Most discussions about logistics as an industry focus on new technologies and improving supply chain efficiency. However, one crucial part often overlooked is the people. In fact, the talent shortage in logistics poses one of the industry’s most significant challenges. With an aging workforce and a decreasing pool of suitable candidates, we could soon face a major labor crisis if we don’t act now.
For example, the average driver age in the for-hire over-the-road truckload industry is 47. According to the American Trucking Association, only 8.1% of workers in this sector are female, although women make up almost half of the U.S. labor force. Some believe recruitment strategies in logistics have become more difficult due to how Millennials and Gen Z perceive the industry.
Demand for global trade is only increasing, and if logistics companies are unable to find the labor to support this growth, supply chains everywhere will, at best, slow down or, at worst, grind to a halt. The sector’s rate is exceeding the pace at which businesses are attracting and retaining new employees.
Companies must step up their recruiting game to address this gap and prevent it from expanding to a point of no return.
As older generations retire, Millennials and Gen Z are beginning to make up more and more of the global workforce, bringing a new set of expectations. Younger generations look for more than basic pay. They want development opportunities, careers that provide purpose, and a management style closer to a mentor-mentee relationship.
Holding jobs at the same company for 30+ years is no longer the norm. Businesses must understand these shifting expectations and concentrate on advertising their brand’s vision, career paths, and community engagement to avoid a massive labor shortage and get millennials and Gen Z in logistics.
Unfortunately, not everyone can see the value of working in this sector, and people sometimes view it negatively. One reason contributing to this image is that the transportation and warehousing industry had the highest rate of non-fatal injuries sustained in the workplace in 2022 and is arguably one of the most dangerous industries for workers. Additionally, younger generations sometimes think the logistics industry is slow and less likely to adopt new technology.
When you pair this with the lack of women, pay incentives, and opportunities for professional growth, it’s no wonder that the industry doesn’t have the best reputation. Logistics departments and transportation companies need to assess these factors and implement strategies to improve their employees’ working conditions.
With increased emphasis on better health practices, community building, and robust life experiences such as travel, younger generations are pushing for better work-life balance.
Logistics companies need to prioritize work-life balance in their culture to attract millennials and Gen Z workers. Flexible scheduling options and promoting time off can make a significant difference. Consider implementing the following:
By offering these options, you show potential employees that you respect their personal time and understand the importance of life outside work. This approach attracts younger talent, promotes better mental health, boosts job satisfaction among your workforce, and ensures Gen Z and Millennials in logistics stay in the industry.
Millennials and Gen Z are purpose-driven generations. They want to know their work matters and contributes to something greater, or at least does not add to the negatives in the world. In logistics, there’s a unique opportunity to highlight the industry’s critical role in the global economy and people’s daily lives.
By connecting daily tasks to meaningful outcomes, you can help millennials and Gen Z in logistics see their contributions, making recruitment and retention more effective. To instill a sense of purpose, do the following:
To attract and retain Gen Z and millennials, offering career progression and ample learning opportunities is essential. Consider implementing the following:
Communicate these opportunities clearly during recruitment and throughout an employee’s tenure. Show potential hires that a job in logistics is more than a starting point — it’s a gateway to a fulfilling, long-term career with numerous opportunities for upward mobility, salary increment, better benefits, and specialization.
One of the most exciting aspects of modern logistics is the rapid advancement of technology, which is the perfect opportunity to attract millennials and Gen Z in tech who are eager to work with cutting-edge tools and systems.
Highlight how your company is leveraging artificial intelligence, machine learning, robotics, automation, blockchain technology, Internet of Things devices, or virtual and augmented reality. Emphasize that a career in logistics means being at the forefront of technological innovation. Highlighting advanced technology can rebrand the industry and make it more appealing to younger demographics, addressing the talent shortage in logistics.
One of the best recruitment strategies in logistics is to evolve management approaches. Consider implementing these strategies:
By fostering a more collaborative and supportive management style, you’ll create a culture that resonates with millennials and Gen Z, helping them thrive in this industry.
Attracting younger demographics to the logistics industry requires a multifaceted approach. By creating a desirable workplace and getting the word out, you’ll find that you can fill positions a lot more quickly than you’d expect. For shippers and service providers everywhere in the supply chain, it’s all about providing effective training, offering meaningful roles, leaving room for employees to grow, and facilitating solid, respectful working relationships.
At Keller Logistics Group, we’re committed to shaping the future of logistics. Our family-owned, asset-based 3PL company offers comprehensive solutions, including trucking, freight solutions, warehousing, and co-packing. With decades of experience and cutting-edge technology, we provide efficient, reliable services while fostering a work environment that values innovation, growth, and work-life balance.
Contact us today for your logistics needs.
Learn more about what makes Keller Logistics Group and its affiliates the best choice for your company’s 3PL logistics needs. Contact us to learn more about our services and request a no-obligation quote. Call 419-780-3767 or return our online contact form today.