The logistics hiring market: A mid-year review

The logistics industry changed drastically during the pandemic. The way consumers shopped shifted completely, with a significant move towards online purchasing, meaning that businesses across the country were forced to develop new strategies with very little planning time. Companies also saw the demand for goods fluctuate on a near-weekly basis and staff shortages were higher than ever before.

But how is the market coping with this shift in 2022? Here’s our mid-year market update into the logistics hiring landscape, covering trends in job roles, skills and gender diversity.

Skills shortages affecting the hiring landscape

Pre-pandemic, employers in the logistics industry were struggling to find skilled workers, and this continued to pose a challenge when Covid-19 hit. Now, in 2022, demand for shipping goods has significantly increased, while the talent pool of skilled workers has shrunk, with employers still finding it difficult to attract the skills they desperately need.

“The logistics sector is the busiest and most competitive we have ever seen it – but the market is incredibly candidate-short. A range of skillsets are in high demand, especially e-commerce distribution experience, due to the huge shift to online shopping. In this market, it is necessary for hiring companies to pay above market average to get the best candidates, and it is more important than ever to run a tight recruitment process, keeping candidates engaged every step of the way.”

- Charlotte Dungworth, Manager, Michael Page

Across all industries, we’re seeing that the best talent on the market will have multiple offers at any one time, and even then, are often won back by dramatic counter offers from their current employers. With these unprecedented labour shortages, what more can businesses be doing to convince the best candidates to come onboard with them?

One way is to develop a standout employer value proposition (EVP), which we look at in detail in our recent Talent Trends eBook. The report presents the findings of our survey of over 2,000 UK professionals, with a focus on what factors influence job acceptances and rejections. Download your copy today to find out more.

A shift in skillsets and growing sectors

Another major reason logistics employers are struggling to find qualified workers is that the skills required to handle these jobs have changed dramatically as the logistics industry continues to evolve.

Innovative technologies, blockchain, robotics and workplace automation have all helped to streamline many logistics processes, and improved workplace efficiencies. However they’ve also changed the level of skills needed to be successful on the job. More and more logistics employers want employees with tech-related skills. There's always been a demand for digital skills at higher-level positions, such as purchasing managers and inventory control managers, but now even some lower-level positions require these skills.

“We know the logistics landscape is evolving. We also know that the industry should not take a ‘one size fits all’ approach to the adoption of technologies. It is vital in that sense, for companies and employees to remain on top of the key logistics technology trends and invest learning and development so they can make the appropriate decisions to future proof their supply chains. A growing industry requires a growth mindset.”

- Dean Rose, Director, Michael Page Logistics

As Charlotte previously mentioned, the growth in online shopping has contributed to an increase in the number of warehouses and other logistics premises in the UK. Recent data from the Office of National Statistics (ONS) also shows that the number of business premises in the transport and storage sector is up 88% in the UK when comparing 2011 to 2021, and up 21% when comparing 2019 to 2021.

The growth of the transport, storage, and retail sectors has accelerated in the last two years, with job adverts for both also up significantly following the UK’s exit from the EU and the onset of Covid-19.

Most in-demand job roles

In our salaries and skills guides for the logistics hiring market that we put together in Q1, we showed that the top 10 most in-demand job roles at the beginning of the year were:

1. Warehouse manager
2. Transport manager
3. Warehouse supervisor
4. Transport planner
5. Logistics manager
6. Transport supervisor
7. Operations manager
8. General manager
9. Export coordinator
10. Fleet manager

This list hasn’t changed much over the last 6 months, as we’re still seeing huge demand for these job titles with the clients we work with. However, we have seen a significant uplift in demand for import and/or export coordinator roles.

“There has been a significant increase in the number of freight and customs jobs being advertised prior to the pandemic. This is primarily the result of supply chain adjustments post Brexit combined with more general skills shortages bought on by the pandemic. Where the UK never had to deal with customs clearances on imports or exports in and out of Europe, Brexit has changed that, leading to a rise in demand for customs and freight management professionals. These roles are critical to the effective functioning of UK supply chains, both from a consumer and an industry point of view.”

- Reece Clarke, Business Director, Page Personnel Logistics

A spotlight on diversity, equity, and inclusion

There’s always been room for improvement when it comes to gender diversity in the logistics sector. Looking into our own data, we can also see hiring trends for different industries. Below is the percentage of women working in logistics accordingly to industry:

• Energy and natural resources: 71%
• Not for profit: 54%
• Leisure, travel and tourism: 42%
• Life sciences: 40%
• Public sector: 38%
• Technology and telecomms: 36%
• FMCG: 29%
• Industrial and manufacturing: 23%
• Retail: 22%
• Healthcare: 22%
• Transport and distribution: 22%
• Professional services: 20%
• Property: 17%
• Business services: 13%

There has been a global drive to improve gender parity in the business world, but despite the rise in the number of women in a variety of industries, the logistics sector still remains a male-dominated space. In 2022, it’s vital that businesses take gender equality and equity more seriously.

“One approach that businesses can adopt is offering more flexibility for its female workers, especially working parents. It’s also worthwhile for organisations to look at how they can ensure they’re providing more female role models, especially in senior level positions. This could be achieved by being more creative when it comes to finding and hiring those with the required experience. Instead of trying to attract talent from competitors and other logistics companies, widening the net to attract female talent from other industries where they have transferable skills may provide a significantly larger and more gender diverse talent pool to choose from.”

- Laura Frost, Business Manager, Michael Page Logistics

What next?

Despite the ongoing candidate-short market, at Michael Page Logistics, we’ve seen huge growth in the sector, with a 33% increase in the jobs posted and a 76% increase in the number of placements secured compared to the same time period last year. We can help your business find the talent needed to thrive in this year and beyond, so get in touch with our team of dedicated consultants to start your hiring conversation today.

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