International Logistics Salary Report – April 2007 - Executive Summary

Participants identify career opportunity as key reason behind career choice. In the war for talent, companies within the logistics industry must invest more in a strong HR strategy to improve the “employerbility” as “employer of choice”.

The International Logistics Salary Survey conducted by Europhia Consulting has received participation of 1,412 participants from over 35 countries all around the world. There is a wide age distribution of the respondents, with 78% of the participants being between 25 and 44 years old. This article shares the key findings of the survey. The survey will be repeated again towards the end of 2007.

In general, the participants of the survey have a positive outlook on the prospects of the industry and the company they work in. 70% believe the industry will see positive developments, and 60% feel likewise for their companies. Only a small minority foresee negative prospects for their industry or company.

While around 60% of the participants are satisfied with their position and employer, only 38% are satisfied with their salary.

From the survey, the Asian participants seem to be the group who are least satisfied with their job, employer and salary level. For companies operating in Asia, this remains the biggest challenge in retaining talent.

Salary Comparisons per Region

Professionals working in a supply chain position for a manufacturer appear to earn slightly more than similar colleagues working for a logistics service provider. In Asia the difference is the largest with 16%, while in Europe the difference is 6% and in North America, it is 3%.

Salary levels in Europe and North America appear to be almost double than those of colleagues earning a local salary package in Asia. However, the salary differences appear to be largest in lower paying positions. In comparing Director level salary packages the regional differences are even smaller.

Career Motivation

The labour market for resource within the sector is heating up further in a strong growing international economy. This will result in an increase in competition for talent from within and outside the logistics sector. Therefore, companies should be aware of these trends and accept these as the “operating environment” of the years to come. The results from the salary survey make clear that besides offering market competitive salary packages there are other factors such as offering employees clear career opportunities, which are important for an employer to consider as part of its HR strategy. These factors are key to attracting and retaining talented human capital.

There are clear regional differences when it comes to the key reasons for making a career choice. European respondents view “Corporate Culture” as the third most important factor in making a career move. Asian respondents look for “Management Recognition”. American respondents are concerned with the “Reputation of the Company” in the choice of working for a certain company.

HR Perspectives

HR professionals were asked to comment on key tools in attracting new staff. Their reply suggests a focus mainly on monetary compensation (basic salary and bonus and allowance packages) as the effective tool to attract talent. 65% of the respondents actively benchmark their compensation levels against industry averages. However, it seems that this focus does not translate to salary packages being aimed at above industry averages, since the majority of the HR professionals maintain their compensation levels at an industry average level.

Only close to half of the HR professionals surveyed consider the provision of a structured career plan as an effective tool. In the previous section, it was revealed that professionals consider career opportunities as the most important factor in their career motivations. Therefore, there seems to be a gap between the tools that HR are using to attract talent versus what matters most to prospective employees.

Training and Development

As part of the career development of employees, half of the survey participants would like to develop their leadership skills. On industry-related trainings, they would like to receive training in Supply Chain Fundamentals, Technological Developments in Logistics and Service/Reverse Logistics. Companies can do more to identify what type of training professionals require to assist/enable professionals to make career steps within the company.

Summary

In the nineties, the buzzword was the “employability” of individuals to better equip themselves with relevant skills and experience for the labour market. Today, it is about “employerbility” to describe what companies must do to be recognised as an “employer of choice”. Therefore, Europhia Consulting advises clients to invest in a robust HR strategy to promote the employer’s marketability in the industry.

Companies still put too much focus on monetary compensation to attract talent. Although it remains an important factor, it is no longer sufficient to only offer an attractive salary package. Professionals make their career choice increasingly based on career opportunities, company culture, management recognition, and company reputation.

Current developments indicate that in today’s labour market it is the “employer” who must invest the time and effort to develop a strong HR strategy to promote the employer’s marketability. This forms the key to attract and retain talent.

click here to download PDF files

visit  www.europhia.com/page/40/ to see more details