INVESTING IN THE FUTURE
The logistics industry is buzzing with concern about the current "talent crisis". Areas experiencing rapid growth
are increasingly faced with difficulty recruiting and retaining the future leaders of our industry. Nexus has experienced the shortage first hand in high growth regions,and we're sharing how we're addressing it.
It's easy to look at all the pressures facing supply chain management firms, such as propane prices, driver shortages and rising rents due to disappearing available warehousing space and only see compressed margins. The natural tendency may be to first cut costs by cutting investments in your workforce. However, as experts in the Human Resources field such as Peter Senge emphasize, a successful business needs to also be a learning organization, systematically in a state of constant adaptation and continuous improvement.
As unemployment is expected to reach a recent-history-low of 6.5%, jobs in the logistics field are estimated to balloon by 26% by 2020, compared to an average of 14% in other sectors. However, the US Census Bureau projects that 60 million Baby Boomers will exit the workforce by 2025, with only 40 million GenXers entering. This leaves a rather large gap, adding to an already alarming talent shortage. These are problems, that left untreated, will run deep, across all levels and will be long lived.
A SIMPLE SOLUTION
Invest. Invest in assisting existing employees transition from an industrial driven economy to an information/service based economy. Invest in developing hard and soft skills within your employment base. Invest in knowledge acquisition and employee retention. Create a culture that is thriving with reasons to stay loyal and your investments will pay off. Leaning into your existing employee base instead of cutting it out is the most proactive solution available.
WHY INVESTING WORKS
The cost of replacing an employee is estimated to be 250% of annual salary. What if we spent half of that nurturing future leaders, giving them incentive to stay with us? Long term commitments require effort from two parties. Nexus has many long term employees, many who have been with the company for 20+ years.
WHAT INVESTING ACCOMPLISHES
Nexus and our employees are not the only beneficiaries of this philosophy. Our customers reap the highest rewards. Employees who have been with a company year after year become experts in processes, customers, relationships and add value that simply cannot be achieved with a revolving door culture. Our ever constant mission is to deliver value to our customers at a competitive price. We will always strive to deliver the highest value proposition in each market to meet our customers' demands.