Industry Insights

Battle for talent in the logistics sector : Retention strategiesThis second of the two-part article on the Battle for Talent in the Logistics Sector explores Retention Strategies

As supply chains have become increasingly elongated and complex, we are seeing accelerating demand - both in quantity and quality - for experienced logistics professionals, reflecting senior management’s recognition of the essential role of transport and logistics in the successful execution of their global supply chain ecosystems.

However, the overall pool of logistics talent is not expanding rapidly enough for supply to keep up with the demand –hence the spiralling payroll costs as organisations fiercely compete to attract the limited talent that is available. Effective talent retention strategies are now becoming an essential part of the strategic growth agenda for companies as they expand in the Asia region.

Successful Selection supports Retention

It should be noted that due diligence during the recruitment and selection process will increase the likelihood of successful human resource deployment and increase retention. Selecting the right candidate for the right role requires experience and expertise – combined with clear communications.

One of the most common reasons for managers leaving within one year is the job role failing to meet their expectations. Another reason is where candidates use the role as a job-hopping platform from which to seek better career opportunities. Diligent discovery

processes during the recruitment phase – engaging expert external resources as required – will play a large role in mitigating these risks.

from Logistics Executive Group, more money and career development remain the top reasons for employees leaving the organisation. However, management could do well to also be aware of the old saying that ‘employees join companies, but they leave people’.

Retention

Having successfully attracted the talent, selected the best and persuaded them to join your organisation, the challenge then becomes how to retain them

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Industry Insights

as motivated and productive contributors for as long as possible. Active Retention should form a key component of your company’s overall Talent Management strategy – and this should start right from day one.

Successful on-boarding is an essential start to inducting new hires – this includes rapidly integrating new staff into the organisational culture and the day-to-day nuances of how the company works. Structured induction programs providing broad exposure throughout the organisation and deep immersion into the new hire’s specific functional areas, together with developing a crystal-clear understanding of roles, responsibilities, deliverables and measurements, are all key elements of best-in-class on-boarding programs.

The first ninety days of the new recruit’s experience within the organisation will have a significant impact on their longevity in your company. Hence the first three months of the new employee’s tenure – whilst they are getting up to speed, not necessarily delivering results just yet, during something of an investment phase – will play a major role in increasing employee retention rates. During the start-up phase, focusing extra due care and attention to ensure a positive, welcoming, encouraging and rewarding experience for the new recruits will pay dividends later on.

In addition to successful on-boarding programs for new employees, companies also need strategies and tactics to improve Retention on an ongoing basis.

Back-to-basics best-in-class business practices for supervision and management can make a huge impact. The major drivers of employee satisfaction – which in turn has a major influence on retention – are enshrined in basic management principles.

Generally speaking, satisfied employees:

• Clearly understand the requirements and expectations from them;• Feel they have the tools, time and training to do their job properly;• See opportunities within the company to learn and grow; and• Feel rewarded, recognised and appreciated.

Hence, actively working on employee satisfaction is a key part of employee retention. Other strategies to increase employee retention include organisational belonging – creating and nurturing a work environment where employees feel a sense of belonging – to their team, their department and the company – inside and outside of work hours.

One example is a consumer products company which has adopted three specific strategies that have proven to increase employee loyalty and improve retention:

• Job Rotation program enabling employees to progress horizontally across different departments – at the same pay scale – but providing opportunities to broaden their experience and learn new skills

• Company sponsorship of sports activities and company sports teams - engenders company belonging, loyalty and community spirit, and facilitates opportunities for workers to enjoy team and social activities together outside of work hours

• Performance related cash bonuses - at individual and team level – for specific results achieved over and above expected targets, providing opportunity to increase take home pay – funded by results above and beyond budgeted levels

Conclusion

Human capital assets are increasingly a critical source of competitive advantage and are key drivers of profitability for the organisation.

This is particularly true in service oriented sectors such as logistics and transportation, where, despite large investments in physical assets and information technology, at the end of the day it is the employees’actions that empower the effective and efficient execution of the company’s - or the client’s - supply chain ecosystem.

Retention is therefore a key component of an effective talent management strategy, with effective on-boarding and ensuring a rewarding first ninety days for new hires will substantially influence retention over the longer term.

About the Author

Mark Millar leverages 30 years global business experience to provide independent and informed perspectives on supply chain strategies in Asia. Author of “Global Supply Chain Ecosystems” Mark is a Visiting Lecturer at Hong Kong Polytechnic University and has completed over 350 speaking

engagements at corporate events, client functions and industry conferences across 23 countries.mark@markmillar.com

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Mark Millar 马克 – Bio

CN +86 136 3217 3885 www.markmillar.com HK +852 9468 5295

“One of the Region’s Supply Chain Leaders” China Supply Chain magazine CHaINA

“One of the most Progressive People in World Logistics” Global Institute of Logistics

Acknowledged as an engaging and energetic presenter, clients have engaged Mark Millar as Speaker, Moderator, Conference Chairman or MC at more than 350 corporate events, client functions and industry conferences across 23 countries. Mark leverages over 30 years global business experience to provide value for clients with informed and independent perspectives on their supply chain strategies. His ‘Asia Supply Chain Insights’ series of corporate briefings, consultations and seminars deliver practical knowledge and educated insights that help companies navigate the complex landscapes in Asia, develop new business opportunities, improve the efficiency of their supply chain ecosystems and make better informed business decisions. Author of “Global Supply Chain Ecosystems” published by Kogan Page of London, Mark is a Visiting Lecturer at Hong Kong Polytechnic University and has delivered Guest Lectures at Georgia Tech (Atlanta), RMIT (Ho Chi Minh City) and SP Jain (Singapore & Dubai). He is a Graduate of the Australian Institute of Company Directors (GAICD), Chartered Fellow of the Chartered Institute of Logistics and Transportation (FCILT), Fellow of the Chartered Institute of Marketing (FCIM) and an APICS SCOR-P certified Supply Chain Professional. Mark achieved an MBA with Distinction from the University of the West of England, is a Graduate of the Chartered Institute of Marketing and holds a post-graduate Diploma in Management Studies. His international track record in the B2B services sector includes 20 years in the Asia Pacific region, where Mark led business development initiatives across ten Asian countries. His distinguished corporate career included executive positions at Thorn EMI, RR Donnelley, ModusLink, Platinum Logistix, Exel Contract Logistics (now DHL) and UPS Supply Chain Solutions - serving many leading companies in the Consumer Retail and High Tech Electronics sectors. He has lived and worked in the UK, the Netherlands, Australia, Singapore, USA, Ireland, mainland China and Hong Kong. Whilst with the Thorn EMI group in the UK, Mark’s international sales leadership earned Thorn Secure Science the “Queen’s Award for Exports”. Appointments: an active and enthusiastic industry contributor, Mark currently serves as:

• Asia Ambassador, East West Transport Corridor Association, Europe • Advisory Board Member, Institute for Supply Management, Hong Kong • Council Member and Chair of Logistics Policy Committee, CILT Hong Kong • Head of International Relations, Vietnam Supply Chain, Ho Chi Minh City • Chairman, Logistics Committee, British Chamber of Commerce, Hong Kong • Chairman, International Relations Committee, Hong Kong Logistics Association • Advisory Board Member, Logistics & Supply Chain Management Society, Singapore • International Advisor, Logistics & Supply Chain Management Association, Shenzhen • APAC Regional Leader and International Advisor, Supply Chain & Logistics Group, Dubai

Accolades: Mark's commitment and expertise has been recognised with several accolades: • “Top 50 influential individuals in Asia Supply Chain & Logistics” 2015 • “Pro’s to Know, Supply Chain Providers” 2014 • “Chartered Fellowship” awarded by Chartered Institute of Logistics & Transport 2010 • “Supply Chain Thought Leader” Pro's to Know 2009 • “One of the most Progressive People in World Logistics” 2008 • “Supply Chain Veteran” Who's Who of Supply Chain in Asia 2008 • “China Supply Chain 20: the Who, What and Why of China Supply Chain” 2007 • “Who's Who Top 20 Power Players in Supply Chain Management in China” 2006