pany brands are generally not well known to the general
public.
Third, many managers leave large 3PLs for what are seen
as better opportunities in other industries, leading to a high
management attrition rate.
Fourth, and potentially most important, the 3PL industry
has been slow to adapt to the changing and evolving needs
and expectations of a younger work force.
Among the other interesting observations made by the
CEOs were that other industries pay more for top intellectual talent than 3PLs, and that there is constant pressure on
3PL employees to demonstrate value and deliver high-qual-ity services to clients at competitive prices. That pressure
can create a very stressful environment and a heavy workload for 3PL managers. Compounding this situation is the
fact that a significant number of the industry’s clients are
very difficult to work with.
The CEOs also noted that many 3PL managers come up
through the ranks, and as a result may not have the skills
required for managing effectively at higher corporate levels.
They also expressed concerns that, in some instances, large
3PLs have inadequate human resource management support, and that recession-related layoffs have not only undermined the industry’s ability to build its management
strength, but have also led many talented managers to leave
the industry altogether.
3PLs RANK THEMSELVES AS EMPLOYERS
The 2013 surveys asked the CEOs to rank the 3PL industry
in terms of its treatment of young managers with respect to
salary, benefits, career opportunities, travel, and workload.
The results, summarized in Exhibit 1, may provide some
insight into why finding and keeping talented managers
continues to be a significant problem in the industry. A five-point rating scale was used, and on each dimension, the
respondents were given the options of “excellent,” “very
good,” “good,” “fair,” and “poor.” It should be noted that not
every respondent ranked the industry on every dimension.
On the five-point scale, the respondents’ average ranking
of industry salaries was 2.84. Only two CEOs ranked the
industry above “good” in terms of salary, and five ranked it
“fair” or “poor.” The average ranking of benefits was only
slightly higher at 2.95. Only one respondent ranked it above
“good,” with five ranking the industry’s benefits as “fair” or
“poor.” This suggests that when it comes to the salaries and
benefits it offers, the 3PL industry needs to determine how
it compares with its competitors in manufacturing, retailing, transportation, and consulting. That’s important not
only at the entry level, but also as individuals move up
through management ranks.
With respect to career opportunities, the average ranking
was 2. 53, with nearly half of the respondents describing the
industry as “fair” or “poor” on that dimension. That is a
