In order to download this flyer, we kindly ask you to provide us some information about yourself. After submitting this form you have access to other publications.


HR solutions for reducing industry-specific fluctuation rates

Logistics is more susceptible than other industries to specialists and managers switching companies, often after a relatively short time with one employer.


Employees use this as a way to boost their target income. Their new employer may also pay them a welcome bonus to compensate for any bonuses or long-term incentives (LTIs) they miss out on by leaving their previous employer. Of course, the companies are the losers here, with rising salaries and diminishing fairness with regard to compensation. At first sight, their actions appear justified: The customer relationships brought to the firm by the migrating employee more than compensate for the extra costs. However, the total number of customers does not grow as a result of such migrations and the ultimate result for the industry is simply higher personnel costs.


What can companies do to prevent fluctuation? Alongside benchmarks on actual compensation including benefits and a clearly defined and implemented compensation philosophy, the key to countering fluctuation is to create a talent pipeline and foster talented individuals within the firm itself.


While LTIs can be dealt with by offering bonuses to people who change company, targeted staff promotion is more difficult to compete with. Companies can significantly reduce their fluctuation rates – and hence their need for expensive external hires – by creating a management climate that is attractive for high performers and a corporate climate that stimulates performance.


hkp/// group advises on effective compensation systems and levels. We also help develop and implement talent management systems that work.

  • Share this article: