How to Attract and Retain Talent in the Logistics & Supply Chain Industry

Sign up for our webinar on Nov. 16 on The Future of Workforce and Talent in the Logistics and Supply Chain Industry. 

Twenty nine percent of workers in the logistics sector want to quit their job in the next 12 months. That’s compared to 27% of all workers globally, according to our research. There has never been a time in history when the job market has been so interconnected. The logistics industry is competing for talent with other industries – making talent attraction and retention a serious problem.

The sector has traditionally been associated with low-paying, physically demanding jobs, causing an image problem. Further, the industry is not well prepared for the current shift towards hybrid or remote work, since it's built around physical locations. Of the 29% that want to quit, 51% say the reason behind the move would be for a better salary and 25% say it would be to gain more flexibility.

The geopolitical landscape is another thing businesses cannot ignore. The war in Ukraine and the current economic uncertainty will most probably impact logistics not only in a wide range of ways but also for a long time to come.

Our new whitepaper, The Future of Workforce and Talent in the Logistics and Supply Chain Industry, identifies key trends that define the industry's challenges and proposes ways to drive a successful talent transformation.

Four logistics and supply chain key trends

As employers look to remain relevant and competitive, they will have to consider everything: with who and how they collaborate to find talent, how they pay their employees, what benefits they provide, what flexibility options they can offer. Our analysis identified four mega trends affecting the logistics and supply chain industry:

• E-commerce boom or bust

• Last-mile delivery

• Digital Transformation

• Green Transition

Looking at these key trends shaping the industry, how can companies overcome the challenges and take advantage of the emerging opportunities?

Leveraging the trends shaping the industry to overcome challenges

For the logistics and supply chain sector to grow and meet customer demand, it must retain and attract new candidates amid a severe labour shortage. The HR talent management strategy that the industry needs to drive a successful transformation can be structured around four pillars:

• Increased Flexibility

• Career Opportunities

• Better Change Management

• A strong ESG Plan

Increased flexibility

The recruiting and onboarding processes can be streamlined to help organisations become more competitive. It's about making recruitment flexible for people. For instance, in order to ensure a smooth recruitment process, responses to candidates should be made within a 24-hour window (or sooner).

We need to move away from manual reporting and invest in fully digital, end-to-end hiring solutions. Using digital solutions will ensure a short time-to-hire and full transparency of the hiring process. By doing so, data can be accessed quickly and recruitment processes can be controlled. Likewise, companies with innovative payment methods will stand out, such as after-shift payments.

In an effort to counteract the effects of the 'Great Resignation' and help workers deal with increased childcare or elderly care responsibilities due to the changes imposed by the pandemic, some companies are considering four-day workweeks or remote work on certain days.

Most times might be challenging to offer remote work possibilities, but employers must find solutions in order to better support their employees. It is becoming increasingly common for candidates to expect more flexibility and control over their shifts and better benefits as they strive for a more balanced work-life balance.

Career opportunities

 There is a need for digital skills at all levels of the supply chain, on top of increased supply chain management expertise, with a good balance between soft and hard skills. Besides being more cost-efficient, replacing the workforce rather than renewing it preserves crucial in-house expertise. It is possible to develop much-needed technical skills through apprenticeships and development programs.

42% of workers in this sector worry that automation will impact their job in the future, according to our Global Workforce of the Future Report.

•           49% worry that automation will make them lose their job

•           68% think automation will force them to learn new skills

And yet, only 45% of workers in this sector say their company is investing effectively in developing their skills, compared to 49% globally. 47% of workers in this sector say their company regularly assesses their skills and helps them devise a development plan, compared to 50% globally.

When layoffs are inevitable, industry players must take responsibility for the people who helped build their companies and provide outplacement services and employment bridges to help them find new opportunities. The company needs to identify what it can do to differentiate itself from the competition. Aside from offering flexibility and the opportunity to develop within a company, performance bonuses, holidays, and wellness programs can benefit workers.

Better change management

Because of the new business environment, there is a need for more centralised contracts as well as strategic recruiting alliances. Managing change, re-organisation, and integration are all challenges that companies need to be prepared for.

A greater number of skills are required across the board because of digital transformation. This includes skills needed by operators and drivers. Meanwhile, digital supply chain and analytics experts are in high demand. An effective change management strategy is needed for this.

A strong Environmental, Social & Governance (ESG) plan

Most consumers (83%), leaders (91%), and workers (86%), believe that companies have a responsibility to act on environmental, social, and governance issues (ESG).

Diversifying the workforce, for instance, has become a critical element of addressing labour shortages and building better, stronger businesses. By 2025, Maersk plans to increase the proportion of women in management to 40% and the proportion of underrepresented nationalities to 30% at executive levels.

The ESG agenda must be integrated into the operations of companies - not least when creating an interesting employee proposition. Logistics is changing. Women are more accepted in traditionally male occupations, cultural and educational backgrounds are more diverse, and there is greater cross-industry exchange of talent. More, an economy that is green and inclusive is driven by more diverse perspectives, which foster innovation and customer success.

Key Takeaways

To drive a successful talent transformation and keep the industry competitive, companies need to re-examine their value proposition and ensure the business is offering the salary, flexibility and career development opportunities workers expect. They most certainly need to invest in skills for the future and address the skills gap by re-skilling and up-skilling the current workforce to ensure the business is ready for the ongoing technology transformation.

Companies need to develop a solid transformation plan by investing in a holistic talent management approach that allows industry players to capitalise on the immense opportunities in a green and inclusive economy. Ultimately, companies need to find talent solutions that ensure their workers understand, support and actively participate in transformation strategies.