Distributors have been on the front line in the fight against pandemic supply chain delays. Multiple factors have driven these delays, and they’re likely to continue in many areas.
From IHS MarkIt
In fact, the most recent Grant Thornton CFO survey showed that CFO outlooks on the coming year have become more pessimistic, and supply chains are at the top of their concerns. Distribution leaders find themselves at the vortex of the supply chain storm, while they also wrestle with workforce shortages.
“Transportation companies can’t find enough drivers, warehouse workers and other employees to keep materials moving,” said Angela Nalwa, Grant Thornton Managing Director and HR Transformation Leader.
What can distributors do to accelerate out of the storm?
There are three areas that distributors can address, with some key actions they can take: Recruitment, retention and communication.
Nalwa said that pay is just one of the factors that distributors should consider. “Wages are of course an important factor, but data reflects that wages are not the only driver of turnover. Career development, training and opportunities are also significant drivers.”
It’s the very nature of distribution that some of your employees will work with — and talk with — other people, in other teams or organizations. That’s part of why it’s important for you to offer competitive incentives that will keep your best employees happy. Good employees want to keep good jobs. So, you have stability on your side. Now, think about how you can be proactive about hiring and keeping the best employees.
When distributors take a competitive approach to building the best recruitment, retention and communication, they can build a workforce to win.
Michael T. Capone
Michael Capone is an Audit Services partner and leader of Grant Thornton’s Distribution practice. Earlier, Capone served as the Midwest Region Consumer and Industrial Products industry leader.
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