The logistics workforce is responsible for between 50 and 70 per cent of your warehouse budget. It is also the largest component of your distribution centre budget. Controlling and lowering labor costs is the main concern of most logistics executives.
Due to the ongoing COVID-19 global crisis, there has been an increase in online shopping due to several countries implementing stay-at-home orders in response. The vast majority of the transport required to deliver these eCommerce products to their consumers is done by truck drivers. This means that logistics workers are less productive, as well as having to do more work.
According to HRApp, an employee monitoring software firm says that The company’s focus should be on creating a workforce comprised of well-trained, reliable people.
A logistics company’s greatest challenge in managing its workforce is keeping its fleets organized and scheduling enough employees to deliver all required deliveries. It can be difficult and time-consuming to match workers’ availability with demand.
Managers must be able to monitor employees’ stress levels to schedule efficiently. This is the best way to keep an eye on your employees. Managers must be able to deal with any unexpected changes in schedules. Companies need to have the right employee monitoring solution technology to adapt to unexpected changes in demand.
Most Effective Techniques to Manage Your People During a Hiring Crisis
There has been a marked increase in internet sales due to the ongoing COVID-19 global crisis. The vast majority of the transport required to deliver these eCommerce products to their intended customers is performed by truck drivers. The logistics industry is experiencing more work than ever before. However, this also means that employees are exhausted. Managers need to monitor employees’ stress levels to plan well and deal with unexpected changes. Truck drivers’ safety and well-being are critical for our supply chains and way of living.
Employers should pay truck drivers a salary that is proportional to their contribution as employees. This is done by offering substantial bonuses and raises. Truck drivers tend to be middle-aged or older men who are more likely to develop immunodeficiency from chronic diseases like pneumonia. This makes them more vulnerable to contracting the coronavirus. It provides a global workforce management platform, including staff scheduling, timekeeping, communication, and more. He assists business owners an leaders with creating award-winning workplaces, streamlining compliance with employment law, controlling labor costs and creating award-winning environments.
Methods to Develop a Highly-Performance Logistics Workforce
Logistics’ top 10 clients have a retention rate of 80.2 per cent. This is higher than the industry average of 53.9 per cent (U.S. Bureau of Labor Statistics). Logistics conducted a study of hundreds of employees in distribution centers to identify the factors that affect productivity and retention. To ensure hiring the right people, you should make the extra effort and create a career path for your employees. Kane Logistics and Peerless Research surveyed 252 logistics executives to research the management of the logistics workforce. The journal Logistics Management published the results. The study revealed that the most challenging issue for respondents was “getting and maintaining reliable, skilled employees”. You should budget at least $7,000 for training and recruitment to replace employees who leave your organization.
You can double the labour costs to produce the same output if you work at 50% productivity. An LMS (labor management system) can help you achieve the highest production with the fewest employees. A learning management system (LMS) measures individual and group performance against specific productivity goals. It is much more than a 30-minute job interview. This gives you the chance to meet potential permanent colleagues. You have two options: internal talent development or hiring within your company.
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A research states that logistics executives must identify and improve efficiency gaps in workforce management. Learning management systems can be used to measure individual worker productivity, according to the researchers. According to researchers, while temporary labor is strategic for warehouse staffing, businesses often view temp agencies as tactical partners. According to the researchers, it is crucial to form long-term partnerships and educate employees. Employers who don’t train their workers will hire more staff to achieve the same production level.
Statista reports that 65 per cent of shippers have outsourced their logistics warehousing operations (3PLs) to third-party logistics providers (3PLs). A research survey found that logistics executives prioritize lower labor costs as their number one priority. The company must place a high priority on developing dependable and well-trained employees. Know more.