Managing logistics has always been about managing costs, and costs keep rising. The latest State of Logistics Report from the Council of Supply Chain Management Professionals shows that total U.S. business logistics costs soared 19.6% to a record-breaking $2.3 trillion in 2022. While the latest LMI data indicates positive outlooks on industry growth, the costs of doing business will stay high for some time.
Amid this economy, logistics companies must think strategically about running and growing their companies. That includes managing one of the largest costs: employment. Knowing the true cost of an employee helps you budget effectively and allocate resources appropriately in a time that demands business resiliency.
Employee costs start with hiring. Company leaders often want top talent but jump into the market with only a vague idea of hiring costs. What does getting the talent you want really cost, and how can you calculate it for yourself?
Setting Logistics Hiring Expectations
The past several years have shown that logistics professionals need help finding and retaining managers, knowledge workers, and executive talent. Descartes research uncovered that 55% of logistics organizations found filling knowledge worker jobs “extremely hard,” representing a tricky chase for the best people.
When your company starts pursuing new talent, you must account for all key considerations to make a good decision quickly. What do you need to consider?
Analyze the Logistics Industry Hiring Market
Logistics leaders must keep a pulse on shifting industry trends affecting talent acquisition, as industry knowledge lays the foundation for making smart hires.
For instance, multiple logistics companies’ reductions in force have led to an influx of talent on the job market: roughly 30,000 logistics employees at the end of 2023. This supply-heavy talent market allows even tightly budgeted companies more opportunities to attract top-tier performers.
Also, monitor larger market dynamics to understand changing employee costs. For instance, we recently analyzed the Freight Waves Power Price Index to understand the power balance between shippers and carriers. Heading into Q2 2024, the Index shows shippers hold a significant advantage, meaning that sales-oriented roles are in higher demand.
High salespeople demand without sufficient supply leads to fiercer competition to secure top talent. Companies can respond by positioning themselves as employers of choice, supported by offering competitive compensation packages, highlighting career advancement opportunities, and developing an attractive company culture.
Define Job Requirements for Your Logistics Role
Knowing the industry’s state, you can define your job’s roles and requirements to fit the market. Include information like:
- Required skills, abilities, and experience
- Particular qualifications or certifications (like CSCP, CPIM, or Lean Six Sigma)
- Expected day-to-day responsibilities
- Career advancement opportunities
- Team and company culture
Keep the job description’s language simple and easy to understand; too much industry jargon could deter great candidates from applying. The more specific you are about expectations and job requirements, the better—it’ll help you find better-fit candidates from the outset.
Once the right candidate appears, be ready to move. Prepare by writing down the most important requirements and matching your role expectations to clear, measurable KPIs and other performance metrics. It’s great to aim high, but ensure the goals you choose reflect what’s genuinely needed to do the job well.
Account for Location’s Impact on Logistics Hiring
Your location can significantly influence employee availability and hiring costs. Cost of Living (COL) differs greatly across the US: For example, the COL in Des Moines is 42% lower than New York City’s. Your offer must align with COL standards while accounting for your region’s worker supply.
Remote hiring can help you reach talent in different regions, but it may not be an appropriate choice depending on the role, your company’s culture, and other factors. Offers must still be competitive to your candidate’s region.
Craft a Competitive Total Compensation Package for Your Logistics Role
Determine a competitive salary range based on role and location. An appealing salary helps entice top talent and avoids the expensive turnover that follows underpaying talent.
That said, base salary is only part of the story. IBISWorld reports more than 21,000 3PL carriers operate in North America. With stiff competition, you must offer more than money to win over the best people. Total compensation, including benefits and paid time off, and a strong workplace culture can make the difference for a top prospect.
Evaluate Your Logistics Talent Recruitment and Acquisition Strategies
If you want the best talent, speed to market matters: Top logistics executives last about ten days on the job market. You need recruitment processes and budgets nailed down to make fast, smart decisions.
Companies can keep recruitment internal, leaning on their staff to attract and hire talent. They can also hire an external firm to help them manage the recruiting and hiring process. Partner firms often bring pre-vetted talent pools and insights from recruiting experience to make hiring easier.
Discover Total Costs to Hire Top Logistics Talent With Our Hiring Cost Calculator
Hiring requires collecting a lot of information and making many decisions quickly. Few resources are available to help you run this process efficiently.
That’s why we created our Hiring Cost Calculator.
Give us a few key data points, and we’ll show you what it costs to secure top logistics talent.
We start with data like:
- Your industry
- Whether you’re hiring today or in the future
- Role type
- Location
- Base salary range
- Talent recruitment options
Based on your data, we’ll walk you through:
- The total costs to hire that employee
- Differences in costs between internal and external talent recruiting
- Expected retention rates
- The average time needed to fill the role
From operations managers to C-suite executives, you can budget for total hiring costs and prepare your best offer for today’s job market.
Master Your Cost Per Hire And Secure Top Talent For Your Logistics Firm
The many factors in logistics hiring result in costs that are probably higher than you realize. Use our Hiring Cost Calculator to understand how much that next employee will cost and see how your internal recruiting costs compare to those of an external recruiting firm.
Top talent is in the market. Budget wisely and get them at the best price.
—
Ready to learn more about your hiring costs and how a recruiting firm can help? Fill out the Hiring Costs Calculator and chat with a Top Talent representative today.