In the midst of an industry already suffering a skilled labor shortage and struggling to attract talent, the revelation that “59% of air cargo workers have considered leaving the industry,” in a recent research paper put out by IBS Software, is alarming. As is the fact that one in four of those surveyed have considered leaving due to burnout or work-related stress. And 42% are frustrated with outdated technology. CargoForwarder Global (CFG) wanted to know from Radhesh Menon (RM), Head of Cargo & Logistics at IBS Software about why IBS had commissioned the research and what it will now do with the results.
CFG: What motivated IBS to research this topic and what was the instruction?
RM: Anyone working in or with the air cargo industry is aware of the current workforce issues plaguing the sector. Coupled with the unavoidable uncertainty of global policies, it’s safe to say that working in air cargo right now is stressful. It’s difficult to ignore the changing geopolitical climate and the direct impact of this on the air cargo industry, and as this continues to evolve, we felt it was important to understand how the sector could attract, retain and secure skilled staff.
We wanted to understand the factors behind frustrations in the working environment and what learnings we could take from employees’ experiences.
CFG: Were the results as expected? What was surprising? What was hopeful?
RM: Despite knowing of the talent shortage and the people issues affecting the air cargo industry, I was still shocked to see that over half (59%) of our respondents were considering leaving the sector. That said, there were results that we expected, like the fact that outdated technology is a key cause of frustration for the sector, as well as the unpredictable global climate.
What was really positive, was the fact that nearly half (49%) cited passion for aviation and transportation as the reason why they were attracted to the industry, and their job role. You can invest in the right tools, and transform your employee experience to retain skilled staff, but you cannot force interest, so it is great that throughout all frustrations, the air cargo industry is still able to instill the same levels of passion with its employees as has been the case before.
CFG: Where was the survey carried out? How many people participated from which countries?
RM: The survey was open for respondents working in the air cargo sector globally. The majority of people were based in Europe, but we had participants from the EMEA, APAC and America regions contribute to the survey too.
CFG: What air cargo segments participated? GHAs, airlines, etc.?
RM: A variety of air cargo roles participated in this survey, covering a cross section of roles from operational staff to middle management and those working in technical areas. We felt it was important to capture the opinions of staff at all levels, with varied day-to-day experiences.
CFG: What BDPs does IBS have that it can share with the industry when it comes to attracting and retaining its own staff?
RM: When it comes to attracting and retaining our own staff, we place a great deal of emphasis on cultivating a culture of innovation, appreciation and continuous improvement. Another fundamental aspect is for employees to be able to access the best tools and practices aligned to their job and develop a sense of pride by being part of a smart workforce.
Building a fair and supportive working environment for employees at every level and location is crucial to providing a great employee experience, and is why we have consistently been certified as a ‘Great Place to Work’.
CFG: Where do you see the industry in 5 years’ time, based on this information?
RM: There are a couple of distinct possibilities here. In five years’ time, the role of digital enablement of core business processes is going to be fundamental – being ‘digital first’ will be a given, similar to digitally innovative industries like banking.
Automation of repetitive and non-value adding activities would be another key area where the air cargo industry could definitely benefit from the adoption of AI driven practices. While optimizing operations, these AI tools would make work more rewarding and less cumbersome.
Through the adoption of next generation practices like IATA’s ONE Record, there could be a significant upgrade in the industry’s capability to generate and share quality data. Achievement of these practices would, importantly, attract a younger, more digitally savvy workforce, bringing new ideas and with it, driving cultural change, making the industry more innovative and responsive.
While challenges like policy volatility and global disruptions will persist, companies that invest in digital transformation and talent development will lead the charge into a smarter, more resilient future.
The other possibility is that the industry continues to be allergic to the change required to move forward and miss out on a generation of new talent that will help drive this change. Ideally, we learn from the findings of our research, and shift the change resistant mindset in the air cargo industry, for a digitally positive future.
CFG: What will IBS now do with the results of the survey?
RM: These results bring insights for our customers, but also for ourselves. Even as an IT provider, IBS Software must continue to look ahead of the curve and insist on recruiting, nurturing and retaining the talent of tomorrow.
We can see that for our customers, this talent stagnation can have long-term effects on the progression of air cargo, and even the aviation sector as a whole. The results will be used, not as a simple red flag, but as a driver to affect meaningful change across the industry, and understand the wider, human related impacts of increased digitalization.
CFG: Where are concrete examples of how IBS solutions can prevent burnout at work? Or what are its suggestions for improvement here?
RM: Preventing burnout at work requires a balance of many factors like manageable workloads, clear communication, and supportive leadership. HR-related best practice methods, which could include encouraging regular breaks, flexible schedules, and providing mental health support can aid in improving employee well-being.
Burn-out occurs when employees feel underutilized, overworked, and even become disconnected or apathetic about the work they do. In particular, it is important to ensure that employees feel that they are part of transformation initiatives and that their needs are also being addressed as part of these initiatives. It is critical that these are not just ‘top-down’ strategic goals, they must address the real day to day issues that employees face as part of their daily jobs that drive transformation initiatives. Therefore, investing in training, recognizing talent and achievements, and making employees part of the development process can assist employees to stay engaged, motivated, and resilient in fast-paced, high-pressure environments.
Encouraging the passion that drove them to the industry, and the importance of their role within the organization is also key in helping employees feel recognized, and reminding employers of the need for a culture of appreciation.
CFG: What percentage of the industry is still not digital or not up-to-date? What is the average set-up at an average air cargo service provider?
RM: Our findings showed that 42% of air cargo workers cited inadequate IT systems as a key challenge facing their organization. And beyond cost, the strongest barrier to updating technology within the sector was a resistance to change, reported by 53% of our respondents. That said, it’s clear there’s a backlog of digitalization felt by air cargo workers.
If you were to map out the different business areas and the level of digitalization in each of them, there has been some level of improvement in the sales and commercial functions over the past couple of years – particularly over COVID. But as we move progressively forward in the shipment lifecycle through handling operations and to back-office functions, we can see significant opportunities for upgrading the level of digital enablement.
In terms of average length of implementation, it depends on factors including the scope of the implementation and the degree of complexity of the IT landscape that we are embedding our solutions. We work closely with customers to define the most optimal path for the project by considering all these factors and effectively balancing aspects like time to benefit realization (ROI), risk and the degree of change management that it involves. This then drives the timeframe and can range for those that want more instant an implementation to those who need a gradual integration.
CFG: What training support do you suggest when it comes to IT implementation?
RM: As with training for any new technology, the core purpose of the implementation is just as important as knowing how to correctly use it. Learning a new technology is learning a new skill. If your team doesn’t understand why the training is happening, it’s likely that the implementation and integration of the desired upskilling will fail. The training plan is embedded into all of our implementation plans, as well as ongoing engagements post implementation – which includes specific training courses for business users, system administrators and technical staff. We also work with our customers to provide them with additional training aids such as automated computer-based training, embedded tutorials etc. as per their needs. So internal communication, on the need for learning and development of digital solutions, is as crucial in IT implementation as the actual data/solution integration itself.
CFG: Any other message that you would like to share?
RM: The next generation of IT professionals will have many choices when choosing an industry or even a specific company. The job market is just as competitive from the recruitment side, as it is for those being recruited. The question we should all be prepared to ask ourselves is: why would an individual who is used to a digitally native experience in their normal life – from online shopping to social interactions – be happy to take a position in our industry? Do we have the right work practices that they would find exciting and value adding? The answers to these questions should be quite obvious as this survey clearly shows us. If we want to ensure the longevity and evolution of our industry, and attract skilled, smart employees, we must insist on plowing ahead with digitalization in air cargo.
Thank you, Radhesh, for your insightful answers.
