Logistics - Global HR Trend Report: How to Retain Workers in Logistics

Michele Savani - Division Manager Logistics Gi Group

During the pandemic, the logistics sector has gained unexpected attention from the media, making clear also to the general public that the industry plays a key role in the economy, the production and distribution systems.

After more than two years, Logistics still dominates the headlines of mainstream newspapers every time topics such as the increasing cost of fuel, the global consequences of inflation, the ports’ congestion or the bottlenecks in global supply chains are addressed.

As a result of this media exposure, a large number of non-experts have become aware of the fact that Logistics – conceived as the effective and coordinated handling of goods and people – has direct implications in anyone’s daily life.

The study conducted by INTWIG and the Contract Logistics Observatory shows interesting trends related to the countries analysed, ranging from the sector’s constant growth to the technological transformation; from sustainable solutions to a growing employment dynamic. The ongoing technological renewal generates interesting professional opportunities, requiring skills and roles that are not traditional for the industry. From the HR point of view, this means that companies are able to attract skills in the Digital & Automation field in order to achieve this transformation.

These considerations lead to a key result of the study. Despite the sector does not generally enjoy a high level of attractiveness (with the exception of China) the average level of satisfaction of Logistics’ employees is higher than that expressed by those employed in other sectors. Yet, in a labour market characterized by a wide labour shortage, with a specific lack of workers in roles that are key for the digital transformation and the automation process, the low level of attractiveness can become a limiting factor.

At the same time, a sector that considers operational flexibility as a key ingredient to respond quickly to market fluctuations and make labour costs more efficient must also be able to attract a workforce in the warehouse sector. Interesting data emerge also from this point of view, including the fact that one in two workers declares to have access to parking, free coffee and water, canteen facilities, but also some form of health insurance.

Finally, in terms of salaries, the survey shows that there are no disadvantages for those who work in the sector, which is comparable with other similar tasks. In light of this paradigm shift, that led the market from being client-driven to becoming candidate-driven, companies are well aware of the fact that they need to increase attraction and, even before that, invest in retention policies.

The phenomenon of the Great Resignation that started in 2021 highlights in the first place that workers have more opportunities to choose where to work, and are more open to resign for economic and personal reasons. Secondly, the Great Resignation shows that the market is liquid not only because of labour shortage, but also because the set of transversal skills required is largely overlapping between different companies and perhaps even between different sectors. For this reason, companies have equipped themselves with technological solutions or onboarding processes that allow them to manage high turnover rates and make workers quickly productive.

To retain workers, companies have no choice but to create working conditions as welcoming as possible, promoting work environments based on positive relationships, and on Total Rewards systems (salary, welfare policies, well-being and business ethics). Secondly, companies must find solutions to promote their employment offer, using communication and marketing actions expressly addressed to potential candidates.

This research brings out qualitative elements of the logistics sector that could only have emerged from a comparative analysis of different countries. An analysis that compared Logistics to other sectors and investigated the level of satisfaction and the benefits enjoyed by those who work in the sector. The study presents comforting results, that allow the industry to compete for the best talents available on the market.

There are many characteristics that can make Logistics companies attractive to the most demanding candidates. Among these are quality jobs, salaries in line with (if not higher than) the rest of the market, benefits above the average of other sectors, training opportunities, and working conditions perceived as satisfactory.

In order for these factors to actually work, companies need to accept the changed conditions of labour market, equip themselves with modern, advanced and engaging Employer Branding policies, offer stimulating professional challenges and keep the promises they make to their workers. These are challenges that Logistics managers, above all HR and Operations, must feel as their own, updating methods and approaches to the management of organizations and workforce.

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