The COVID-19 pandemic has affected countless areas of our lives, including how we work and who we work for. While leaving a job for greener pastures isn't new, we've seen an unprecedented exodus of the American labor force over the last year. 'The Great Resignation' is a term that signifies the roughly 33 million Americans who have voluntarily quit their jobs since spring 2021. Many seek better pay and benefits to keep up with rising inflation while others look to maintain the flexibility and autonomy to which they have grown accustomed. Company culture, employee engagement, benefits, and the ability to work remotely are at the top of most employees’ wish lists.
This blog post looks at the current state of the job market, how the Great Resignation has impacted the transportation industry, and how logistics companies can retain their human capital.
According to a December 2021 Forbes article, the unrelenting battle of finding, attracting, recruiting, and retaining workers has created chaos for businesses. The dilemma places hiring personnel in a bind. Brutal competition over talent leaves leadership with a difficult choice: wait and hope to find the perfect candidate or act quickly, scoop up a person who may lack critically needed skills, and hope for the best.
The current job market is so challenging that many companies are forced to "compromise" on the quality of candidates just to get help. This frenzy to lock in candidates often means bringing aboard people who don't possess the necessary skills and/or experience. To compete, many businesses have had to devote greater portions of their budgets to sign-on perks. One McDonald's restaurant got creative, offering free iPhones to new workers.
Snapping up warm bodies may offer short-term relief, but building a workforce of unqualified workers is not ideal in the long term. A survey by talent lifecycle management platform Beamery finds that skills gaps and compromises related to recruitment can have dramatic business consequences. A third of U.S. respondents feel that 25% to 49% of their current employee base holds their organization back due to a lack of skills or appropriate mindset.
Organizations are grappling with training new, often under-experienced staff while keeping current employees from leaving. Currently, there's a disproportionately heavy focus on recruitment versus retention and development because half of employees are job hunting, with high confidence in their ability to make a successful jump.
According to Supply Chain Dive, people are quitting in droves. In November 2021, the U.S. quit rate hit a record high of 3%. The U.S. Bureau of Labor Statistics reported 4.5 million resignations that month — the highest number recorded since the Department of Labor began tracking this information in December 2000.
Career burnout is on the rise. Logistics and distribution center workers have begun to feel undervalued and underappreciated. Employees in industries where working from home is not an option want better working conditions, better pay, better benefits, and flexibility. At Armstrong, we’re seeing an influx of interest from salaried freight agents looking for an opportunity to run their own businesses and earn higher commissions for their work. Let’s also not forget the aging trucker workforce retiring in larger numbers than newcomers are replacing them.
Never has creating and nurturing a strong corporate culture been more impactful to retaining valued team members. During uncertain times, it helps to hear how industry leaders are navigating uncharted waters. Here are a few pointers:
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