Logistics sector shows strong worker retention rate

New research from Totaljobs reveals that over 2 million UK workers are planning on changing jobs before Christmas. In fact, 6% of the UK workforce are already on their notice period, whilst a further 26% actively job hunting as the labour market kicks into gear and workers plan their next career move.

Totaljobs has analysed more than 4.2 million job changes from 2015 onwards, and surveyed nearly 4,500 jobseekers from the Totaljobs database alongside 2,000 UK workers via Opinium, to provide the UK’s most comprehensive overview of career change trends. The survey reveals retention rates for specific sectors, with Logistics seeing a strong proportion of people staying within the sector (49%). Logistics workers spend on average 10.1 years in the industry and 7.2 years with the same employer, which is just below the averages across all industries.

The research shows not only an increase in people starting new jobs in the months ahead, but an expected rise in industry-hopping, with 75% of jobseekers from the Totaljobs database reporting they are more likely to consider working in a different industry following Covid-19. For those that already switched industry during the last year, less than one in five (18%) plan to move back to their previous industry.

Retention and loyalty vary significantly by industry

Totaljobs’ analysis of 4.2 million job changes from 2015 onwards shows that 52% of job moves involve switching to a different industry altogether, while 48% remain in the same industry. Some sectors report higher retention rates than others, with Totaljobs’ career changes analysis revealing people in HR are more likely to stay within the sector when securing a new job (64%), followed by Design (62%) and IT (62%). Looking at the total number of job moves within each industry, the following sectors saw the highest proportion of people leaving: The Military (47%), Advertising (42%), Public Sector, Farming and agriculture and Charity (all 41%).

How loyal someone is to their employer also varies significantly between industries, with Public Sector and Policing staff staying with the same employer for an average of 8.9 years, followed by Arts and Entertainment employees (8.8 years on average). At the other end of the scale, Marketing and PR employers see staff stay with the company for the shortest amount of time, at 5.5 and 5.6 years respectively.

Cross-industry career switching set to increase

Looking ahead, a quarter of workers (25%) plan to change jobs in the next two years, with an estimated 3.5 million planning on changing industry. When looking at specific industries, 49% of those working in construction are actively looking for jobs or are on their notice period, along with 41% of those in administration and 38% in IT.

When considering the motivations for future career moves, the majority (57%) of jobseekers cited work-life balance as the key reason, above a higher salary (52%) and learning new skills (38%). The impact of the pandemic on work priorities can also be seen in that over three quarters of people (76%) say work-life balance is now more important to them.

Career changes in the Covid era

Candidate research showed a third (34%) of people who started work in a different industry during the Covid era cited were driven to switch industries out of necessity – reflecting the impact of the pandemic on business operations, consumer demand levels, and employment opportunities across the UK. For others, the desire to do something different (24%) was the main motivator, followed by better work-life balance (24%), not enjoying their role (21%), as well as to earn a higher salary, learning new skills, or due to a lack of available roles in their previous industry (all 19%).

Jon Wilson, CEO of Totaljobs, said: “Our research shows that for many people, the career ladder isn’t so linear anymore; career shifts and job changes are commonplace. With Covid-19 changing our day-to-day working lives, people are increasingly searching for work-life balance, flexibility or simply for a job they can get more satisfaction out of, and they’ll look to other industries to find it.

“With a record number of job vacancies this summer, many industries who had to hit pause on their hiring in the height of the pandemic are now experiencing labour shortages, and these are likely to continue in the coming months. Businesses with an urgent hiring need should make sure they’re getting the basics right when attracting talent. Job adverts that include essential pieces of information like a clear job title, location, salary and ways of working are more likely to win applications.

“Equally, employers must be clear about what their business is bringing to the table beyond the remit of a role, whether that’s remote working, wellbeing programmes or training initiatives. Consider how you can attract the three quarters of people considering a career change, and pitch the unique benefits of your industry – especially if you can offer candidates something their previous sector couldn’t.”

For employers wanting to learn more about trends in career changes over time, the industries people are moving between, as well as retention rates across sectors, see Totaljobs’ free interactive Career Change Tracker here.

 

Trelleborg is top employer in Czech region

Trelleborg Wheel Systems was announced as the winner of the Sodexo Employer of the Region 2021 Competition for the Zlín region in the Czech Republic, an award which recognises outstanding companies for their workplace environment.

Radek Cmunt, HR Director at Trelleborg Wheel Systems in the Czech Republic, says: “We are pleased to be recognised as a Top Employer in the Zlín region, where we have two of our three Czech production facilities. At Trelleborg Wheel Systems our motto is ‘People First’. We are pleased that even in these difficult times we managed to prove that our motto is not simply buzzwords, but is something we take pride in. Our priority is taking care of our employees, so they can take care of the satisfaction of our customers, no matter what.”

Given to the top employers in the Czech Republic since 2003, the Sodexo Employer of the Region award recognises the best practices of companies in motivating, rewarding and developing employees, and ultimately achieving a company’s financial goals.

During evaluation of companies, focus was on 14 KPIs, including amount of training and personnel development costs, rate of promotions and absences, employee benefits and turnover. The survey used the Saratoga methodology with assessment by PricewaterhouseCoopers in the Czech Republic.

Trelleborg Wheel Systems operates three tyre plants in the Czech Republic, in Prague, Zlín and Otrokovice, which underwent a recent expansion.

Logistics – it’s a people thing

Worker quality and numbers is fast becoming one of the trickiest aspects of finding and properly utilising people in the DC, says Smitha Raphael, Chief Product & Delivery Officer for WMS technology innovator SnapFulfil.

Amazon has raised the bar in the race for workers by increasing its average starting wage in the US to $18 per hour (potentially rising to $22.50) – plus it also plans to hire more than 125,000 warehouse and transportation workers in the US alone for 350 new logistics facilities opened this year and to help the rollout of one-day delivery for Amazon Prime loyalty club members.

Retailers generally are scrambling to hire hourly workers in this stretched-to-breaking-point labour market and have even been offering benefits and joining bonuses to attract them, with Walmart also planning to hire 20,000 workers at its supply chain division ahead of the manic Q4 season.

The UK & Europe is already following suit, but baby boomers, which have traditionally made up most of the DC workforce, are rapidly approaching retirement age and younger generations are less willing and available to replace these roles in the warehousing industry.

Raphael explains: “The current global labour issue has also highlighted the stark differences between manually operated DCs and those that have integrated automated process solutions and have been able to keep up with rapidly growing e-commerce and quick delivery demands.

“At SnapFulfil we are working with customers to help them meet this labour crisis head on – by way of real time data and warehouse planning – to optimise both space and resource, in order that business as usual can be maintained in these exceptional circumstances.”

When labour is at a premium and self-isolation is a reality, coupled with a rapid change in orders, then having the very latest data to boost the effectiveness of the available workforce, their picking and packing performance, plus available space – underpinned by highly efficient receiving and putaway activity – is vital.

What’s more, it allows for remedial measures to be quickly and inexpensively enacted, because highly configurable WMS software like SnapFulfil means every aspect of the e-commerce fulfilment process can be automated, streamlined and made intuitive for floor staff and management.

Raphael adds: “SnapFulfil customers typically benefit from efficiency and productivity improvements of up to 30%, which basically translates into the ability to do more for less with the same resources – something we are all craving during these hugely uncertain times.”

BIFA seeks to inspire next generation

The British International Freight Association (BIFA), the trade association that represents the UK’s freight forwarding and logistics sector is launching a campaign to encourage its members to work with schools to promote careers in logistics, forwarding and the supply chain, and encourage students to consider them.

With schools returning for a new academic year, BIFA is equipping its members with materials to help them promote careers within the freight and logistics sector to students.

During September, BIFA members will be receiving copies of literature (pictured below) that is full of ideas of how to promote their business and the industry as a career option to the next generation.

This promotional material is the first part of a wider industry inspiration programme that will help members to highlight to students the available routes when making career choices, identify the core values and behaviours required when applying for jobs, and provide advice that may encourage young people to broaden their horizons.

Carl Hobbis, executive director and training development manager, says: “Industry promotion is one of BIFA’s key roles and part of that is encouraging logistics as a career path. We see career guidance via school events as being key to that.”

Whilst the trade association has its own plans to have more proactive engagement with schools, it hopes that the literature that is being distributed will inspire members around the country to do something locally.

BIFA believes that schools need employer engagement and apart from the blue-chip organisations, many members generally don’t know where to start or who to approach, so it is encouraging those members to reverse this and reach out to schools in their vicinity.

Hobbis adds: “Since the Brexit vote and the onset of the Covid pandemic, global supply chains have been in the news more than ever, so what a great time to encourage someone to consider a career in international freight sector that manages those supply chains.

“Apprenticeships are certainly something that a lot of students are considering, rather than taking on the debt associated with a degree, and we are reminding members that there is a specific apprenticeship standard for International Freight Forwarding, that BIFA was instrumental in establishing.

“Many of our members are doing some fantastic things already, but we, as a trade association need to do more. This literature is just the start and provides a framework to support members, and help them to attract the next generation to the freight forwarding and logistics industry.”

Big Box appoints new marketing head

Big Box Group has announced that Lucie Stephenson has been appointed Head of Marketing.

Stephenson, previously Product Manager at Haribo UK and Marketing Manager at Costcutter Supermarkets Group, brings a wealth of marketing knowledge to Big Box Group as it continues to grow and establish itself in the Intralogistics, Automation and Buildings sectors.

Stephenson reports to Managing Director, Iain Gillard, and takes up her post with immediate effect. Stephenson has responsibility for Big Box Group’s overall marketing strategy and execution, brand development and messaging in the marketplace.

Iain Gillard said: “We are delighted to confirm Lucie as our new Head of Marketing at Big Box Group. She has great experience and brings a wealth of marketing expertise that will help us continue to drive forward our ambitious growth plans.”

Lucie began her career in product marketing at confectionery giant, Haribo, working her way up to Product Manager before moving to Costcutter Supermarkets Group (responsible for over 1,550 stores nationwide) as Marketing Manager.

Stephenson said: “It is a really exciting time for Big Box Group, as it continues to expand. The organisation has grown from its roots in intralogistics and now has a strong presence in the buildings and automation sectors. I am really looking forward to working with the team to build on what has been done so far and to bring some new and innovative ideas to the table in order to further drive the reach of Big Box Group.”

Cranfield logistics MSc graduates ‘most employable’ in the UK

Graduates of the Cranfield Master’s in Logistics and Supply Chain Management are the most employable in the UK, according to the latest QS Global Rankings.

The Cranfield MSc was rated first in the UK and 7th in the world for employability, and was named in the UK top 10 for diversity (3rd), thought leadership (3rd) and alumni outcomes (5th) in the 2022 rankings.

Course director Dr Hendrik Reefke said: “Our MSc in Logistics and Supply Chain Management aims to equip students with the knowledge and skills they need to make a significant difference in the global marketplace.

“We know our students go on to achieve some amazing things in their careers as a result of studying at Cranfield, and are delighted that this has been recognised in these latest rankings.

“My thanks go to the whole teaching team for their continued dedication to ensuring the very best outcomes for all our students.”

Retailer to logistics industry: “get innovative”

The founder of Midlands-based flooring manufacturer and retail firm Factory Direct Flooring (FDF) is calling on the UK logistics sector to generate more creative ways to attract and retain drivers and workers.

Amid news of tactics such as sign-up and retention bonuses, and mammoth apprenticeship schemes, Paul Hambidge of FDF is applauding these efforts and calls on firms to continue in this vein.

While the hospitality and fast-food sector supply challenges have been highlighted in the media recently, stock across a wide number of sectors has become harder to obtain and shipping costs are spiralling. The current supply issues are affecting businesses like FDF, which supplies to the home improvements, renovation and developer markets, and is having a serious knock-on effect to tradespeople, main contractors and homeowners.

FDF is in a strong position due to its move to a larger warehouse earlier this year – which has allowed it to increase stockholding and strategically manage longer manufacturing and shipping lead times – but Hambidge says fresh, homegrown solutions to supply chain issues are needed fast to ensure businesses remain viable. Being tactically inventive to attract the workers needed will not only help to keep many UK SMEs afloat, but it will also ensure consumers aren’t forced to bear the brunt of the ongoing global challenges.

Hambidge – whose Nuneaton-based firm FDF supplies flooring products including Luxury Vinyl Tile (LVT), laminate and engineered wood – warns that the current scenario of supply chain issues, coupled with lower product supplies from the east and Europe is making availability of products for the trade and developer, and consumer markets, significantly lower and notably more expensive.

The challenges, due to various issues caused by the pandemic and Brexit, are being further exacerbated by container shipping cost hikes and transport issues as a result of truck driver shortages, as well as the postponement of HGV lessons and tests during lockdown.

Hambidge explains: “Just as it has been heavily reported recently that many sectors such as food are experiencing supply issues that are impacting consumers, this is also happening in many other industries including ours. From building supplies through to home interiors products, a shortage of these items has a real knock on effect. The issues are now affecting tradesmen who can’t get hold of products to complete domestic or commercial jobs, which could severely affect people’s livelihoods. Subsequently the UK economy is going to suffer once again.”

FDF moved to a 40% larger warehouse earlier this year to be able to facilitate a 50% increase in stock holding.

“We’re in as good a position as we can be to weather this storm. But the truth is that this storm isn’t likely to blow over any time soon. There’s no quick fix, no real solution on the horizon and the situation will definitely get worse before it gets better. Transport, warehouse and logistics providers must innovate to tackle the current issues to avoid a catastrophe,” he added.

The logiastics industry’s driver shortfall is estimated by the Road Haulage Association (RHA) to stand at 100,000 drivers, and an existing ageing workforce means around a third of the 380,000 drivers in the UK is predicted to retire within the next five years.

Hambidge concluded: “It’s a worrying picture for businesses like ours, as transport costs are rising because of demand, so we’re paying around seven per cent more with some transport carriers. It’s just not sustainable.”

One fifth of logistics workers intend not to commute again

Almost one in five logistics workers do not intend to return to the office again post pandemic, largely due to ongoing concerns around infection control on public transport.

As employees across the UK are to set to embark on their return to the workplace following the easing of COVID-19 restrictions in July, new research reveals that many commuters are reluctant to return to their place of work in the coming months, mainly due to increased concern over infection control and social distancing on the daily commute.

According to a nationally-representative survey into 2,000 UK workers, conducted by corporate transport specialist Kura, nearly one-fifth (19.1%) of workers in the logistics industry plan to never commute again post pandemic, with regional variations from 10.8% in London to 29.1% in Wales.

The reluctance to return to the workplace stems largely from the travel to and from work, with nearly 60% of workers across the UK admitting that they hold real concerns around the commute post lockdown. This is particularly prevalent for the senior workforce, with Board-level (98%), Directors (85%) and Managers (77%) holding the biggest concerns over the future of the commute.

Kura’s research uncovered that the key root to commuters’ concerns post lockdown is infection control and lack of social distancing on public transport. Across the UK, 36% of workers hold Covid-related concerns with regard to the future of the commute, and this percentage increases to 54.4% for those employees commuting in and around London.

There is a strong cry for help with commuting from employees, particularly Graduates (70%) and Junior Executives (73%). Despite this, the commute is not a priority for the vast majority of businesses across the UK, with just 16.4% of companies expressing desire to monitor or support employees on their commute going forward.

Godfrey Ryan, CEO of Kura, comments: “As Covid-19 restrictions lift and employees are requested to return to the workplace, there will undoubtedly be more thought and consideration given to the regular commute. With increased awareness around factors such as infection control and social distancing, we will inevitably see a shift in the commuting landscape.

“For public transport commuters in particular, the perceived lack of infection control, unreliability of service and overcrowding is hampering employers hopes of an office-based or hybrid workforce post lockdown. As these fears continue to prevent workers from wanting to return to the office, it is time for employers to step up and offer alternative travel support to their employees where necessary.

“It is reassuring to see that the home to work journey is becoming an increasingly important consideration for businesses across London, with 30% expressing a desire to support their employees on the commute. Hopefully we will start to see other regions across the UK follow suit in the coming months, as the capital sets the precedent.”

CLICK HERE TO READ THE REPORT

Don-Bur Develops Apprenticeship Scheme

Working together with NSEG Training Association, Don-Bur has developed an apprenticeship scheme to take on 15 engineering apprentices in 2021. The scheme is part of a long-term commitment to develop and retain critical skills at the large commercial trailer manufacturing plant in Stoke-on-Trent.

The successful firm has already adopted 8 hand-picked apprentices this year who demonstrated the willingness and potential to grow within the business, but Don-Bur is keen to take this further.

Apprenticeships, from initial training up to and including Technician level 3 and Graduate level 4 schemes, are vitally important to offer career stability and planned, structured growth for a wide variety of individuals seeking self-improvement. The Don-Bur Apprenticeship scheme provides a valuable platform to provide a long-term partnership which will benefit both us and apprentices alike.

Lisa Blake, human resources manager at Don-Bur comments, “Engineering and manufacture relies on skilled associates who may not be readily available without training. The new apprenticeship partnership with NSEG gives us a unique, tailored apprenticeship programme that not only identifies high potential candidates but encourages an excellent retention rate after graduation.”

Paul Williams, leader at NSEG agrees. “As a prime provider to Don-Bur, we pride ourselves on our abilities to tailor individual learning plans, highlight opportunities and support the apprentices throughout the scheme.”

Apprentices completing each level will acquire a recognised qualification as well as having developed valued skills which will generate greater career prospects and remain with them throughout their working life.

Plans Approved for 670,000 sq.ft. UK Distribution Centre

Plans have been unanimously approved for a new state-of-the-art national storage and distribution centre in Staffordshire on behalf of a UK leading pet care business, Pets at Home.

Stoford Developments will deliver a purpose-built warehouse unit on a 52-acre site at Stafford North Business Park, close to Jct 14 of the M6. The development will deliver a gross internal floor area of 670,000 sq ft, and also offers an additional 100,000 sq ft of expansion land available if required.

Pets at Home has signed a 20-year conditional agreement for lease on the development, which is expected to employ more than 800 people and will open in 2022.

Stoford Joint Managing Director, Dan Gallagher, said: “We’re very pleased to have received unanimous approval for the development of this exciting scheme. We have worked closely with Pets at Home to deliver a modern, first-class design for the distribution centre. It has the potential to become one of Staffordshire’s key employment sites. This development will bring £120 million of investment into the borough and will make a valuable contribution in sustaining jobs in the region.”

Stoford has a successful track record of major development and regeneration projects spanning industrial and distribution warehousing sites, production plants, business parks, offices, retail schemes and hotels. The award-winning developer has completed commercial developments of more than 14 million sq ft with a value of over £1 billion.

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