Competition for workers has never been so fierce. Even before Covid struck, there was a shortage of drivers and other key logistics workers. During Covid, the shortage became a major reality when millions of Americans retired early or left the labor force altogether. In fact, the U.S. Bureau of Labor Statistics reported that Force Participation Rate took a substantial hit during the pandemic. Record numbers of employees have resigned positions to look for better pay elsewhere — and this has been particularly true in logistics and transportation. Between Sept. and Nov. 2021, approximately 13.1 million Americans quit their jobs. Of those, more than 11% worked in logistics and transportation, often citing pay or physical demand issues as reasons for leaving. [1] Even today, the US Unemployment Rate hovers near an all-time low of just 3.6%. [2]
On the flipside, consumer demand and manufacturing growth have not slowed down post-Covid. In transportation, there are consistently more shipments available than drivers to haul them. This high demand is also reflected in the workload for staff that assign capacity and manage projects. Yet, the industry perception and latest forecasts still indicate that while demand may soften somewhat over the coming year, the acute labor shortage will continue for the foreseeable future. With transportation and logistics roles chronically short-staffed, finding new strategies to cope is paramount.
Technology can help fill the gap
At Momentum Transportation, an award winning Landstar Agent, we are helping our clients close the talent gap in many different ways. The first is through the use of technology.
Not many years ago, even tracking long haul shipments was all done manually. Today, technology has transformed that process, with tracking and monitoring of shipments every step of the way to reduce labor costs and keep everyone informed in real-time. Technology has become a key enabler of almost every process in transportation and logistics. The efficiencies that technology provides helps Momentum bridge the talent gap and provide world-class service to our clients.
Momentum uses a project management platform for mission critical customers that allows us to house all information in one place — saving many man-hours for our team and for our customers. Not only does it enable Momentum teams to drive efficiency internally, but our customers have a single dashboard for ship plans, tracking, PODs, financials and more. No more chasing information across different websites, many phone calls, or impromptu meetings.
We also leverage transportation management productivity tools to automate many types of workflows across our business from dispatch operations, shipment tracking, network optimization and billing — allowing us to accommodate customer growth without needing additional staff. It also makes all our internal processes work more quickly and smoothly and this also results in benefits for our customers.
Outsourcing transportation allows customers to leverage Momentum’s expert team to solve their own internal talent gaps
Momentum provides outsourced transportation management in areas we have deep expertise, like nationwide LTL shipment management across multiple carriers and commodity types. When our customers outsource, they reap many benefits.
- Save time and resources. First and foremost, they don’t have to manage individual LTL carriers and transactions on their own. That means that they can devote more time and resources to their core business.
- End-to-end project management and expertise. One of our areas of deep expertise is in large, complex heavy-haul vendor shipments into JIT construction sites. We keep all stakeholders aligned and on schedule, so our customers can be confident that everything is running smoothly.
- Leverage our technology investments. Momentum has invested in mission-critical transportation-related technologies that make every aspect of transportation and logistics more efficient. These best-in-class technology investments let clients gain all the advantages of cutting-edge logistics technology — without having to buy it yourself.
- Optimized loads and routing. Momentum can optimize your LTL network by analyzing your daily LTL shipments in real time, and converting them into on time, multi-stop truckload shipments at a lower cost and carbon footprint. With our vast network of carriers and over 11,000 Landstar drivers, we offer safe, reliable and cost effective capacity in a tight market.
- Expertise on tap. We are on hand when you need advice. We’re happy to consult with our clients on all transportation-related challenges. Along with our transportation services on project freight, we will do site visits, route surveys, meet with shippers, coordinate and organize projects — freeing key customer team members to focus on their primary role like engineering, construction, manufacturing, and more.
Working Smarter: Momentum uses every tool at our disposal to retain and attract workers
At Momentum Transportation, an award-winning Landstar agent, we’ve built a strategy to attract and nurture talent so that we provide the highest levels of service to our customers. Our existing staff are the most valuable assets our company has. Turnover has a high cost — not only in the relationships and knowledge of the lost employee, but the investment in recruiting and training someone new. That’s why we take steps to show current employees how much they are valued.
Given that the labor shortage has placed the burden on workers to work longer and harder in order to keep up with demand, tangible expressions of appreciation are crucial. Timely salary adjustments based on local market rates to acknowledge outstanding performance cannot be overstated. Losing a key employee due to a wage disconnect is entirely avoidable. Not only that, you likely will not have a chance to correct a wage disconnect before you realize it is too late. By rewarding employees before they become dissatisfied, you prevent them from looking outside your organization for higher wages.
Ongoing training and development, as well as a commitment to promoting from within, shows your team that there is opportunity for them to grow their skills and advance. At Momentum, all job postings are shared internally, and we encourage everyone to apply for positions, even if the position is on another team. Momentum has found that this raises morale across the board, not just for the employee that gets promoted. By developing your employees in multiple departments and functions, they have greater domain knowledge across the company as a whole — and it gives your company more flexibility to make the most of your labor force and fill in when there are gaps. Our efforts produce results: over half of our employees have been at Momentum for five or more years — and 30% have been here more than 10 years.
Momentum has monthly employee recognition awards for each functional team. In addition, we name an employee of the quarter and employee of the year, providing monetary bonuses and travel awards that drive retention and increased satisfaction. We also make time for fun to alleviate the stress of demanding jobs — from catered lunches and happy hours to wellness contests and sponsored outings to local sporting events.
No matter how well you manage existing staff, recruiting the right talent will always be crucial to managing and growing your workforce. Use every recruiting tool at your disposal. Some of the key strategies are to tap into staffing agencies to fill short-term or long-term needs. LinkedIn is also a great recruiting tool to find candidates with qualified work experience. Momentum also attends career and internship fairs at local colleges on a regular basis.
With an end to the labor shortage nowhere in sight, Momentum is here to help. Let us be your partner in outsourced transportation and logistics. To find out how we can assist you with your mission critical transportation needs, call us today at 1 (866) 224-7340.
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