can be temporary, contract, temp-to-perm or permanent, with payroll handled for placed workers. We hold Victorian labour hire licence VICLHL10427. To talk through these questions for your site, see our Melbourne warehouse labour hire and Sydney warehouse labour hire pages, or contact our team.

Frequently asked questions

Why do warehouse workers quit so soon after starting? Common reasons include a gap between the job described and the job itself, and week-one setup problems such as PPE, access or first pay. Unstable early rosters and too little support after induction also play a part. The timing of the exit can show which is at work on a particular site.

Which industry has the highest turnover in Australia?On the ABS job mobility measure, Accommodation and Food Services had the highest rate by industry of job left in the year ending February 2026, at 15.4%. Transport, Postal and Warehousing was 6.4% on the same measure (ABS).

What problems does high warehouse staff turnover cause?

Supervisors spend more time inducting and training new hires, and shifts run with more people still learning the site. Productivity can dip while each new starter gets up to speed. Planning warehouse operations gets harder when numbers change weekly. For the cost side, see the hidden cost of managing casual staff and the cost of a bad hire compared with labour hire.

How long should a warehouse induction take?

There is no single required length. What an induction must cover depends on the site, the tasks and the hazards. Safe Work Australia and your state WHS regulator publish guidance on inducting new workers and are the place to confirm current requirements.

Does using labour hire reduce warehouse staff turnover?

It can help when the provider describes roles accurately, checks in early and replaces a poor fit quickly. The host site’s induction, supervision and rostering still matter. For busy periods, see our guide to peak season labour hire planning.

The bottom line

Warehouse staff turnover is easiest to influence before a worker decides to leave, which puts the first 90 days in focus. Describe the job as it is, finish setup before day one, and keep induction going. Check in at week one and around days 30 and 60, agree who owns each step with your provider, and track retention by intake.