Gen Z workers are increasingly exploring skilled trades as a career option, recognizing that these positions offer a secure future with strong earning potential. This interest couldn’t happen at a more critical time for the supply chain industry. While the C-Suite is hyper-focused on maximizing productivity, there’s a real struggle to hire enough skilled talent to meet their goals. A recent survey found that 76% of supply chain leaders in North America and Europe are experiencing notable workforce shortages. This new pool of talent is a welcome addition, but will require more contemporary recruiting and retention strategies than in the past.

Competing for Skilled Trade Talent

While the pursuit of skilled trades is on the rise, supply chain positions are competing with other roles, including electricians, plumbers, carpenters and welders. One of the most effective ways to reach young people still contemplating which trade path to take is modernizing the recruiting process. Gone are the days of simple job postings and advertisements. Instead, new approaches need to be introduced, such as social media outreach, recruitment videos and optimization for mobile devices. 

Gen Z also prioritizes work-life balance, mental health, and purpose-driven employment. It’s important to acknowledge and respect these preferences, and recognize that a one-size-fits-all workplace is not effective with a multigenerational workforce. A shift in corporate culture may be required to attract this demographic. Start with incremental changes that include open and transparent communication, feedback from all stakeholders, and data-informed decision making. 

Getting to the Heart of What Gen Z Wants

Ultimately, recruiting workers to a skilled trade position represents just the tip of the iceberg. Retaining and advancing workers is critical for not only filling immediate talent needs, but keeping valued employees for years to come. This applies to both full-time employees (FTEs) and those hired on a contract basis. 

Define Career Paths

Once on the job, employees may quickly start to feel unfulfilled if there’s no clear path for them to advance in the organization. One study found that 74% of Millennial and Gen Z employees were likely to quit due to a lack of opportunities to develop new skills. 

The supply chain industry is in a unique position to respond, because it’s a growing sector with numerous opportunities for advancement and specialization. 

Create a talent mapping process. This includes looking at realistic routes for moving up in the organization. For instance, what is the next rung on the ladder for a warehouse worker or purchasing manager? Is it possible to learn on the job, or does the next step require formal training? What experiences are contract workers bringing from other assignments that can be leveraged?

Develop networking and visibility opportunities. This can include mentorships, job shadowing and recognition programs. Contract employees often struggle to fit in and feel valued. Offering them the same acknowledgment as FTEs will make them more likely to not only stay on the job, but re-engage when needed.

Train managers. Often managers are hesitant to lose a good employee to another department, so they hoard talent. But chances are high that the employee will leave anyway if they don’t feel there’s growth potential. Instead, managers should identify and elevate employees with the potential for advancement. Keeping them engaged is essential for long-term workforce management. 

Elevate internal recruiting. This can include offering resources that help employees learn about new opportunities, creating a rotation system that allows employees to try different roles, and promoting a culture that supports career advancement. 

Prioritize Skills Training

Too many employers believe that workers who skip college or trade programs don’t prioritize education. This misperception can lead managers to think these entry-level workers don’t want training or upskilling. Further, it may prevent employees from seeking out growth opportunities for fear of rejection. But Gen Z is eager for training, and would prefer to accelerate the process. However, there are often roadblocks. 

DEWALT recently surveyed high schoolers interested in skilled trade programs, and found that 52% were placed on a waitlist, while 43% had concerns about the cost of trade school. This presents an opportunity for organizations willing to invest in on-the-job learning opportunities, including internships and apprenticeships. 

Companies have several options for training, and because this cohort is typically good with technology the choices are increasing, both for FTEs and contract employees.

Offer onsite training. Around two-thirds of high schoolers reported they would have benefited from more career exploration in middle or high school. This opens up an opportunity for the local business community to step in with apprenticeship and training opportunities. And offering training in the specific skills needed locally will build a pipeline of workers committed to the community.

Provide continuous learning. Helping employees obtain higher education and certifications will likely require picking up some of the financial tab, and allowing workers to take the time required to attend class, complete coursework and sit for exams. But the investment is often worth not having to continuously hire new talent.

Use virtual reality training. One example is forklift simulation that allows companies to screen and train employees on turning and positioning, loading and unloading, moving products, and conducting inspections — all with the goal of earning a certification required by OSHA.

Work with robotics companies. Robots and co-bots can work alongside 3PL employees to help them pick more orders faster, and boost the productivity desired by senior leadership. By providing training on these automation tools, companies can appeal to employees who prefer not to work in a warehouse still using manual processes. 

To attract and retain Gen Z workers, supply chain organizations will need to shift their mindset to focus on what messages resonate with this demographic, and which communication tools will break through the noise. Additionally, those that are adaptable and willing to support new talent with solid growth plans and access to new skills will be the ones that thrive now and in the future.

Greg Wohlfort is senior vice president of strategy at Abacus.