Opinion

Navigating the Talent Gap: Strategies for Attracting and Retaining Talent in the Logistics Industry

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Navigating the Talent Gap: Strategies for Attracting and Retaining Talent in the Logistics Industry

When you visualise the logistics industry – you think of rail, road, sea, air, and the transport associated with it. At DHL, our purpose is ‘Connecting People. Improving Lives’. This means that through our global network spanning more than 220 countries and territories globally, we connect the world one shipment at a time – no matter how big or small it is. Yes, our airplanes, ships and vehicles make our customers’ worlds go around but most importantly, it is our people who make the difference.

The logistics industry is far more advanced today than the industry it was a decade ago or five years ago. Digitalisation has changed the face of the industry, and this coupled with the rise in demand due to a booming e-commerce segment as well as the need for green logistics solutions have altered the parameters of hiring drastically. Soft skills have become a major demand, with adaptability, communication, leadership, and teamwork coming to the forefront. In addition, the spotlight is on digital and technological roles that provide expertise in computer science, robotics, automation, etc.

At DHL, for example, it is also crucial that our teams are well-equipped with the technical know-how to lead us to our goal of a future where we are carbon neutral. With the rise in demand for a completely new skill set, I would not go so far as to say that there is a talent gap due to a lack of skilled labor in the aforementioned areas. However, I will say that it is up to the organisation to help bridge the gap between hiring talent and upskilling them according to the needs of the company.

Investing in employee growth is a strategic imperative for organisations aiming to achieve long-term success and sustainability. When companies prioritise the professional development of their workforce, they enhance the skills and capabilities of their employees, and foster a culture of continuous improvement and innovation. Providing opportunities for growth through training programs, educational fellowships, leadership development initiatives and even allowing employees to explore different roles across functions within the organisation can lead to higher employee engagement, increased job satisfaction, and reduced turnover rates. Moreover, a well-trained and motivated workforce is better equipped to meet the evolving demands of the market, drive operational efficiency, and deliver exceptional service to customers. This investment in human capital ultimately translates into a competitive advantage, as organisations with a skilled and committed workforce are more likely to achieve their strategic goals and maintain a strong position in their industry.

DHL Express illustrates this perfectly as we encourage people to continuously invest in themselves. UMANG is a great example of a continuous education program at DHL Express that provides financial fellowships to frontline employees, enabling them to fulfill their educational aspirations and enhance their skills for higher job roles. Every year selected employees across India are given the chance to pursue their graduation and post-graduation degrees under this initiative. Over 500 of our employees in India have benefited from this program. We also offer programs like 'Own Your Learning' (OYL) and assign employees courses to help them with their career progression.

Succession planning is another key focus for us, with approximately 83% of management opportunities filled internally, demonstrating our commitment to our colleagues’ career growth. Upskilling our extensive network has been challenging due to the need of identifying job-specific skills and assessing employees' capabilities. In the past, creating and updating skills matrices took months. Now, we have implemented a dynamic AI-powered skills marketplace that keeps skills visible, current, and connected to learning suggestions, career paths, and internal job recommendations. Our internal career marketplace is equipped with so much more than just showing employees available roles within the organisation. Within the marketplace, employees can set their learning goals and also access different modules that can help them advance their career, regardless of function or scope.

We firmly believe that all our talents come with different skill sets. A variety of skill sets is a must-have in any organisation. However, helping our people channel their strengths into the right path and build on it, is something we are intrinsically interested in. This is where our Certified International Specialist (CIS) and Certified International Manager (CIM) programs come into play. Through CIS, we can engage every member of DHL Express, provide modular training that covers culture, knowledge, and leadership. This program ensures our employees are equipped with the specialised knowledge needed to deliver high service levels that sets DHL Express apart from the competition. We also invest in training our leaders to be excellent mentors for our employees through the CIM supervisory program and the Supervisory Excellence Academy, which aim to create a team of inspired and capable DHL Express managers and supervisors. These programs drive the highest performance levels and results across the business, fostering a culture of excellence.

Being a green logistics provider of choice, also means that every employee across more than 220 countries and territories in which we operate are green champions. In line with this, DHL also offers the certified GoGreen specialist program to help each employee become experts in sustainable logistics and show them how to contribute to the success of Mission 2050 – net-zero greenhouse gas emissions. By 2025, we want to make at least 80% of all employees certified specialists. To become a certified GoGreen specialist, an employee must obtain the certification which consists of two modules: the foundation module and the elective module.

Knowing that an organisation is invested in an employee’s growth plays a vital role in employee retention. When organisations prioritise professional development through upskilling and career advancement opportunities, employees feel valued and motivated. This sense of appreciation and the prospect of continuous growth foster loyalty and job satisfaction. However, there are a few more factors that help piece the puzzle of employee retention together.

According to the Society for Human Resource Management, the expense of hiring and training a new employee can range between six and nine months of the departing employee's salary. These statistics only confirm that replacing is a much more expensive and exhaustive procedure than retaining. Why do we waste energy replacing good talent when you can put in the exact same amount of energy in retaining them?

Retaining the right talent is crucial for any organisation aiming to achieve sustained success and a competitive advantage. Employees who have been with an organisation through its highs and lows, are recognised for their contribution and most importantly feel valued, connected to the organisation’s journey. They wish well for the organisation and therefore bring forward innovative ideas, drive performance, and contribute to a positive organisational culture, all of which are essential for growth and adaptability in a rapidly changing market. Having said that, retention is often complicated by factors such as inadequate career development opportunities, lack of employee engagement, and insufficient work-life balance. To overcome these hurdles, organisations must invest in comprehensive talent management strategies, including competitive compensation, continuous learning and development programs, and a supportive work environment that fosters employee well-being and career growth.

At DHL, our people come first. Key to ensuring employee retention is making sure employees feel valued. Therefore, right from on-boarding to their very last day with us, we ensure that their journey is as exciting and rewarding as it can be.

Through initiatives like 'DHL in a box,' which is a comprehensive welcome kit provided to new joiners 15 days before they start, we help create an exceptional onboarding experience. This kit includes the essentials, such as resources, tools, and information that provide new employees with an introduction to DHL and their role.

Beyond onboarding, we take a much more personal approach to ensure that our employees know they are cared for. Health and safety are crucial pillars of the organisation at DHL Express. These themes are so important that in our monthly team brief, safety is always the first topic discussion. We take every precaution to ensure a safe workplace, believing that no employee should worry about injury at work and no family should fear for their loved one's safety. Health is equally crucial and that is why every year we run the ‘Swarogya Program’. Swarogya offers employees a full-body check-up to ensure that ailments can be detected early enough. Apart from this, we also run a weekly column known as ‘fit-to-lead’ where employee who live and breathe fitness can also inspire other employees to push themselves to start their own fitness journeys.

We must remember that value is directly proportional to recognition. Therefore, at DHL Express India, we ensure that we recognise hardworking candidates monthly through our excellence award. These award recipients are recognised for their performance and passion, who aim to make a difference every day. Exceptional candidates who have gone above and beyond the call of duty, are recognised on a global level by rewarding them with the Employee of the Year awards. Recognising and rewarding talent and hard work can never go wrong.

At DHL, our employees are important to us but so are our employees’ families. The Upstairs program supports employees' children's education through scholarships, further enhancing our employees' sense of belonging and loyalty. Employee engagement is another key facet our organisation that builds team spirit. Appreciation Week (where employees share their appreciation for one another and events like games, competitions, parties and even some volunteering exercises are held), and DHL AsiaCup (where employees from across the region come together to compete in football and cheerleading), provide employees with a great opportunity to network with other employees.

Diversity, inclusion, equity and belonging are key elements of our organisational fabric. For instance, during the hiring process, the organisation promotes diversity with initiatives such as a diversity tracker and mandates that hiring managers receive a mix of CVs from male and female candidates. We also ensure that at least one female panellist is present during interviews further supporting inclusive hiring practices. Diversity and inclusion are integral to our culture, supported by the DEIB (Diversity, Equity, Inclusion, and Belongingness) council. Initiatives like DHL4ALL and DHL4HER aim to create a gender-balanced and inclusive workplace, celebrating events such as DEIB Week. Moreover, across the network, our KPI is to increase the share of women in middle and upper management to at least 30% by 2025.

Last and most importantly, our "People First" approach underscores the importance of employee engagement and satisfaction. We conduct the annual Employee Opinion Survey, an anonymous survey where employees are encouraged to share unfiltered feedback about the organisation and management, to gather feedback and assess whether employees have the resources and training they need. Every year, over 98% of our employees participated in this survey and helped us improve our organisational culture.

All these efforts collectively ensure that DHL not only attracts but also retains top talent by creating a supportive, inclusive, and growth-oriented work environment. While the logistics industry attrition rate stands at 17.5% as per the AON report 2023, DHL Express’ attrition rate is at 4%. Our initiatives that help us retain employees also become crucial selling points for attracting new employees. In fact, several potential candidates reach out to us through employee referrals showcasing our employees’ trust in us.

DHL excels in the logistics industry by prioritising its employees through comprehensive onboarding, continuous professional development, and a strong focus on diversity, inclusion, health, and safety. Initiatives like "DHL in a box" for new joiners, the AI-powered career marketplace, and various upskilling programs ensure employees feel valued and motivated. By fostering a supportive and inclusive work environment, DHL not only retains top talent but also attracts new employees, resulting in a significantly lower attrition rate compared to the industry average. This people-centric approach drives innovation and excellence, embodying DHL's purpose of "Connecting People. Improving Lives."

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