The logistics sector has doubled in size since 2012 and is set to overtake the NHS as the largest employer in the UK, says Anne Peire, Group Director at International Fountain. Although this is a significant milestone and a testament to the growing consumer and business demand in the sector, this growth will only be achieved if qualified talent can be found.
With a large number of jobs available across the logistics sector, the flight risk of employees leaving their current employer is very high. As such, businesses in the logistics sector are having to reappraise how they retain as well as hire in order to close the talent gap. A key element of this reappraisal is taking a more labour oriented approach that is appropriate for the new service economy and which demonstrates to candidates that the job they are applying for is the right one for them.
Candidate quality
Finding the right candidate who performs well once they are hired is one of the trickiest challenges for any recruiter. Having the ability to identify the desired qualities in potential employees is critical to achieving this. Recruiting teams can address this issue by sourcing talent faster and more strategically by forming partnerships to help amplify job postings. This can include non-traditional platforms and channels that are relevant to your preferred candidates to ensure an influx of applications from a skilled talent pool.
Unattractive jobs
Low pay for non-management logistics roles can also contribute to a lack of job interest. However, with companies currently operating in a time of economic disruption, recruitment teams will need to make jobs look more attractive by offering better benefits. For example, if your company operates vehicles requiring special licences, you can choose to sponsor licence renewals. Another way is to help workers to obtain other credentials they need to succeed at their job, or offer educational courses or host seminars on how they can level up within the company to become a manager or supervisor.
Complicated Manual Screening Processes
Research by Workable shows the average time to hire for warehouse, transport, and utilities job roles is 25 days. Logistics hiring teams need to focus on making the process simpler and retire old hiring models. A lot of current hiring models are built on principles used for corporate hires. These systems are cumbersome, ask too much of candidates, and require recruiters and managers to spend far too much time on the hiring process, costing the business further. By creating mobile-friendly, automated experiences, organisations hiring hourly workers can overcome a lot of these pain points. For a start, logistics companies can abandon the CV-based application process, instead creating a fast and mobile-friendly skills-based application process. Being able to integrate recruiter-friendly automated translations into the applicant tracking system can also provide massive advantages. By communicating with applicants in their preferred language, logistics companies can reach prospective employees in a way that feels personal to them.
Talent gaps
Logistics UK recently revealed that there have been severe staff shortages in warehousing, specifically among forklift drivers. As logistics companies look to fill specific skills gaps, they need to look inside as well as outside and use this as a means of employee retention and development. Supporting employees to develop new skills so that they can fulfil in-demand roles has a clear benefit to the employer, but it also shows a level of commitment to the employee as well, boosting their affinity with said employer and making them more likely to stay.
Lack of Visibility Through Data and Analytics
Many logistics and manufacturing companies still struggle with manual data collection. Traditionally, HR teams had little to no insight into the cost per hire, how to optimise sourcing campaign spending, or where the candidates are in the hiring process. Relying on manual processes will hinder recruiting strategically in the logistics industry. Identifying workflows that are especially consuming in the application process is crucial. A good place to start is by adopting customer satisfaction surveys to see how people perceive the applicant process in order to make improvements. Also, using easy-to-follow steps will increase the speed of how candidates progress through the process. With more transparency at each step, this will help the candidate feel more valued and connected to the organisation. Putting a stop to staff turnover The lack of transparency in hiring and onboarding causes a higher turnover rate. One of the most common reasons why new hires choose to leave their position is due to unmet expectations. This is a company failure, not a candidate issue. The key to retaining employees is to build a work environment they want to be a part of.
The old system of posting jobs, waiting for candidates to show up, then putting them through a tiring interview process, and then dropping the employee handbook in their laps once they’re hired, no longer counts as effective hiring. Instead, logistics companies need to enforce a dynamic solution for their dynamic workforce needs. Moreover, the shifting demographic of Gen Z means that candidates are eager to connect on a deeper level, which means hiring processes need to do more than just track scheduled interviews or become advice to submit paperwork.
Lastly, it is crucial to remember that if you want to grow your business, making jobs more attractive from the initial stage is key. Although increasing pay as an incentive may no longer be an option during the economic downturn, alternative solutions, such as offering educational programmes and resources, can play a role in adding value to the employee experience. If logistics companies ditch the tired old processes and take a more labour-orientated approach to their recruitment, they will soon reap the benefits in the current battle for talent that is gripping the industry.
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