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The Importance of Employee Engagement in the Logistics Sector
In the drive towards automation and the digitisation of the logistics industry, there is a danger that employees are left behind. However, businesses that neglect to invest in their staff risk low employee engagement and high staff turnover rates.
The rapid growth of the UK’s logistics sector has led to an increased demand for skilled staff, making retention a real issue for businesses. In the UK, the number of job vacancies in the supply chain industry was estimated at 819,000 for the first quarter of 2025, according to the Office for National Statistics. This is a decrease of 9,000 from the previous quarter but is a vacancy rate still higher than pre-pandemic levels.
As Lee Collinson, Head of Manufacturing, Transport and Logistics, Barclays Corporate Banking points out, “Many businesses across the manufacturing, transport and logistics sector have enjoyed a strong 2024 and expect this to continue into the new year. Nevertheless, challenges remain around the shortage of skills and labour, and the sector will have to manage the recent rise in business taxation.”
The Benefits of an Engaged Workforce
One of the most significant issues facing the logistics industry is a lack of engagement rather than career dissatisfaction. A recent Gallup poll found that 66% of the logistics sector love their chosen career and 69% would recommend it to others, however only 28% report feeling engaged in their role. This matters because low engagement leads to higher staff turnover and lower productivity.
Creating a motivated workforce brings other benefits too. An engaged team works better, they are more resilient, agile and responsive to operational challenges. Effective teamwork is central to supply chain efficiency, and when each touchpoint of the journey is a point of vulnerability, synching across teams is vital.
Technological advances are boosting efficiency, and an engaged workforce means that those operational efficiencies are maximised. A recent Oxford Economics study found that logistics could boost UK growth by up to £7.9 billion per year through productivity gains by 2030.
In a dynamic sector where employees are under pressure from increased workloads and rapid technological advances, a cohesive staff strategy is vital for ensuring that people are properly supported in their roles.
Strategies that Increase Staff Engagement
Competitive salaries are important for attracting and retaining employees, but other factors can have a bigger impact on staff engagement.
Good communication is the foundation for building a positive work culture. Open communication and encouraging feedback across teams build trust and can help businesses identify and address challenges. Keeping contractors up-to-date and including them in any decision-making processes is also central to building a cohesive team.
A positive workplace offers opportunities for professional growth. Continuous learning and upskilling, benefits businesses as well as individuals. This means that staff members stay up-to-date with regulations and technology and can work better.
Fostering a sense of ownership, encouraging staff to take the initiative, and valuing every role is central to staff engagement. A proactive workforce is also more responsive to operational challenges, which means teams provide a better service too.
People management initiatives such as Investors in People (IIP) provide a framework for measuring and building staff engagement and can help businesses identify areas of improvement. The IIP process is robust and rigorous and in an industry that is vulnerable to high staff turnover, job instability and driver shortages, achieving Platinum IIP is a challenge.
For IIP Platinum-rated provider Invo Fulfilment, their people-first approach is central to their success as a business, as CEO Arjen Cooper-Rolfe, explains, “People who work with us are valued, supported and empowered, and it’s this which ultimately drives our success. Platinum for people means platinum for service, so no matter how challenging things get this year, our customers know they have a fulfilment provider they can rely on.”
The combination of rising staffing costs and workforce shortages means harnessing your existing staff effectively is the best way to boost productivity without increasing resources. After all, an engaged and motivated workforce is not just good for the individual it’s good for customers, and ultimately good for business.
