Talent retention is critical for companies to maintain a competitive advantage and achieve long-term growth.
The average cost of staff turnover, based on the average UK salary, is around £11,000 per person, and for more specialist roles, this can rise to up to £100,000. If the transportation and logistics industry continues to have high turnover rates, this cost will soon increase. Although the cost of living crisis continues to cause stress for many organizations, the need to keep employees happy is about more than just developing into an employer of choice.
Aside from the cost, another reason to focus on talent retention is that it plays a huge role in employee satisfaction. When companies focus on keeping their employees happy, they will naturally want to stay longer.
In transportation and logistics in particular, retaining talent is becoming more important. In fact, the sector’s turnover rate currently stands at 29.8%. With a continuing skills shortage in this sector, it is essential for companies to keep their employees close.
To do this, the transportation and logistics industry needs to ensure that its employees feel valued. By building trust and recognition. Here, Stacy Allen Hayes, Director of Corporate Partnerships at Arden University, lists her top five tips on how companies in transportation and logistics can work now to retain talent.
- Invest in quality learning and development
One powerful way to show your employees you care is to offer learning and development opportunities that will help them progress and grow in their roles.
According to LinkedIn’s 2024 Workplace Learning Report, companies that prioritize learning see a 27% increase in employee retention.
However, here it is important to develop a targeted educational plan. Companies should aim to tailor what they offer to their employees to suit their career ambitions. For some, more intensive courses, such as vocational training, will be more beneficial. A good learning provider will also make sure that their courses are relevant to your industry and employees. This ensures that the business also grows with the new knowledge that its employees develop along the way.
- Don’t be afraid to hire on the side
Companies should encourage employees to apply for new roles within the company and promote from within whenever possible. Of course, as mentioned above, providing continuous learning opportunities will create a more effective environment in which to do so.
Focusing on hiring from within also shows employees that they are encouraged to try something new or different. This will once again ensure that employees feel valued and keep them on track to achieve their career goals at your company.
- Maintain open communication
Business leaders estimate that their teams lose an average of 7.47 hours per week due to poor communication. Open communication in the workplace allows employees to feel comfortable sharing their ideas, concerns, and feedback. It is built on trust, transparency and mutual respect, which helps create a positive work environment.
This has abundant benefits. It allows employees to understand the company’s goals and objectives and their role in it. It helps manage conflict, enabling employees to feel comfortable speaking up, which in turn boosts team morale and delivers more creative results.
Again, open communication will allow employees to express if they want to change aspects of their role or if they are looking for a new challenge, for example. This will allow you to offer alternative solutions and opportunities to keep them engaged while working for you.
- Promote empowerment
Companies must give their employees autonomy in decision-making, trust them with responsibilities, and involve them in strategic discussions. Employees who feel empowered are 50% more engaged than those who feel less empowered. Furthermore, the majority of employees value this empowerment to take action when faced with a problem or opportunity at work.
This plays a role in allowing workers to feel trusted and valued, leading to them being more motivated and committed to their roles. Open communication and offering personalized learning and development opportunities helps with empowerment and will give your employees the confidence to take action if something is currently outside their comfort zone.
- Strong leadership
According to the Chartered Institute of Management, 82% of new managers in the UK are “casual managers”, meaning they have no formal management or leadership training. This can have a negative impact on employee engagement and return on investment.
Companies need to ensure they train managers to lead with empathy, transparency, and fairness. Strong and supportive leaders contribute to high employee satisfaction. A college degree apprenticeship is a good way to do this, because it allows those who already know your job to improve their skills and learn on the job. It also gives them the ability to drive with confidence.
Overall, ensuring that employees feel respected is no easy feat – but with increased competition in the transport and logistics sector, and with ongoing skills shortages, it is essential to do more to retain talent. The above strategies should help companies create an environment where employees feel valued, supported, and motivated to stay for the long term.
