BAD HIRING DECISIONS THAT COST YOU $50K+ IN 90 DAYS

Why 64% of Warehouses Lost Revenue Last Year (& It Wasn't Because of Automation)

Last year I was talking with a  Y Combinator founder I'd met at a conference.  

He had been interviewing brand operators about their peak season experiences.

His research kept coming back to the same theme: "Peak season without panic."

Not peak season survival. 

Not peak season optimization.

Over 40% of warehouse operators are already forgoing revenue due to insufficient staff, but it's not the labor shortage that kills you.

It's hiring the wrong people six weeks before the storm hits.

Your goods are crossing the Pacific right now. 

Landing late September. 

That warehouse manager you hired last month is about to discover that peak season isn't a busy week. 

It's a 10-week endurance test that breaks 30% of newcomers.

64% of companies had to pass up revenue worth more than 25% of their total business because they couldn't staff properly for peak.

But it wasn't because they couldn't find people. 

It was because they hired people who quit when the real work started.

-IN TODAY’S EDITION-

Peak season exposes every hiring mistake you made this year. Here's how to spot them before they cost you everything:

YOUR NEW HIRE PANIC METER 
Read the warning signs before they quit mid-peak

THE SEPTEMBER DESPERATION CYCLE
Why rushing to hire creates more problems than it solves

INTERVIEW FOR GRIT, NOT RESUMES 
Questions that predict who survives and who walks

THE 3PL STAFFING ROULETTE 
Your vendor's hiring mistakes become your revenue losses

-YOUR NEW HIRE PANIC METER-

Sarah started three weeks ago. Great resume. Warehouse experience. Solid references.

But last Friday she asked about "work-life balance during busy seasons."

You've got a problem.

The 30-day countdown to quitting:

Days 1-7: The honeymoon phase 

Everything seems manageable. New processes to learn. Team is helpful. Optimistic about the role.

Days 8-21: Reality sets in

Pace is faster than expected. Physical demands are higher. Realizes this isn't a 9-to-5 job.

Days 22-30: The decision point 

Starts asking questions about company policies. Mentions previous jobs frequently. Shows up exactly on time, leaves exactly on time.

Over 70% chance they quit during week 2 of peak.

When your volume spikes 400%, that new hire needs to think faster, move smarter, and stay calm while everything around them is chaos.

Your veteran team knows:

  • Which suppliers always ship late (plan accordingly)

  • When the conveyor belt makes "that sound" (needs adjustment)

  • How to handle the customer who orders 500 units every December 15th

  • Which temp workers will actually show up tomorrow

New hires know none of this. 

Peak season doesn't give them time to learn.

-THE SEPTEMBER DESPERATION CYCLE-

Right now, every 3PL and warehouse in America is posting job ads with the same desperation: "Immediate openings! Great pay! Flexible schedules!"

Translation: "We're screwed and desperately need people."

Early September: The wake-up call

  • Forecasts come in higher than expected

  • Current team is already stretched thin

  • Realize you needed to start hiring in July

Mid-September: The posting frenzy

  • Indeed ads go live with inflated pay rates

  • Lower experience requirements

  • Skip reference checks to speed up process

  • Accept anyone who seems competent

Late September: The regret phase

  • New hires start showing signs of overwhelm

  • Training is rushed and incomplete

  • Team dynamics shift as veterans babysit newcomers

Your new hire just quit on the first 60-hour week. 

Now you're paying overtime to your existing team to cover the gap and training another replacement.

Your options at this point:

  • Rush replacement hiring: $8K in agency fees

  • Emergency temp staffing: $15K premium rates

  • Veteran team overtime: $12K extra

  • Productivity loss during transition: $10K

  • Customer service failures: $5K in returns/credits

Difficulty attracting and retaining permanent staff continues to be a problem, with 51% of operators relying on temporary workers to bridge demand gaps.

Your competition is hiring the same people you are.

From the same depleted talent pool. 

With the same unrealistic expectations.

-INTERVIEW FOR GRIT, NOT RESUMES-

Experience managing 50 orders per day doesn't predict performance at 500 orders per day.

The questions everyone asks:

  • "Tell me about your warehouse experience"

  • "Why are you looking to leave your current job?"

  • "What are your career goals?"

The questions that actually matter:

  • "Walk me through your absolute worst day at work and how you got through it"

  • "When have you worked under pressure for weeks without a break?"

  • "How do you handle it when everyone around you is stressed and irritable?"

The grit indicators:

Physical resilience stories:

  • Worked multiple jobs simultaneously

  • Played competitive sports (shows comfort with physical demands)

  • Military or service industry background

  • Previous peak season experience (anywhere, not just warehouses)

Mental toughness signals:

  • Stayed at challenging jobs longer than 18 months

  • Has examples of turning around bad situations

  • Asks about team dynamics, not just individual responsibilities

  • References mention reliability under pressure

The transparency test:

Instead of selling the job, scare them with the reality

  • "You'll work 65-hour weeks from October through December"

  • "Everyone gets cranky when they're exhausted"

  • "Your family will complain about your schedule"

  • "Some days you'll question why you took this job"

If they're still interested after that conversation, you might have found someone who can survive peak.

Red flags:

  • Asks about overtime limits

  • Mentions work-life balance early in conversation

  • Seems surprised by physical demands

  • Has a pattern of leaving jobs during "busy seasons"

-THE 3PL STAFFING ROULETTE

Your 3PL partner is making the same desperate hiring mistakes you are. 

The only difference is their mistakes become your problem.

Warehouse staffing still remains a struggle but most founders don't realize they can influence their 3PL's hiring strategy.

Current staffing approach:

  • Hire 100 temp workers in September

  • 40 quit by Thanksgiving

  • 30 are unreliable (call in sick on busy days)

  • 30 carry your peak season load

You're betting your holiday revenue on 30 people you've never met.

Partnership strategies that actually work:

Incentivize retention

  • Bonus pool for 3PL staff who complete full peak season

  • Branded gear to build team identity with your products

  • Direct feedback channel between your team and theirs

Share the upside

  • Revenue bonuses for hitting service levels during peak

  • Public recognition for strong performance

  • Long-term contract extensions for proven reliability

Build redundancy

  • Insist on cross-training protocols

  • Require backup staffing plans

  • Get weekly performance reports during peak

THIS WEEK'S REALITY CHECK

Peak season starts whether you're ready or not. Six weeks to get this right.

During your Monday morning audit, walk around your warehouse (or schedule a visit to your 3PL). 

Look around and ask yourself: "If volume tripled next month, who would still be here in December?"

Be brutally honest. 

That new hire who seems great?
The temp workers your 3PL just brought on?
The manager who's never been through peak before?

Tuesday: The uncomfortable chat

  • "Show me your staffing plan with names and start dates"

  • "What's your backup plan if 50% of new hires quit?"

  • "Can we do a trial run at 200% volume this week?"

Wednesday: Team prep

  • Gather your core team for a peak season reality check

  • Share historical data on volume spikes and stress levels

  • Be transparent about what the next 10 weeks will look like

  • Ask who needs additional support to make it through

Thursday: Build your safety net

  • Identify emergency staffing agencies (before you need them)

  • Cross-train existing team on critical processes

  • Document everything that lives in people's heads

  • Create your "key person quit during peak" response plan

Friday: Set expectations

  • With your team about peak season reality

  • With your 3PL about performance standards

  • With your family about your schedule

  • With yourself about what success looks like

Review every hiring decision you've made in the past 6 months. 

Who seems overwhelmed by current operations?
Who asks about work-life balance regularly?
Who shows signs of stress when things get busy?

Those are your flight risks. 

Plan accordingly.

Peak season without panic is all about about having the right human capital.

Here's to seeing around corners 🥂

~ Allison

P.S. Forward this to anyone who thinks their current staffing plan will survive peak season contact with reality.

Book a 30-minute consultation with me to design hiring and retention strategies that work under pressure.