Attracting and retaining top talent is paramount for any company – a business is only as good as its people. However, the past couple of years have brought labor shortages to organizations across industries. So what is causing so many labor shortages, and how do we overcome it?
 
The COVID-19 pandemic was a major factor contributing to the American labor force shortage. In 2021, 47 million workers quit their jobs, many in search of an improved work-life balance, flexibility, increased compensation, and better company culture. This transformational event, coined The Great Resignation, left many organizations scrambling to find new ways to attract talent and improve company culture.
 
While these issues span every facet of the supply chain, it’s particularly affected the trucking industry. Today, there are roughly half a million job openings in the warehousing sector alone, and Deloitte anticipates a growth of another million by 2023. And if that did not get your attention… In 2021, according to The American Trucking Association, there was a driver shortage of 80,000 across the United States. And if this current trend continues, experts estimate the trucking industry could need more than 160,000 drivers by 2030. These numbers would alarm any organizational leader charged with recruitment, but as Chief People Officer at Forward Air (Forward), a leading asset-light freight and logistics company, I knew we had to pivot quickly to ensure we’d thrive despite these challenges.
 
After continued efforts and new initiatives, Forward proudly has reduced full-time employee turnover every year for the past four years, achieving a 30% reduction in turnover during that span. Low turnover is key for any organization no matter the industry, as it typically costs 6 to 9 months of their salary to replace an employee.
 
So what does it take to hire and retain top talent, especially during labor shortages? Let’s take a look at initiatives that will help your organization attract new talent.
 
Better Benefits & Values
 
Top talent understands the value they bring to their organization, and they demand fair compensation for said value. Since the onset of the COVID-19 Pandemic, Forward has invested millions of dollars in enhancing total rewards and adopting new technologies to maximize work function efficiencies and overall employee engagement. As a ground transportation company, Forward heavily relies on its people, from the office to the dock to the drivers on the road, to transport consumer goods, and it remains a top priority to keep these teammates excited to be on our team. By listening to and implementing the benefits employees value most, Forward has been able to maintain a lower-than-average driver turnover rate and remain an exemplary professional home for our teammates, full time or contracted. These benefits include:
 
● Pay Transparency & Increases: More companies are adopting pay transparency, by letting other employees (and sometimes the public) know the salaries of their employees. This develops trust, diminishes pay gaps, and can improve employee productivity. According to Lattice's SOPS report, the number one driver of employee turnover is compensation, with 55% of employees leaving for a job with higher compensation. 
 
● Consistency & Work-life Balance: Poor work-life balance leaves organizations with major consequences, as it results in higher employee turnover. On the other hand, employees who are given ample scheduling and work flexibility are 4 times less likely to become a retention risk to your organization.
 
● Tools & Resources: Employees are more efficient and satisfied with their job when they are provided with the proper tools and equipment, which will help reduce employee frustration and turnover.
 
What does this look like in practice? Not only does Forward provide competitive compensation, but we are also focused on being transparent about pay and earning potential. We have partnered with the industry’s best compensation benchmarking providers and ensure regular reviews of the market changes and competitiveness of our pay practices. This type of transparency reduces uncertainty and fosters trust, which begins the partnership process on good footing.
 
An improved work-life balance is one of the leading factors contributing to The Great Resignation, which led us to provide our teammates with maximum flexibility to work hybrid schedules. While the pandemic was an immediate driver of adopting a flexible model, we have learned a lot over the past few years and have no intentions of reverting to a full-time in office dynamic. Providing our teammates with enhanced work-life balance, while still getting the goodness of in person collaboration, has been a winning strategy for us.
 
Providing the proper tools is necessary to promote employee retention, which is why Forward placed a large emphasis on improving our internal platforms and technology to enhance our team’s ability to be efficient in their day-to-day and minimized wasted time on repetitive manual processes.
 
Better Culture
 
Retention starts at the recruitment stage. Leaders should hire employees based on their alignment with the company culture, core values, and objectives.
 
Forward is dedicated to cultivating and maintaining their healthy company culture and has a specific committee that is working to cater to the diverse audiences within their organization.  From designating maternity rooms for nursing mothers for increased privacy in the workplace, emphasizing the importance of mentoring younger generations, and supporting military veterans through employment opportunities and fundraisers, Forward showcases its dedication to facilitating a professional home for all.
 
Growth and Advancement Opportunities
 
Leaders should encourage the development and implementation of programs designed to provide their team members with opportunities for learning and advancement.
 
Forward employees are no exception, which is why we recently implemented the Dock-to-Driver training program. This training program is designed for tenured employees who have a desire for growth opportunities outside the traditional management route. The program allows current dock workers to begin training as local pick-up and delivery drivers. This enables them to gain paid experience as they continue to work toward their full CDL license.
 
This is one example of the many programs we are developing and employing to drive career advancement for our teammates. Forward is very committed to developing our people and promoting from within. Our ability to grow the next generation of leaders is paramount to our continued growth and success. This dedication fosters trust and loyalty, leading to low turnover rates and high job satisfaction.
 
Open Communication & Engagement
 
Keeping employees engaged is one of the most successful ways to retain top talent, and promoting open communication will further promote trust and collaboration. Providing employees with updates & feedback will foster a culture of transparency and will also increase overall engagement.
 
To deliver on the promise of transparency, Forward has begun quarterly town hall meetings for its employees, as well as a driver board that allows senior leadership to meet with elected representatives from the fleet to collaborate on and address improvement opportunities. The quarterly townhalls review company successes and opportunities, along with current end-of-year goals and their path forward. Forward also solicits feedback after each town hall, to gain further insight into employee satisfaction.
 
Conclusion
 
There are many tactics to attract talent to your organization, but retaining this top talent requires an environment worth working for. Top talent is more likely to stay engaged and loyal to employers if provided with fair benefits, including a healthy work-life balance, transparency, a healthy company culture, and sufficient tracks for professional growth.