HR can help the logistics industry prepare for the future of work.

Future of skills Flexible working

 

Twenty-nine percent of workers in the logistics sector want to quit their job within the next 12 months. That compares to 27% of all workers globally, according to our research. There has never been a time in history when the labor market has been so interconnected. The logistics industry competes with other industries to attract talent, which makes talent attraction and retention a serious issue.

 

The sector is traditionally associated with low-paying and physically demanding jobs, which causes an image problem. Additionally, the industry is not well prepared for the current transition to hybrid or remote working, as it is built around physical locations. Of the 29% who want to quit, 51% say the reason for moving would be better pay and 25% say it would be to gain flexibility.

 

Another thing companies cannot ignore is the geopolitical landscape. The war in Ukraine and the current economic uncertainty will most likely impact logistics not only in various ways, but also for a long time.

 

Our new white paper, The Future of Labor and Talent in the Logistics and Supply Chain Industry,   identifies key trends that are defining the challenges of industry and offers ways to drive successful talent transformation.

 

Four Key Logistics and Supply Chain Trends

 

As employers look to stay relevant and competitive, they will need to consider everything: with whom and how they collaborate to find talent, how they compensate their employees, what benefits they offer, what flexibility options they can offer. Our analysis identified four major 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 challenges and take advantage of emerging opportunities?

 

Leverage industry-shaping trends to overcome challenges

 

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

 

• Increased flexibility

• Career Opportunities

• Better change management

• A strong ESG Plan

 

Increased flexibility

Recruitment and onboarding processes can be streamlined to help organizations become more competitive. It's about making recruitment flexible for people. For example, to ensure a smooth recruitment process, responses to candidates should be made within 24 hours (or sooner).

 

We need to move away from manual reporting and invest in fully digital, end-to-end recruiting 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 post-shift payments.

 

To counter the effects of the “big quit” and help workers cope with increased childcare or elder care responsibilities due to the changes imposed by the pandemic, some companies are considering four-day work weeks or remote work on some days.

Most of the time, it can be difficult to provide remote work opportunities, but employers need to find solutions in order to better support their employees. It's increasingly common for candidates to expect more flexibility and control over their shifts and better benefits as they strive to achieve a more balanced work-life balance.

 

Career Opportunities

  There is a need for digital skills at all levels of the supply chain, in addition to increased expertise in supply chain management, with a good balance between skills not techniques and technical skills. In addition to being more profitable, replacing the workforce rather than renewing it preserves crucial internal expertise. Essential technical skills can be developed through learning and development programs.

• 49% fear automation will cause them to lose their jobs

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

Yet only 45% of workers in this sector say their company invests 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 develop a development plan, compared to 50% globally.

 

When layoffs are unavoidable, industry players need to take responsibility for the people who helped build their businesses and provide outplacement services and job pathways to help them find new opportunities. The company must identify what it can do to differentiate itself from the competition. In addition to providing flexibility and the opportunity to grow within a company, performance bonuses, vacations and wellness programs can benefit workers.

 

The recruitment, training and engagement of logistics workers should also be central to long-term workforce planning. A holistic approach to workforce management could alleviate long-standing labor shortages.

 

Better change management

Due to the new business environment, more centralized contracts as well as strategic recruitment alliances are required. Change management, reorganization and integration are all challenges for which companies must be prepared.

 

More skills are required in all areas due to digital transformation. This includes the skills needed by operators and drivers. Meanwhile, digital supply chain and analytics experts are in high demand. An effective change management strategy is necessary for this.

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Key points to remember

To successfully transform talent and keep the industry competitive, companies need to re-examine their value proposition and ensure the company provides the pay, flexibility and career development opportunities that workers expect. They certainly need to invest in skills for the future and close the skills gap by reskilling and upskilling the current workforce to ensure the business is ready for the ongoing technological transformation.

 

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