Let's face it - not every industry can be perceived as exciting. Compared to finance, health care and law, for example, working in logistics isn't very alluring. Add that to the fact that similar providers are also competing for the best workers, and you've got a real problem when it comes to talent attraction and retention. Nobody knows this better than Damien Tan, Managing Director, TNT.
"There is definitely a perception that logistics come on the back end of things," he says. "The logistics industry is not quite seen as a leading edge or lucrative career for up and coming talents." Ironically, the need for solid talent in this industry is particularly crucial to the wider economy. Every company, regardless of industry, depends on the successful and efficient transfer of goods and documents in order to function. TNT's HR faces a major paradox because its customers are industry leaders who require service sophistication, but finding top staff is always an uphill battle.
Another hiring roadblock for TNT is that potential employees aren't always familiar with its brand. Competitors like FedEx, DHL and UPS are typically the first names that come to mind when people search for logistics services. Potential recruits who do have the talents and the interest in contributing to the logistics industry are often drawn first to organisations which boast more mainstream visibility.
Needless to say, embarking on a transformation plan became a top HR priority for TNT recently. Its ongoing strategy now involves turning staffing into a full integration model which targets three specific industries: healthcare, electronics and equipment and machinery.
Through HR's concentrated efforts in these areas, the wider industry is drawing in new talent, Tan says. Skilled staff from other sectors have moved to logistics to fill the gap in skills sets on the promise that their contributions will be valued and rewarded. "They are attracted to the demand for them," says Tan.
It is through this initiative that the bar has been set higher for service standards and expectations at TNT. Tan can attest to the fact that professionalism is also improving. "Customers are demanding it and competition is heating up for future leadership positions," he says proudly.
Rolling along
TNT works hard to identify problems - and solutions - early, but some changes are beyond the company's control. The nature of the logistics industry is that services must adjust to fit the legal and regulatory requirements of different countries. The need to be able to declare and clear customs quickly becomes a top priority when customers are waiting on the other side.
Tan says it is therefore crucial to keep staff informed of updates in regulations. Any changes in trade agreements or road or air regulations across the world will affect TNT's level of service. It's just one of the things that Tan and his HR team do in the background to ensure customers receive a consistent and positive level of service. As he puts it: "We make sure it's served up nice but nobody knows what's going in the kitchen."
Under his direction, communication is used as a driving force for organisational change "Goals can be achieved this way. It has also built up a lot of trust," he says. He explains that TNT has recently changed its business approach from being very budget-minded to a new focus on its identity as an organisation. "We have a much more focused and documented vision of what we want to be, rather than just the budget."
What he wants of TNT is for it to be as transparent as possible in order to tweak processes that were once set in stone. It has certainly paid off. Higher levels of engagement and trust are noted in this organisation, where, as Tan simply puts it, "everyone understands what they're doing."
A high level of flexibility is also required of HR because this will influence staff to be adaptable to changes in products. TNT's focus on emerging markets like China and India also calls for workers to be able to move with the changes. The TNT culture - which appreciates the constant evolution of the business - works to cultivate this adaptability in the staff.
It isn't always easy. Constant movements in markets and products can be highly stressful on individuals but HR tries to emphasise the needs of its staff as it does their customers. "There's a culture not just of service externally but internal respect as well," Tan says. Providing staff with a sense of autonomy reaps an added benefit to the company, according to Tan. "This friendliness and respect naturally shows when staff deal with customers as well."
Policies are not always set in stone here; staff feedback allows them to have some influence on policies to be amended or introduced. An example of this system was seen in Tan's renewal of long-term sickness benefits. Although a long-term illness plan had always been available to staff, HR was reticent about it as the company was still small. Since it has become a much more formalised organisation, the need to remain competitive in labour markets began to stand out. "As we grew, we decided to review policies and benchmark it against what the industry was providing. HR actually brought it up, and rolling out this long-term illness policy made healthcare a priority," says Tan.
What talent isn't
The actual definition of talent is also subject to change. Despite TNT's newfound success in attracting high caliber staff, Tan says a continuing recruitment problem in finding the "right" kind of person remains.
In the past a good manager was one who managed the status quo and optimised workloads and processes. But Tan says standards are changing and the optimum view of talent has also moved forward. It is simply no longer enough to be a manager who just gets things done. Rather, Tan looks for managers who can act as change agents and understand the core competencies and future visions of the staff they work with. Tan describes the ideal manager as one "who can handle ambiguity and challenge the norm".
While it is one thing to describe the traits of an ideal manager, actually seeing such recruits walk in the door is not always easy. When TNT does find somebody who matches the required skills set, there's still no guarantee of the worker being a good fit for the TNT culture and industry. "I wouldn't dare say we're spot on all the time," says Tan.
The two major requirements for managers are that, at the same time, they are good at both maintaining standards and initiating change. Tan usually sees managers with strengths in one aspect or the other, but cultivating a combination of both remains a challenge. An HR solution is to emphasise recognition of both areas in training and coaching. As part of managers' development, they are therefore encouraged to initiate country projects which are cross-functional as well as function specific. These projects give staff an appreciation of the business as a whole.
Tan finds his role rewarding because he gets to witness these transformations. He says these not just taking place in the industry and the company. TNT's HR has also changed over the years, moving from being a facilitator in filling jobs to strategically meeting business needs.
"What thrills me is to see new talent - which I loosely define because everyone is strong in different things - being harnessed and developed through teamwork and being complemented by the strengths of others," he says.