Logistics is all about supply and demand. And now there’s a growing mismatch between demand for workers – illustrated by vacancy rates – and the supply of available applicants. As delegates were reminded last month at our UKWA National Conference: the world has changed!
We heard from James Terry, Vice President of Sales at Indeed Flex, that warehouse job postings have more than doubled since before the pandemic, with 81% of employers struggling to attract staff. The imbalance results from unprecedented growth in warehousing, largely driven by shifts in consumer behaviour, alongside a shrinking working population.
James’s message, echoed by other speakers, is that we can no longer treat warehouse workers as commodities, expecting them to fit into our organisations or go elsewhere. Instead, we are in a competitive marketplace for talent and must rethink our strategies accordingly, to recruit, retain and optimise our workforces.
While better pay is often cited as the most important factor by potential recruits – and Indeed Flex reported a 28% rise in salaries – this alone is not the answer. Not only is it unsustainable in the longer term, it isn’t a differentiator when competitors are also raising rates of pay.
Ruth Edwards, Operations Director at Talent in Logistics, commissioned a UKMHA research survey for the Conference, looking into attitudes of forklift operators. She found that most workers would rather have a trustworthy manager or a better work/life balance than a 5% pay rise. To stem the industry’s high attrition rate, Ruth suggested employers should be listening to their workers and engaging properly, to understand what they really want.
In addition to structured training and clear career progression, people prefer employment where they will have the right technology and systems in place to do their job well. Young professionals at our Conference were particularly keen to scrutinise the sustainability credentials of potential employers. And recognition is important; a simple ‘thank you’ goes a long way!
Workers are consumers too; and we have taught them to expect and exercise choice and control. Amy McNamara, Head of Operations, explained that Boohoo was extending its ordering window to midnight for next day delivery and even introducing a same day option, to meet consumer demand. Why then, should these same consumers expect any less when choosing where and when to work?
As James Terry pointed out, we need reliable and structured work patterns, but surely, we could and should build in shift flexibility if that’s what workers want?
Jon Sleeman Director of UK Industrial & Logistics Research at JLL said that human-centric warehouse design was very much to the fore in this context, while Jon Kirby, Commercial Director of Secure Business Solutions, told delegates that Iron Mountain’s new warehouses were being built with the comfort and convenience of workers in mind – from creches to 5-a-side football pitches. To attract the best talent to our sector, we need to understand what workers really want and put them front and centre. After all, they are, and always have been, our most important assets.
Clare Bottle
UKWA, CEO
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