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  • Writer's pictureTatio

The Logistics Industry - High Turnover Rates and the Methods that Will Fix It

Updated: Sep 1, 2022

The challenges that HR professionals face run deep in volume hiring industries, particularly in logistics.

Our partners in the logistics industry have stated that 66% of logistics workers will quit their jobs within a single quarter! In other words - for every 10 workers, 3-4 of them will leave the company in the first 3 months on the job.

It goes without saying that employee turnover can become extremely costly when companies fail to meet their employees’ needs. This idea is obviously true for the daily routine of the job, but it also holds true during the recruitment process.

Today’s logistics industry suffers from a major lack of skilled workers and high turnover rates. That resolves in less than optimal company morale overall, which also reflects on the day to day job of the company’s recruiters. This is not just a Covid-related crisis. This worker shortage has been here for couple of years now and yet, it is a surprise that it still relies on the same sourcing methods.

There’s a huge demand for a shift in how companies think about hiring.

Rethinking the recruiting process can be the much needed catalyst for positive change to take shape. It ultimately boils down to embracing a competency-based approach to recruiting.

Here are a few things you can do to adopt a new approach:

  • Engage candidates in the job-seeking process

This is one of the greatest things you can do to increase retention, even before you hire someone. If your recruitment process is engaging, includes a lot of information about the company and the position, and requires candidates to do more than submit their resume, you are on the right track. Making candidates care about where and how they apply can go a long way toward building a company-employee connection.

  • Hire employees directly through your company

In many cases, recruiters are using third-party agencies to bring in workers to the company. In these kinds of situations, how do you create the connection needed to ensure worker and business continuity if they don’t officially work for the company? Companies make little to no effort to preserve these third-party employees, and they simply can’t build company loyalty when employees are not hired directly through the company and are therefore not eligible for the same benefits.

  • Acknowledge your employees

Making employees feel valued is key in any type of business. As mentioned above, it starts by engaging them during the recruitment process and continues to recognize them beyond their title. You can promote commitment and loyalty by acknowledging the true value they bring to the organization. And, remember, they ARE valuable as people and also for what they bring to the overall business’ performance! If you are unable to see them for their worth, they will find an employer that will.

  • Invest resources in the right places

The harsh truth is that high turnover results in six-figure costs. Saving valuable dollars translates into business growth and improved performance. Instead of thinking about the costs you will have to cover when employees leave, strategize the funds you will spend on making people stay - in recruiting, training, work-life balance, flexibility, and offering adequate work terms.

Volume hiring industries can learn a lot from the turnover crisis, and at least one thing is clear - the old hiring ways are a large contributor to the current workforce challenges. To overcome the chaos, it’s important to remember why workers choose to stay - a high level of engagement, learning and development opportunities, flexible schedules, respect and gratitude, management support, and great company culture, to name a few.

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