The study was conducted in response to the increasing shortages of (especially young) workers in the logistics sector. When employers and landlords take into account the needs of staff, employee retention rates rise and it becomes easier to attract talent. Savills conducted extensive research among nearly 300 employees in the Dutch logistics sector in October 2020 and came up with the following practical tips:

For employers (tenants/occupiers)

1)     Although it may seem obvious, listen to your staff. Workers who have a voice are much more likely to be satisfied than those who have no or only a limited say

2)     Offer a shuttle service for employees to get to work

3)     Ensure that areas such as sports facilities are high quality and provide good and varied lunch options

For landlords (investors and developers)

1)     When developing and acquiring logistics real estate assets, choose locations that are easily accessible for employees

2)     Invest in noise-reducing measures above the minimum legal standards

3)     Make additional investments into climate-control measures in warehouses

Over the last few years, logistics and transport companies have found it much more difficult to recruit qualified personnel. The shortages experienced by businesses in the logistics sector have been on the rise. This is especially true for certain jobs such as order pickers, forklift truck drivers, truck drivers and planners. Since 2015, the share of businesses within this sector that have indicated that their operations are hampered by a shortage of suitable workers is on the rise, from 5% in 15Q1 to 33% in 19Q4.

The simplest solution to reducing personnel shortages in the sector, raising salaries, is often not possible. Despite the increasing turnover in the logistics sector in the period prior to COVID, the margins in the sector are still decreasing because costs, and wage costs in particular, are rising faster than turnovers. Logistics and transport companies therefore have no choice but to be creative in the recruitment of suitable employees.

The survey also shows that older employees are generally more satisfied with their workplace than younger employees and tend to be less focused on overall workplace aspects.

Niek Poppelaars, Co-Head Logistics & Industrial at Savills in the Netherlands, explains: “The improvement of accessibility could significantly help attract young people, but this is definitely not the most important factor. Aspects considered most important by young people and that they tend to be the least satisfied with are local amenities (‘additional facilities’). In simple terms, free snacks or meals and access to sports facilities may make it more appealing for young people to work for a logistics company. Taking into account the sector’s aging workforce, attracting young people is of great importance to future-proof logistics companies.”

Douglas van Oers, Co-Head Logistics & Industrial at Savills in the Netherlands, adds: “The practical tips we give naturally require investment. However, more satisfied employees means more satisfied tenants, meaning the marketability of a warehouse will remain high and chances of vacancy will decline as a result. This can of course be considered a positive development for the return on investment in logistics real estate.”

“Finally, there are also ways to keep workers satisfied with very limited investment,” says Thijs de Vries, Research Consultant at Savills in the Netherlands. “Employees who are involved in the design of the workplace are clearly more satisfied about where they work. So simply involving your employees in the design phase can lead to more satisfied employees. Real estate is not a magic cure but it could help to retain and attract workforce.”

Read the full report here.