The effects of uncertainty on logistics recruitment

Although the full impacts of a post-Brexit business environment on the logistics sector are yet to be fully realised, the level of uncertainty in the market has meant that it is difficult to define a clear plan for the future, particularly when hiring.

Key areas of concern for our clients in the logistics sector revolve around their employees, delays in shipments and the cost of infrastructure. So what does this mean in terms of recruitment and how can the logistics sector prepare for such challenges? 

Employees

Availability of labour

With the free movement of EU passport holders, drivers can currently pass through Europe easily. However, with new border controls, this could result in a shortage of drivers capable of running international routes. The need for commercial drivers is already at an all-time high, so in the event that this workforce does return to the EU, there will be a desperate need for the industry to attract more skilled drivers.

Costs

Tariffs

What restrictions will be in place going forward?  Trade tariffs could increase the costs for exporters, which in turn could be pushed onto hauliers and logistics providers. At the same time, this could reduce the competitiveness of UK products and services, reducing volumes.

Fuel

This is always an important factor for hauliers and transport service providers. The strength of the pound may vary post-Brexit and potentially weaken, reducing the purchasing power for oil. 

Efficiency 

Border controls

Depending on any new administration and physical controls created to align with a new agreement, this may have a larger effect on the efficiency of UK logistics. With the potential that all food and agricultural exports will be checked before entering the EU, there could be significant effects on timings.

International driving permits

According to the FTA: “under European law, unless an agreement is reached, there will only be 103 international haulage Permits to cover the 300,000 journeys made by British trucks to Europe each year.”  
In order to overcome these challenges, it has become key to adopt a somewhat flexible approach to talent management.

Preparing for success in a challenging market 

From the conversations we have with employers operating in the logistics sector, many have developed a Brexit plan that covers potential implications across warehousing, trade tariffs, vehicle routing, and employees.

We have seen many manufacturing and stockist-based operations recruiting for strong import/export knowledge. Most of these also have the ambition to move to AEO status, which will drastically reduce cost and time in terms of customs clearance.
According to the CIPD and in line with our research on the future workforce, one of the big impacts has been an increase in the focus on upskilling existing employees. In addition to this, sponsoring training and/or qualifications for hard-to-fill positions and skill sets. This not only ensures you have the necessary skills in-house to navigate upcoming changes but is also a positive tool to retain and attract top talent. 

Looking forward: key skills 

A team of talented logistics professionals is the key to success in any economic environment. Build the foundations for a team equipped with skills to operate within a tough marketplace and overcome the challenges of uncertainty in logistics. Good global import/export knowledge on your side will be key to understand the total landed cost of products and/or services. These skills will help navigate the new customs requirements and support your Brexit strategy.
Upskill in areas such as trade/import/export controls by hiring customs compliance and tariff specialists. Build a strong employer value proposition to attract and retain drivers, and professionals skilled in transport management and European carrier management. Finally, resource planning will be another key aspect of every logistics business so hold onto those skilled in this area. 
If you would like to discuss how we can help streamline your recruitment processes and source the best talent for your team, contact your local Michael Page office. Alternatively, submit a job spec and one of our consultants will be in touch. 
Phil Townend
Senior Manager Michael Page and Page Personnel Logistics 
T: +441908302416
Jon Weller
Senior Manager Michael Page Procurement and Supply Chain
T: +44 161 829 0388