At Kronos, we have the privilege of working with many enterprise clients across the Logistics, Distribution, Manufacturing, and Retail industries. As a result, we get to hear many stories about what our customers are experiencing within their daily routines and I'm going to share that with you.
In 3 years, almost 30% of the world population (roughly 2.5 billion people!) will be making purchases online. This is putting pressure on logistics and delivery providers to improve their processes in order to compete.
I am sure you are all aware of Amazon Prime? If you’ve ever ordered something from the app, you know it’s easy to use. Doesn’t it make you wonder why everything can’t be that easy? Your customers and employees are expecting the same thing.
This is one of the biggest challenges for your industry– how do you adjust to meet the demands for the growth in the industry?
The Amazon Effect:
Amazon is at the nexus of e-commerce, data, and logistics, with a drive to constantly improve its logistics network.
Amazon’s growth through acquisitions is disrupting markets — the Whole Foods acquisition prompted a $12 billion drop in grocery shares, while the PillPack acquisition triggered a $15 billion pharmaceutical share drop. Consumer retail may have taken the first hit, but customer expectations are upping the ante in every industry; and Logistics and Distribution is next.
Be Prepared…Amazon is Coming After your Business:
Amazon has long downplayed its delivery ambitions, claiming its own shipping and delivery services are only intended to “supplement” existing partners such as UPS and FedEx.
Now, Amazon is making it clear that it’s competing with those companies, having added “transportation and logistics services” to its group of competitors. Another angle spells out Amazon’s broader logistics play even clearer: Amazon has invested in 243 million square feet of distribution and fulfillment space at 744 operational centers across the globe. The trucking fleet is expanding rapidly with the purchase of thousands of trailers to shift goods between fulfillment centers. “Amazon Air” will soon have 40 Boeing 767-300’s in addition to the “Amazon Airport,” planned for a 210-acre site in Kentucky that will support up to 200 flights daily.
How Far Will Amazon Go?
With the Amazon effect continuing to grow, it’s critical to ensure your business has the right solution in place to help with your biggest challenges, including:
• Skills Gap & Labor Shortage
• Regulation & Compliance
• Innovation & Disruption
But first, it’s important to understand the modern workforce and how your employee brand alignment is key to winning the war for talent.
Today’s Job Market Realities:
Organizations today are facing a huge talent shortage. Transportation labor is an area with increasing shortages due to rapid growth in online shopping. Fulfillment demand of the e-commerce boom is also making warehouse labor extremely tight. And wages will continue to rise due to demand.
Then, there’s the high turnover rate. But it’s no longer just the truck drivers and fulfillment staff, it’s now the managers too. Companies need to be creative about how they attract and retain talent. Employee engagement programs that tie rewards to worker performance are effective at increasing job satisfaction and overall productivity, which lead to better retention.
This brings us to talent wars. Choice is the new competition for employers. And I don’t mean the great perks or fun new work spaces being created; with online review sites like Glassdoor, and the low unemployment rate, the conversation has shifted from “why should I hire you?” to “why should I work for you?”
So, let’s learn about what we can do to not just manage the realities, but deliver a superior employment experience.
Gen Z is anyone born in 1997 onward. With the current labor shortage and growing demand to fill jobs, Gen Z is a high potential generation of young workers, and it’s important that we understand them in order to develop strategies around how to work with them because in just 3 years, Gen Z will make up 20% of the workforce.
Start by looking at your technology through their eyes; can you find information as quickly as you can in Google? Is it as easy to use as Uber? These are the expectations that Gen Z will have once they enter the workforce.
Job openings in the space have increased 75% in the last 5 years, while compensation has increased only 16% during the same period. 60% of companies report a turnover in excess of 10% annually.
It’s no wonder managers are leaving given the complexities of managing a workforce in today’s realities. So how do you make their jobs easier?
There’s a lot you can do to help simplify your managers’ lives, improve retention, and make your company an employer of choice.
HR as Marketers:
Employer brand is key to both attracting and retaining talent. Corporate HR teams need to understand – they are responsible for selling the organization to potential, and current, employees. As such, they need to view their employer brand through the lens of a marketer.
• What is your employer brand, and why should an employee choose to work for you?
• Who is your ideal employee, and what do they want out of an employer?
While all of this may sound complicated, it all comes down to making sure you have the right technology in place to allow your employees to do their jobs as best they can. Building a strong culture of engagement and marketing it to the new generation of workers will be key to competing in this “digital world”. Both Kronos and our customers have proven, if you provide the right tools to your employees, you can be an employer of choice.