Table of Contents
- Recruitment Challenges in the Logistics Industry
- Industry Growth vs. Talent Shortage
- High Competition for Qualified Drivers
- Seasonal Fluctuations in Demand
- What is a good recruitment strategy?
- Job adverts that stand out
- Offering competitive pay and perks
- Utilising technology
- Retention Challenges in the Logistics Industry
- High turnover rates
- Worklife balance
- Stress & health issues
- Offering Perks to Drive Retention
- Flexible Schedules
- Wellness Support
- Practical Perks
- Leveraging Technology for Recruitment and Retention
- Apps for Onboarding
- Data-Driven insights to Identify Retention Risks
- On demand access to perks
Key Takeaways
- The logistics industry faces major recruitment and retention challenges due to talent shortage, high competition, and seasonal fluctuations.
- A strong recruitment strategy is essential with clear job adverts, competitive pay & perks and the use of technology.
- Retention issues are caused by high turnover, work-life balance and stress.
- Technology is key to improving recruitment and retention issues.
The last-mile delivery sector is the final and often most crucial stage in the logistics chain, ensuring goods reach customers efficiently. However, this industry faces significant recruitment and retention challenges. High demand for deliveries, rising customer expectations, and an increasingly competitive market makes it difficult for logistics businesses to attract and retain reliable delivery drivers.
Recruitment Challenges in the Logistics Industry
Industry Growth vs. Talent Shortage
The logistics industry has experienced rapid growth, fueled by the 2020 coronavirus pandemic and increasing consumer demand. However, the available talent pool has not kept pace with this growth, leading to a significant shortage of reliable and qualified drivers.
High Competition for Qualified Drivers
With demand increasing logistics companies find themselves competing for the best drivers. Competitive route rates, perks, and flexibility have become the key differentiators for businesses looking to attract top talent.
Seasonal Fluctuations in Demand
Peak seasons create even more demand than normal on logistics operations. Seasonal drivers are often hired to help with the surge, but finding these drivers quickly brings many challenges.
What is a good recruitment strategy?
Job adverts that stand out
A well-crafted job advert is the first step in attracting quality drivers. Last-mile delivery companies should prioritise clarity and transparency in job postings.
Highlighting key perks, competitive pay, flexible working hours, and growth opportunities can make positions more appealing.
For self-employed driver roles, job adverts should avoid references to employee or worker entitlements, i.e. employment rights, to remain legally compliant and respect their employment status for tax purposes. Failing to respect this can negatively expose companies.
Offering competitive pay and perks
Competitive pay is critical in recruiting courier drivers, but additional perks can make even more of a difference. Fuel discounts, vehicle support, and money off discounts can set a company apart from competitors.
Utilising technology
Digital onboarding processes, in particular, can make it easier for potential delivery drivers to apply quickly. This prevents applicants from abandoning the process due to frustration and providing their services elsewhere.
Retention Challenges in the Logistics Industry
High turnover rates
The fast-paced nature of last-mile delivery contributes to high turnover rates. Constant hiring cycles increase operational costs and impact service consistency. Addressing these turnover challenges is crucial for long-term stability.
Work-life balance
Delivery drivers often work long hours with irregular schedules, making work-life balance a significant issue. Providing fair scheduling, a flexible engagement, and meaningful perks can enhance work-life balance and improve retention rates.
Stress & health issues
The combination of heavy workloads, expectations, and road-related stress can lead to burnout. Having provisions in place, such as wellness programs and driver assistance services, can help alleviate these pressures.
Offering Perks to Drive Retention
Flexible Schedules
Offering flexible schedules can significantly improve job satisfaction.
Especially when engaging with self-employed individuals, it’s essential to respect their status by offering a flexible arrangement that allows them full control over their service
Wellness Support
Access to mental health support and digital GP can contribute to better overall well-being. Reducing stress can help retain couriers.
Practical perks
Practical perks, such as fuel discounts, vehicle maintenance assistance, and money off retailers, add tangible value to a courier’s earnings making their work more financially sustainable.
Leveraging Technology for Recruitment and Retention
Apps for Onboarding
Mobile apps that allow drivers to onboard from wherever they are help improve engagement. Features such as real-time notifications, e-signature functionality, and the ability to upload documents digitally create an engaged and efficient workforce.
Data-Driven Insights to Identify Retention Risks
Data analysis helps businesses identify retention risks early and take proactive measures before they escalate. Information such as having all the correct documentation uploaded and having signed all up to date policies provide valuable insights regarding the drivers that are ready to provide their services.
On demand access to perks
Providing couriers with 24/7 access to exclusive perks can enhance work satisfaction, whilst allowing your drivers to obtain support with their financial and mental well being.
Where to go next?
Wise is revolutionising workforce engagement in the logistics sector through an innovative all-in-one platform that streamlines onboarding, payments, and compliance. Wise helps logistics companies streamline operations, cut costs, and improve driver retention by eliminating key inefficiencies.
Key features include:
- Digital Onboarding: Customised journeys define steps, tasks, documents, and evidence to suit specific client needs.
- Full Dashboard View – Instantly see which drivers are active, inactive, and fully onboarded, including those who have signed all required documents and policies.
- In-App Perks for Drivers – Access to a suite of benefits, from a digital GP service to discounts at 900+ retailers—at no extra cost to courier businesses.
Wise is also a platform that supports courier businesses, ensuring they remain compliant with employment status requirements for tax purposes, particularly for those who engage with self-employed individuals.
And, we don’t stop there! Speak to a member of the Wise team to discuss how we can support your recruitment and retention efforts in 2025.
