An uncertain market: How your hiring strategy might be affected

The uncertainty surrounding Brexit has created a number of challenges within the UK logistics industry, for both professionals and employers alike. However, despite this uncertainty, we have seen no change in the demand for top talent in the logistics sector. Business continues as usual and at an ever-increasing speed, with that, so too does the need to hire the best candidates to help to drive efficiencies in logistics.

Migrant labour in logistics

Despite the lack of clarity in the market, there has been a continued demand from businesses to hire in logistics over recent months, particularly for business crucial development-focused positions. Employers that have traditionally hired EU candidates are still eager to hire from these areas. This adds to the concern about the potential drop in the availability of unskilled migrant labour, in particular drivers in an already driver-short market. Where we have seen the greatest impact on businesses is future-planning of labour management and especially planning for peak operations. 

There has been much debate about the impact of a no deal Brexit on the UK logistics industry, including delays in cross-border and port transit times, customs requirements, lack of EU specification pallets and labour, to name but a few. The bigger challenge that the industry is facing is the lack of clarity around future trade between the UK and EU, so businesses can enact plans to ensure there is a direction for priorities. 

Utilising technology to alleviate the pressure of uncertainty 

Technology is evolving across all sectors. However, within logistics, the utilisation of technology can vary dramatically from the use of pen and paper to fully automated distribution centres, with the main determining factor being cost. This could be seen as something daunting to shop floor labour. However, in logistics, it will be beneficial for the industry, particularly for maintenance and analytical tasks. Automation and technology reduce time spent focused on data analytics and forecasting, providing more time for the human element of operations. 

When it comes to technology, there isn’t a one size fits all with suitability and cost. However, embracing the most suitable aspects of automation could assist with the demand for labour. An automated distribution centre can continuously fulfil customer orders, increasing or decreasing speed in order to accommodate the predicted volume, while maintaining a fixed-cost base, removing the fluctuation in availability and cost of labour. When technology works well, it can increase productivity and efficiency, reduce costs and improve profitability. 

Technology isn’t necessarily a solution that can fix all labour issues that a business may have had before its implementation. Automation is meant to enhance and streamline, and for it to be effective, it requires underlying operational processes to be standardised. 

Changes in available talent 

Availability of labour isn’t an exclusive problem within logistics. The UK recruitment market is experiencing the lowest unemployment rate since 1974, at under 4%. The job market in the UK is currently thriving, which means that there are plenty of positions to be filled, but not always the perfect candidate with the ideal skill set available. While employment data is an indicator of the current recruitment market, it doesn’t always provide guidance on what the market will look like in the future. 

According to ONS, the number of workers from EU8 countries in particular has fallen to the point to which there are more people leaving the UK, and this can be inferred to a reduction of skilled labour.

Over the last couple of years since the UK referendum, there has been a level of reluctance to invest in major CAPEX projects due to the uncertainty around the outcome of Brexit. Once an agreement between the UK and the European Union has been made, companies may be more likely to give the go-ahead for investment plans that have been on hold for the last year. The recruitment market may remain strong and we would expect an uplift in interim project requirements to deliver certain investments. 

Overcoming the challenges of today’s market

A team of talented logistics professionals is the key to success in any economic environment. Build the foundations for a team equipped with the skills to operate within a tough marketplace, and you will be well equipped to overcome the challenges of uncertainty in the logistics sector.

Good research and insight into your target market can ensure that you maintain a competitive edge with knowledge on your side. This information will help you to navigate a challenging recruitment landscape market, fulfil your requirements, and support your post-Brexit strategy. This is crucial when hiring top talent from different areas of the EU during Brexit negotiations. Building a strong employer value proposition will attract and retain the most suitable professionals from across the globe. 

If you would like to discuss how we can help provide guidance, insight, and streamlining to your recruitment processes whilst sourcing the best talent for your team, contact your local Michael Page office. Alternatively, submit a job spec and one of our specialist recruitment consultants will be in touch.

Phil Townend
Business Director, Michael Page Logistics