- By Ajoy Salve Logistics is a uniquely demanding industry, with several inherent challenges impacting efficiency and cost-effectiveness. As the sector grows alongside e-commerce and globalization, it grapples with market volatility due to geopolitical tensions, rising fuel prices, environmental regulations, and skilled labor shortages. The surge in demand for same-day and next-day delivery has further heightened the challenge of balancing customer expectations with operational efficiencies. At the heart of this industry is its workforce, the majority of whom are deskless, engaged in warehouse operations, transportation, and delivery. Managing such a vast and dispersed workforce is complex, often leading to feelings of isolation among workers, lower morale, and higher turnover rates. Furthermore, the inherent risks of these roles add another layer of complexity for their employers. Despite their critical role in the industry’s success, these frontline workers often receive less recognition than they deserve. Their performance, attitude, and ability to deliver excellent service directly impact customer experience and company reputation. Given that 70% to 80% of the global labor force comprises deskless workers, including a significant portion in the logistics industry, it is crucial to focus on strategies that engage, empower, and retain this essential workforce. Strategic Recruitment & Retention for Workforce Stability Local Recruitment and Apprenticeship Programs - Effective recruitment strategies by way of tapping into local talent pools and apprenticeship programs are the starting point to build a skilled workforce. Due to the nature of logistics work, a large part of the workforce is either semi- or unskilled with minimal educational qualifications. Hence, effective training programs go a long way in helping them feel appreciated, empowered, and valued. Recognition and Career Advancement - Retaining and engaging these front-line employees is crucial to reducing turnover. Publicly recognizing achievements through reward programs fosters a positive work environment. Additionally, creating clear career progression opportunities and providing regular feedback through one-on-one meetings helps employees see a future within the company, reducing attrition rates. Flexible Work Schedules and Wellness Initiatives- Demanding and lengthy work hours and limited avenues for career progression and advancement are the key factors driving the sector's high attrition rate of 30-35%. Flexible work schedules, competitive compensation packages and wellness initiatives can significantly reduce stress and burnout, improving retention. Community Engagement and support service- HR should focus on community support by building solid relationships within the local area and offering comprehensive support services such as financial planning assistance, mental health support, and counseling. These services help workers manage both personal and professional challenges, ultimately contributing to a more stable, satisfied, and loyal workforce. Also ReadInfibeam Avenues secures contracts from chain of hospitals and gas-station chain for its ‘AI Facility Manager’ Safety First and Technology Adoption Implementing a Safety-First Culture-Given the high risk of physical injury in logistics roles, strict adherence to safety protocols and continuous training are non-negotiable. Appointing safety officers, conducting frequent safety audits, and rewarding teams for exemplary safety records can help foster a safety-first culture. This not only protects employees but also enhances the company’s reputation. Leveraging Technology for Safety and Efficiency-Technology can be an important factor in addressing some of the traditional pain points of the industry. For example, wearable safety devices can monitor employee data in real-time, predicting and preventing accidents before they occur. Similarly, the use of sensors and robotics in warehousing can assist employees in locating and packing items efficiently boosting productivity while minimizing risk Navigating the Shift to Automation As logistics becomes more tech-driven, HR’s role in managing the transition to automated systems and advanced tracking technologies becomes critical. Retraining employees and easing resistance to change are essential for ensuring a smooth technological transition. Workforce Forecasting and Managing Diversity Accurate Workforce Planning-Seasonal and market trends significantly impact demand in logistics, complicating workforce planning. HR must adjust staffing levels to ensure readiness during peak seasons without overcommitting during slower periods. Implementing a flexible workforce model with part-time or on-call employees during peak seasons can help manage this balance. Advanced workforce analytics tools can also provide more accurate predictions for staffing needs based on historical data, market trends, and business growth projections. During peak seasons, recruitment might need to extend beyond the local market to ensure adequate coverage, which can introduce challenges related to diversity. Promoting Diversity and Inclusion Logistics companies, characterized by a melting pot of backgrounds and skill levels must cultivate an inclusive environment. This goes beyond compliance, involving bias training, diverse hiring practices, and creation of Employee Resource Groups (ERGs) to provide support and networking opportunities for underrepresented groups. Regularly reviewing company policies to ensure they promote inclusivity and address the unique needs of a diverse workforce is crucial. Meeting the needs of a New Generation Today's logistics employees, especially the younger Gen Z workforce, seek more than just a paycheck from their employers. They want to be treated with respect and dignity and have their contributions recognized and valued. Creating a workplace culture that honors the dignity of labor is essential to maintaining their happiness, willingness to work, and overall productivity. Fostering a Motivated and Loyal Workforce Robust Training Programs for Management Roles-Invest in training programs that prepare employees for management roles, emphasizing cross-cultural understanding, employee management, and soft skills. Such programs ensure that as employees advance, they are equipped to lead effectively. Emphasizing the Value of Labor-Finally, fostering a culture that respects and values the contributions of every worker is not just beneficial—it’s essential. Meeting the emotional needs of employees by acknowledging their hard work and treating them with dignity will result in a more motivated and loyal workforce, which directly impacts customer satisfaction and the company’s overall success. By focusing on these practical strategies, logistics companies can cultivate a stable and experienced workforce that positively represents the brand and drives high customer satisfaction. (Ajoy Salve is the Chief Human Resources and Administration Officer at Xpressbees.) (Disclaimer: Views expressed are personal and do not reflect the official position or policy of Financial Express Online. Reproducing this content without permission is prohibited.)
