Overcoming talent shortages in transport and logistics

Thanks to shifting demographics, changing perceptions of the industry and evolving demands, transport and logistics companies are facing a serious talent shortage.

The time to take action is now, so we’re taking a close look at the strategies you need to keep hold of your existing talent while growing your workforce in a fiercely competitive market.

Why is the labour shortage in transport and logistics a risk?

Labour shortages in logistics aren't new, but the latest pressures mean ignoring this challenge is no longer an option. Perhaps the most alarming stat is that the UK is set to face a shortfall of 50,000 drivers, if companies don’t act soon. This comes as a result of factors including Brexit, an ageing workforce (55% of HGV currently are over the age of 50) and a general drop in the percentage job appeal in the industry.

It's not just an issue about drivers, though. Recruiting for warehouse operations, support staff and technology specialists remains a struggle, leaving gaps in operational efficiency and business continuity. 

Here’s how labour shortages could hurt the industry on a larger scale:

• Disrupted supply chains

Getting goods to where they need to be is a demanding task which requires a reliable and skilled workforce. Without it, there’s a risk of disruptions and delays.

• Rising costs

When talent is scarce, costs rise. Escalating wage demands, more overtime payments and higher recruitment expenses all make a difference – and that difference might ultimately land in the lap of the end customer.

• Damaged reputation

Unreliable delivery services, empty shelves, or supply delays can erode customer trust, harming a company’s reputation.

• Technological stagnation

63% of transport and logistics companies recognise that a lack of digital skills in their employees is a barrier to the business’s growth. Many firms are struggling to digitise because they lack employees fluent in the skills needed to implement changes.

Organisations can't afford to overlook these risks. The time to adapt is now. 

Recruitment strategies for attracting new talent

1. Highlight growth and development opportunities

Shift the narrative about logistics by focusing on the people behind the work. Emphasise career growth, professional development and opportunities to work on innovative projects. Showcase real employee stories and success journeys to demonstrate the sector’s potential for building rewarding careers.

2. Engage and inspire younger talent

While it might not be obvious due to lower age limits for some vehicle class licences, it’s worth companies looking at how they can get younger people into their workforce. Explore the opportunities associated with offering mentoring programs, attending networking events and collaborating with training providers. Other options include offering funded opportunities to complete CPC certification and mandatory medical assessments. Providing clear pathways for career growth and development will help showcase transport and logistics as an exciting industry to pursue.  

3. Foster an inclusive workforce

Expand your talent pool by prioritising diversity and inclusion. Actively recruit from underrepresented groups, and support career switchers by recognising transferable skills and providing learning and development plans to help them succeed. Not only does this help reduce the talent shortage problem, but you’ll likely find that your organisation benefits from the fresh new perspectives a more diverse workforce brings.  

4. Simplify and personalise the recruitment process

Make the hiring journey as smooth as possible. Invest in digital tools to simplify applications and provide speedy feedback. Showcase your company's commitment to values like work-life balance, employee wellbeing and collaboration, ensuring candidates see your company as a place where they can thrive. 

Retaining talent in a competitive market

Recruiting talent is one thing; keeping great employees is another – especially when competition is so fierce. Reducing employee churn cuts recruitment costs and aids in long-term growth, so a detailed retention strategy is critical.  

1. Invest in employee development

Retention begins with development, and it’s widely felt that digital skills are a barrier to growth within the transport and logistics sector. By tackling this issue head-on, you’ll be more likely to retain your workforce and set your operations up for future success.

Providing training not only demonstrates that you value employee growth, but it also gives you the opportunity to plug skills gaps by upskilling your existing workforce.  

2. Offer competitive benefits

Wages matter, but benefits and flexibility can really make you stand out as an employer. Consider offering tailored schemes such as healthcare packages, financial wellbeing incentives, or even perks like free gym memberships. Along with being more likely to stay longer, employees who feel valued will be more productive.  

3. Focus on mental health and wellbeing

The demanding schedules, long hours and physical strain often faced by drivers and warehouse staff can lead to burnout, high turnover and even safety risks on the job. Introducing initiatives such as mental health support, access to counselling and flexible working arrangements creates a more supportive environment. This will reduce absenteeism and improve safety, which in turn ensures smoother operations.  

4. Recognise and reward excellence

Acknowledgement goes a long way – whether it’s through structured monthly recognition programs, peer-to-peer kudos, or simply taking a moment to say thank you. Recognising employees for their hard work can have a big impact on workplace culture. Companies where celebrating success is the norm tend to experience higher morale, which leads to a workforce that’s more loyal and productive. 

Turning to tech for support

Technology is a double-edged sword for logistics companies. While it contributes to innovation, implementing it effectively can be tricky, especially when skills are lacking. But it’s worth persevering because the right digital tools can help businesses to thrive.  

For instance, predictive analytics tools can reduce operational bottlenecks by optimising vehicle routes or forecasting maintenance needs for fleets. Similarly, automation technology allows better warehouse management, which alleviates the impact of staffing shortages.

HR-specific tools can help transport and logistics companies to adapt by speeding up recruitment and development, along with promoting practices that promote loyal, hardworking workforces. By balancing automation with human development, businesses can stay competitive in the face of labour challenges. 

Strength in community and collaboration

Transport and logistics professionals aren’t in this alone. By fostering collaboration across organisations and with tech providers, the sector can develop shared solutions, from AI-driven recruitment strategies to employee performance platforms.

Labour shortages are a challenge, but there are ways to overcome them. By rethinking recruitment approaches, tactically retaining employees and integrating technology wisely, logistics companies can continue to grow in a complex landscape.

At MHR, we’ve got a proven record of working with transport and logistics organisations using our tailored HR and payroll solutions. If you’d like to learn more about that record, get the latest about how we support the transport and logistics industry.