Tips to Overcome Year-Round Labor Challenges
The logistics sector is expanding. The Logistics Managers’ Index, which is calculated using a diffusion index in which any reading above 50 indicates that logistics is expanding, came in at 65 in June 2021 and a record-high reading of 76.2 in March 2022. Continued growth is shifting how companies approach hiring.
Continued growth as a result of e-commerce spending removes the normal post-holiday staffing “reset period” many businesses experienced prior to the pandemic.
Finding top talent is now a year-round challenge. Competition for the best workers may heat up as we get closer to the holiday season, when e-commerce is at its busiest. Failure to adjust to consistent demand jeopardizes a company’s ability to capitalize on what could be a record year for consumer spending on e-commerce.
Now is the time to address the factors contributing to ongoing labor shortage challenges. Here’s how.
1. Attract workers with competitive compensation and faster onboarding. Many companies offer wage increases or bonuses when it’s time to staff up for the holiday season. Update this approach with increased demand in the earlier months.
Employers who offer wages in the top 50% of rates candidates are looking for have an easier time attracting high-performing workers and keeping up with their competitors.
Streamlining the onboarding process and getting new employees in the door as soon as possible is also crucial. Candidates are more likely to accept a job offer when they can start quickly.
2. Help employees add new skills. Workers increasingly look for employers who can offer more than a paycheck. They want to add new skills that can help them advance their careers.
When you don’t invest in the future learning of your employees—or they do not feel like there are any opportunities available for advancement in your business—they will quit. According to LinkedIn, 94% of employees will stay with a company longer if it invests in helping them learn and develop new skills. People do not want to be in “dead-end jobs,” and presenting workers with opportunities to learn new skills can prevent that.
3. Improve retention through referral programs. In a competitive labor market, look beyond short-term remedies for staffing challenges. Logistics workers know they have options and will explore other opportunities they feel align better with their goals. Implementing an employee referral strategy will help you secure workers for the long term.
Companies that help employees add new skills have an easier time retaining workers. They also set the foundation for an effective referral program that turns workers into ambassadors for a company’s job openings.
Creating an environment where experienced talent can amplify your hiring needs allows you to tap into a receptive audience—their friends and family. They may not have the referrer’s experience, but they’ll start their job with a positive outlook on your company.
Implementing a year-round staffing approach that focuses on better compensation, offers employees avenues to learn new skills, and includes employee referral programs will help companies meet demand and remain competitive.