HR Challenges in the logistics sector

HR Challenges in the logistics sector

The traditional or old logistics or transportation companies which are family owned are generally not able to attract talent to this industry for reasons such as lack of professional management, still lacking in adopting technologies, poor or toxic work culture or organizational culture and poor growth opportunities and lower compensation and benefits to their employees. This industry is still known for less educated or lacking in professional qualifications of the employees. The old employees including those who have reached senior management positions or key positions are less qualified in education and lagging in the use of technology. They are averse to learning the new technologies or AI . They are resisting to Digitalization or AI and technology. Change management is a huge challenge with these older people. The younger people are finding it difficult with these Bosses who still want to operate in the old ways of managing transportation or logistics or warehousing and distribution etc. Skilling or reskilling of these old employees is becoming very difficult.

These organisations are also not best employers to work for. They are still lacking in workplace culture or environment and HR Excellence in learning and development, performance management, employee engagement, reward systems, skill and competency development, employee motivation and productivity, growth opportunities, vision and mission etc.

Logistics or transportation industry  seems averse to getting talent from other industries and they still want to hire people from their own industry. They need a change of mindset.

The compensation and benefits are lower than other industries. The logistics and transportation industry is still highly labour intensive with lot of manual or people dependent processes. The productivity is lower due to several non value adding activities.

Logistics or transportation industry is also averse to getting talent from other industries and they still want to hire people from their own industry. They need a change of mindset by hiring talent from outside the industry and grooming them for the logistics industry.

Also read: Ina Bajwa joins Tata 1mg as Chief Human Resources Officer

There is a huge deficiency in taking care of the safety of the drivers of their fleet whereas the drivers are the lifeline of this industry. They also constitute major employee category. Not much has been done to take care of their safety and this is far more lacking in the drivers of the vendor or market vehicles. This apathy for the drivers and their families should end at the earliest.

Another more prevalent illness with this industry is corrupt practices or easy money making. This is also a general perception about this industry. This is not the ways of the professionally qualified millennials who are entering this industry and they hate these corrupt practices.

The industry is changing but still appears to be slow in transformation. The transformation is a must for attracting and retaining talent in this industry.

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Samar Mahapatra

Chief Human Resources Officer at Shigan Quantum Technologies

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Samar Mahapatra

Chief Human Resources Officer at Shigan Quantum Technologies

June 2024

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