Agitation factors make the hiring situation worse
It’s more than just a talent shortage
While it is true that Brexit, Covid, and other external problems have worsened the HGV driver shortage by reducing the pool of experienced drivers, these events are not solely responsible for the low take-up of driver training by younger candidates. Other factors, partly driven by the sector itself, have combined to make road haulage a less attractive vocation for younger people.
In the post-pandemic era, the relationship of employee to employer has continued to evolve. Even though the overall demand for talent has slightly softened in recent months, more than 1,000,000 job vacancies remain open at any time, +500,000 workers are sitting on the sidelines, and the UK is still embroiled in the worst labour shortage in 17 years. In hard-hit industries such as road haulage, the power to pick and choose jobs that was already with the employee has become even more pronounced – drivers firmly hold the keys.
In many industries there are more jobs open than available workers to do them. For example:
IT and Tech: 2.2 jobs per worker
Banking and Finance: 8.5 jobs per worker
Source: Manpower June 2023
Workers are demanding, and getting, higher compensation packages as the UK’s talent shortage continues.
Industries with tight profit margins risk being left behind as workers chase the money.
Source: Financial Times
Younger workers, especially Gen Z, are demanding better working conditions, including:
Hybrid working
Strong career path
Health benefits
Positive DEIB
Strong EVP
An ability to thrive at work
Source: Manpower
The road haulage sector has been slow to respond to these macro-changes in the world of work. Entrenched practices are limiting the potential pool of new drivers entering the industry. This can only hasten the sector’s charge towards the tipping point.
Employers only want to hire experienced drivers as they are faster to full effectiveness and offer lower insurance risk.
Some road haulage businesses can’t or won’t pay the salaries that candidates ask for.
Businesses are failing to meet the working conditions and employer propositions that candidates say are important to them (see above).
These and other business-led issues are not only exacerbating the driver shortage by discouraging potential job applicants, they are also increasing the time it takes to hire new drivers and the lag until they become fully effective in their new role. However, as if this situation wasn’t problematic enough, agitation factors on the employee side of the equation are also adding to the turmoil.
*Logistics UK survey – Feb 2023
Source: Logistics UK Feb 2023
As the UK remains locked in one of the lowest unemployment periods since the post-WW2 era, the balance of open jobs to available workers remains firmly in the employees favour: More than one million jobs remain persistently unfilled, as many of today’s workers can afford to be selective about the employment they choose. The effect of this ‘abundance of jobs’ is that industries and vocations that present an unattractive employment proposition – real or perceived - will struggle to secure workers.
Unfortunately for road haulage businesses, a career as an HGV driver currently falls into the unattractive column for a variety of reasons (and especially with younger people).
Perception that work as an HGV driver involves unattractive shift patterns and long periods away from home (which runs counter to the option of hybrid working offered by many other industries).
High cost of getting an HGV license – typically more than £3,000 to obtain a Cat B to Cat C+E HGV Class 1 licence, which is beyond the financial scope of many younger people.
Insufficient compensation. Employers are reluctant to pay expected salaries or cannot compete with the compensation rates offered by other industries.
Some hauliers are failing to deliver on the work values held as important by this talent pool, (see sidebar).
According to Logistics UK, there were only 2,200 female HGV drivers in the UK in 2023. This is less than 1% of the total HGV driver pool, and a tiny fraction of the +500,000 females who work in the UK’s Transport and Storage sector.
Why are women so underrepresented in the road haulage industry?
The industry is perceived as a male-dominated field, which can discourage women from pursuing a career in HGV driving, as they may feel they will not be accepted or respected in the workplace. This perception is then coupled with the reality of the long hours and demanding nature of the job, making the profession unsuitable for many women. This is despite the fact that females who do pursue a career in driving typically achieve a better HGV test pass rate than their male contemporaries.
From an ageing workforce, to an unattractive employer proposition and too few women joining the industry, there are many reasons why the UK’s road haulage industry is struggling to recruit and retain new HGV drivers. Some of these issues can be offset by improving driver compensation and working conditions, reshaping shift patterns, and making the industry more diverse and welcoming to women. However, most of these actions will take time, and time is one thing the sector does not have. The UK’s economy is on track for renewed growth in 2024, which will likely see increased demand for road haulage services and increase the pressure on logistics organisations. To avoid the tipping point where demand exceeds the ability to supply, the industry needs access to a large and continuous pool of qualified and job-ready HGV drivers now.
