Recruiting the next generation of logistics leaders

Generation Z (the generation born between the mid to late 1990s and the early 2010s) is the largest generation of all time. Thus, as Gen Z leaves higher education and enters the workforce, they have the power and numbers to truly shape workplaces. In logistics in particular, 25-33% of the workforce is at or nearing retirement age, meaning that a large swath of the industry will need to be recruited in the coming years, just to maintain replacement level.

This shift is even more important when we see the emergence of corporate C-suite leaders (company’s top management positions) focusing on supply chain management as integral to their companies' successes. The pronounced focus on supply chains may lead to a need for more logistics talent than ever before. So, how can logistics companies encourage the next generation to start a career in logistics? And what should these companies expect their youngest employees to demand in return?

Gen Z is pessimistic about their career opportunities

While salary remains the most important factor when deciding on a job, Gen Z values salary less than every generation before. Instead, the generation is split when it comes to prioritising between a job that might be more interesting, with a job that would pay more. That said, Gen Zer's crave stability, even though they don't believe that it is attainable for them.

According to a 2022 study by McKinsey more working members of Gen Z than any other generation are working multiple jobs (25% as compared to the 16% of all other workers), and slightly more than half (compared with 36% of all workers) are doing independent work. However, a majority of those surveyed responded that they would prefer to work as a permanent employee of a company (56%). Moreover, 45% of Gen Zer's are concerned about the stability of their employment and are more likely to report that the pay they receive does not allow for a good quality of life.

Of course, Gen Z is young, and thus relatively new to the job market, which could be one explanation for their perceived instability. However, in the United States, national statistics on first-time home ownership (up to the age of 56 in 2021 from 36 in 1981) lends empirical evidence to support Gen Z's pessimism about their earning and saving potential.

Recruiting the next generation of logistics leaders

Given the concern that Gen Z feels about their career opportunities, the logistics industry can provide a perfect antidote to their worries. According to Glassdoor, Gen Z favours working at larger, more established companies, likely as they are more risk averse than previous generations. Additionally, they want to work for more socially conscious organisations that not only acknowledge but also address macro-issues like climate change and systemic inequality.

Thus, in order to attract the next generation to careers in the logistics industry, logistics leaders should prioritise the following:

1. A focus on a socially sustainable workplace culture
2. Career development and internal upskilling
3. Digitalised business processes

By creating a focus and external communication around these three points, Gen Z is more likely to see themselves thriving in a career in logistics, all for the benefit of the future of the industry.

1. A focus on a socially sustainable workplace culture

A survey by Glassdoor found that 75% of workers aged 18-34 (so both Gen Z and Millennials) expect their employers to be opinionated about social issues. In fact, they have higher demands than any other generation on taking a stance and contributing both financially, and in volunteer hours, to their communities. While 81% of younger workers expect their employer to support groups in their respective communities (compared to 75% of total workers), 72% of young people expect their employers to provide work time and resources to advocate for positive social change (as compared to 51% of other age groups).

Additionally, Gen Z is redefining workplace benefits, as they are more interested in personal wellbeing than financial gain. In line with their desire for more work-life balance (50% of Gen Z demands this from their employers, as compared to 36% of the general population), Gen Z is looking for benefits that extend beyond the conventional; such as unlimited vacation days, work-from-anywhere programs, and free office lunches. Additionally, growing up with the news of recessions, wars, and a global pandemic; 55% of American Gen Zer's report having received a diagnosis and/or treatment for a mental illness. In turn, they are also the most likely generation to report being unable to afford mental-health services.

Thus, a socially sustainable workplace can look many ways. For example, some companies may choose to sponsor employee's mental health services, while others might provide paid volunteer days or remote work programs. Indeed, some companies may have the ability and choose to provide all these opportunities, and many more, to their employees; making them a more attractive workplace than their competitors.