Freight Recession Fuels Talent Exodus- How to Stabilize

Gartner’s latest Logistics Talent Monitor reveals that the same factors attracting talent— like competitive pay and promises of better work-life balance—are also driving employees to leave.

The ongoing, years-long freight recession has created sustained volatility in the logistics marketplace and challenges for companies trying to stabilize their workforces.

In the first quarter, national trucking volumes tumbled 13.8 percent from the year prior, the best year-over-year reading since the third quarter of 2023, according to the quarterly U.S. Bank Freight Payment Index.

The volume decline was an improvement over the 15.7 percent dip in 2024’s first quarter. Total shipments have fallen for 11 straight quarters.

The issues presented in Gartner’s Logistics Talent Monitor underscores a broader concern across industries reliant on specialized talent: how can organizations meet evolving workforce needs while remaining resilient in the face of these continued freight headwinds?

“Gartner has illuminated a major issue in the global logistics workforce,” said Jack Freker, CEO, Lean Solutions Group (LSG), a provider of strategic support services across the transportation, logistics, and retail industries. “Based on the report, it’s clear to us that logistics employees are being driven from jobs for the very same reasons they were attracted to a new job in the first place. To break this cycle, companies must address pain points like unclear roles, poor onboarding and lack of advancement opportunities.”

Gartner’s findings include:

• • 38% of employees intend to stay at their current company.
  • 55% believe they can find a new job immediately.
  • Top five attraction drivers for logistics employees surveyed: Compensation, location, work-life balance, vacation, and respect.
  • Top five attrition drivers for logistics employees surveyed: Compensation, manager quality, respect, recognition, and coworker quality.

While key attraction and attrition factors remain universal, LSG emphasizes the importance of role clarity, structured onboarding, and manager development. These elements, paired with career progression plans, can close workplace engagement gaps, particularly among entry-level and junior employees.

“Technology-enabled, strategic recruiting partners empower logistics organizations to retain critical talent while creating clear growth paths for their teams,” Freker explains. “The combination of operational excellence and human connection is essential to building the logistics workforces of tomorrow in an environment where success and retention are fostered.”

Examples of successful retention strategies, per LSG, include:

• • Fast, Structured Onboarding: Training programs designed to integrate employees confidently and effectively.
  • Manager Development Programs that build meaningful relationships with teams.
  • Career Progression Plans to provide employees with clear advancement opportunities.

In one LSG example, a logistics client reduced turnover by 66% after implementing new onboarding and career advancement initiatives.

“Logistics organizations face a trifecta of challenges today with high turnover, tight budgets, and soaring expectations,” concluded Freker. “The resulting talent churn consumes resources and inhibits growth. The ability to align modern technology with strategic workforce engagement will be a key differentiator for logistics companies looking to grow amidst market volatility.”