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Divide in T&L salary rise expectations, Hays reports

Employees say a 3 per cent increase or above would be in line with their performance


Transport and logistics (T&L) employers are signalling that more cash is coming their workers’ way, according to the latest Hays Salary Guide.

But the issue for the 60 per cent of employers saying they would go down this path is, by how much.

Employment services firm Hays notes that industry responses to its survey of expectations for the next financial year reveals a split between expectations.

Based responses from close to 3,500 organisations, 60 per cent of logistics employers say they will lift salaries in their next review, up from 41 per cent who did so in their last review.

But just 4 per cent will award increases of 3 per cent and above. Instead, 56 per cent intend to raise salaries at the lower level of 3 per cent or below.

For their part, 64 per cent of the logistics professionals Hays also spoke to say a raise of 3 per cent or more would better reflect their individual performance. 

Meanwhile, 86 per cent of logistics professionals are currently looking for a new job, plan to look or are open to new opportunities in the next 12 months.

A lack of promotional opportunities, lack of new challenges and concerns about job security are seen as the main drivers.

“The value of salary increases is driving a wedge between employers and employees,” Hays Logistics MD Tim James says.

“On the one hand, we have six in 10 logistics employers intending to increase salaries in the year ahead, which is a remarkable sign of the confidence employers exhibit today.

“On the other, professionals say the value of these increases is far less than they deserve.

“This is creating a gap between what employers will offer and employees say they are worth.

“This divide must be managed sensitively if employers are to retain staff and attract new talent in short supply.”

Hays sees several ways to help overcome this gap, but James identifies one strategy standing out above the rest: investing in the training, development and career progression of staff.

“After a year in which many skilled professionals put career plans on hold, they are focusing once more on their long-term goals,” he says.

“As our data shows, learning and developing new skills is now more important than a pay rise. A lack of promotional opportunities is also the primary factor driving professionals into the jobs market today.

“This makes re-investing in career progression pathways and staff development a sensible strategy for the year ahead.”

This year’s Hays message echoes that it told two years’ ago. Read that here

Hays notes that T&L salary increases “remain minimal”, though national transport managers and logistics managers with third-party logistics (3PL) experience are gaining somewhat, as organisation redesign distribution channels and to 3PL.

Other skills in demand belong to the likes of IT and systems experts but there are more closely focused trucking points made.

“Transport operations managers with experience in fast-paced domestic road operations, an understanding of cost levers across operations, especially truck utilisation and route planning, commercial acumen and expertise in NHVAS and OH&S are sought,” the survey responses indicate.

“There is also a need for reliable truck drivers, with turnover rising as people move roles for a higher rates of pay.”

Meanwhile reach forklift drivers and storepeople with a forklift licence and the ability to take on both warehouse and customer liaison duties are in demand.

More trade-exposed roles are seeing a need for skills, particularly soft skills, as sea freight disruption bites.

So, a search is on for “candidates with strong communications skills who can liaise effectively with customers to explain delays, retain business and find solutions.

“This trend is evident across warehousing freight and road transport.”

Hays advises employers seeking the right staff to make a competitive offer, noting candidates will refuse to leave current roles without seeing better working conditions, workplace culture, upskilling or professional development opportunities.

The full report can be found here.


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