The logistics industry is facing a significant recruitment and retention challenge, as highlighted at the Road Transport Expo.
- Recruitment difficulties include high turnover and reluctance to attend on-site interviews, impacting costs heavily.
- The sector spends upwards of £30,000 per person on recruitment due to unsustainable turnover rates.
- Engagement with further education colleges is pivotal in creating a skilled, future-ready workforce.
- A proactive and collaborative approach is essential to develop long-term solutions for workforce stability.
The logistics industry currently grapples with a pressing recruitment and retention issue. This was a focal point during discussions at the recent Road Transport Expo. Industry operators are consistently troubled by the high turnover rates and the challenges of enticing potential candidates to participate in on-site interviews. The reliance on online interviews underscores the difficulty in filling entry-level roles traditionally, highlighting a sector-wide concern.
Statistics reveal that annual labour turnover rates fluctuate between 30% and 40%. More alarmingly, data from Kahoot indicates that turnover at the entry-level position within warehousing has reached a staggering 49%. Such figures paint a grim picture of the current state within the logistics industry, with the financial repercussions being substantial. The cost of recruitment, when combined with losses in sales and productivity, often exceeds £30,000 per individual, an indicator of the unsustainable nature of the prevailing recruitment practices.
However, the logistics sector is synonymous with pragmatic and efficient solutions. There is a burgeoning need to transition from reactive measures and monetary incentives to a long-term, strategic approach in attracting high-calibre entry-level and managerial talent. Critical to this strategy is the construction of a comprehensive three- to five-year roadmap aimed at securing and retaining new talent. Untapped potential lies within demographics such as the Armed Forces and Prison Service leavers, who are often overlooked despite their eagerness to explore careers in logistics.
Engagement with further education colleges represents a crucial step in addressing the workforce crisis. These institutions offer access to a large, underutilised pool of potential talent. With 1.8 million students enrolled in England and Wales’s further education colleges last year, capturing even a small percentage as future logistics professionals could yield significant benefits. Skills for Logistics has proactively partnered with colleges, introducing tailored programmes that integrate logistics into their academic and strategic frameworks, aiming to ignite student interest and comprehension of the industry.
The formation of a robust logistical workforce extends beyond generating initial interest—it requires enduring commitment from business leaders. This approach involves developing individual roadmaps with various colleges that predict and align with future workforce requirements, spanning 12 to 24 months. Such proactive measures ensure that students acquire industry-specific skills tailored to meet employer demands, thereby facilitating other educational experiences such as placement opportunities and mentoring programmes. Once career pathways are elucidated, and students express interest, comprehensive support structures are put in place to guide them through the transition from study to employment successfully.
A long-term collaborative approach is crucial for cultivating a stable and thriving workforce in the logistics industry.
