Why a deskless industry like logistics is falling behind on HR tech

The future role of HR in logistics requires a cultural shift towards adaptation and transformation, becoming increasingly strategic with real-time workforce data available at the touch of a button, writes Damien Durston.

The logistics sector, a crucial pillar of the Australian economy, is often viewed as a traditional and labour-intensive industry. However, it is currently undergoing a significant digital transformation, accelerated by the pandemic. Recent advancements in automation, artificial intelligence (AI) and sustainable practices have significantly reshaped the logistics industry, paving the way for a more efficient and technologically advanced future.

While logistics companies were once hesitant to adopt new technologies, they are now at the forefront of digital innovation. This shift enables logistics firms to enhance efficiency, streamline operations and reduce costs. The benefits include increased throughput, simplified processes, lower expenses, improved delivery accuracy and reduced supply chain complexities.

Deskless industry falling behind with HR technology

Human resources (HR) plays a pivotal role in the logistics industry, which is known for its labour-intensive nature. HR drives operational success by facilitating the recruitment and training of the right staff, managing supply chain complexities, ensuring job security, and fostering effective team dynamics.

Despite the potential of modern HR technology to revolutionise the logistics sector, a significant portion of the industry has yet to fully embrace HR automation. This reluctance means they are missing out on the substantial benefits that HR technologies can offer, including improved efficiency, accurate remuneration, compliance, and an enhanced employee experience.

According to a report from the Boston Consulting Group, “Companies that are implementing digital technologies in HR are far outpacing their peers and competitors in efficiency, productivity and retention.”

In Skedulo’s State of Deskless Work report, it was revealed that while 80 per cent of the global workforce is deskless, only 1 per cent of venture capital is allocated to HR technology for these workers. This significant gap in HR technology adoption can negatively impact workforce engagement, a critical issue that must be addressed as it negatively affects the employee experience in the logistics sector.

Some logistics companies still rely on paper-based methods to record hours worked on timesheets for payroll purposes and annual leave requests. An administrative person often manually enters this information into spreadsheets, which is prone to human error. The slow process makes it difficult for leaders to make accurate resourcing decisions promptly. It is also frustrating for frontline logistics workers who should focus on their work rather than trying to fix errors caused by outdated manual HR processes.

There have been reports of time theft in the logistics sector, with employees inflating their hours or getting colleagues to clock on and off when they are not there. There are also regular cases of wage theft by employers due to inaccurate data entry, compliance with complex rewards and the different time zones and public holidays across each state and territory in Australia.

Engaging deskless logistics workers with HR technology

The Deskless Report 2021 by Nudge indicated that 55 per cent of workers believe proper engagement and communication by their manager help create a sense of purpose in the workplace. Leaders managing a deskless and often remote workforce in logistics need to foster a culture of collaboration and community.

Automating HR processes

Addressing the challenges is not impossible for the logistics sector; it simply requires HR software tailored to the specific business needs of a deskless industry with a large, remote, contractor-heavy workforce.

Being able to digitise and automate HR tasks for the logistics industry with tailored technology solutions with configurable employee self-service and built-in analytics is invaluable for this sector. Having accurate employee records by empowering staff to maintain their personal data ensures compliance and saves significant administrative resources.

Allowing employees to clock in and out via phone or tablet, check their shift schedules, request annual leave, or check their remaining holiday balance can streamline HR processes. Implementing a cloud-based system for these tasks will substantially improve efficiency, accuracy, and productivity, particularly for an industry like logistics, where workers get goods shipped to customers outside of regular office hours and often in remote areas.

In the logistics sector, robust terminals that can withstand harsh conditions in a warehouse or distribution centre are essential for workers to clock in and out. Security and governance are also critical, given the value of workforce data to competitors and cyber criminals. An auto-rostering system with robust security measures is essential to prevent potential data breaches.

Conclusion

To succeed in this evolving sector, HR leaders must be agile, forward-thinking, and ready to embrace HR technologies to help them lead their organisations successfully in a highly competitive environment.

Logistics companies increasingly need HR professionals in roles that address changing employee expectations, an aging workforce and skill shortages. The future role of HR in logistics requires a cultural shift towards adaptation and transformation, becoming increasingly strategic with real-time workforce data available at the touch of a button.

The industry is at a pivotal point, and HR professionals in the logistics sector must recognise their evolving responsibilities. By embracing these challenges, HR can drive the logistics industry towards sustainable, efficient, and responsible growth in the decades to come. The future of HR in logistics is exciting, and HR holds the key to the industry’s future success.

Damien Durston is the ANZ head of sales and people management at OneAdvanced.