The Biggest Pain Points for Freight Forwarding SMEs Recruiting Talent… & Some Solutions

In the ever-evolving world of logistics, freight forwarding small and medium-sized enterprises (SMEs) play a vital role in moving goods globally.

However, in recent years, these SMEs have faced increasing challenges, particularly when it comes to recruiting professional-level talent. Filling skills gaps has become a common pain point for many in the industry, hindering their ability to remain competitive and grow in an increasingly complex and digital landscape.

Here are some of the biggest recruiting challenges facing freight forwarding SMEs in the USA market;

1. Limited Access to Skilled Talent

The freight forwarding industry is highly specialized, requiring employees with specific knowledge in areas such as customs regulations, international trade compliance, logistics management, and more. Unfortunately, finding candidates with the necessary expertise is becoming increasingly difficult.

Unlike larger logistics companies with robust training programs, SMEs often have fewer resources to develop talent in-house. As a result, they must compete for a small pool of already-qualified professionals, which can drive up costs or lead to longer recruitment times.

2. The Challenge of Attracting Top Talent

Freight forwarding SMEs often struggle to compete with larger companies when it comes to compensation, benefits, and career growth opportunities. While large firms can offer enticing packages and clear paths for professional advancement, SMEs may not have the budget or the infrastructure to match these offerings.

For many top-tier professionals, brand recognition and stability are major factors in their career decisions. Freight forwarding SMEs, which tend to have smaller footprints, face an uphill battle in promoting their value propositions and distinguishing themselves as desirable employers.

3. Evolving Skills Requirements in a Digital Era

As digital transformation accelerates across industries, freight forwarding is no exception. Technology like automated freight booking systems, cloud-based supply chain management tools, and data analytics platforms are becoming essential. This shift has led to an increasing demand for professionals with tech-savvy skills.

However, freight forwarding SMEs often find it difficult to recruit candidates with a blend of both traditional logistics expertise and modern digital competencies. Finding a professional who understands not only the intricacies of freight forwarding but also emerging technology trends can be like finding a needle in a haystack.

4. Higher Turnover and Job-Hopping Trends

Another major pain point is high turnover rates. businesses often invest significant time and resources in recruiting, onboarding, and training employees, only to lose them to competitors or larger firms. The broader logistics and supply chain industry is facing a trend of job-hopping, especially as younger professionals seek out faster career advancement.

For SMEs, the loss of a highly skilled team member can leave them in a vulnerable position, slowing down operations and customer service capabilities while they scramble to fill the vacancy.

5. Limited Recruiting Resources and Expertise

Larger companies have the benefit of entire HR departments dedicated to talent acquisition, equipped with sophisticated recruiting tools and wide-reaching networks. Freight forwarding SMEs, however, typically have smaller teams, often with a single HR manager or business owner wearing multiple hats. This can limit the reach and effectiveness of their recruitment efforts.

Additionally, SMEs may lack access to the latest recruitment technologies, such as Applicant Tracking Systems (ATS) or AI-powered candidate sourcing tools, which can put them at a disadvantage compared to larger competitors.

6. Geographical and Industry Constraints

Freight forwarding is a global business, but it is also location-sensitive. Depending on where a small business is based, they may have limited access to professional talent pools. For example, businesses located in less urban or more remote areas might struggle to attract qualified professionals willing to relocate.

Furthermore, the freight forwarding industry can be perceived as niche or less glamorous compared to other sectors, making it harder to attract talent from outside the logistics world. This narrow focus means that SMEs are often limited to recruiting from a small pool of industry insiders, which further narrows their options.

7. Lack of Industry-Specific Training Programs

While the logistics industry has some general training and certification programs, there is often a lack of highly specialized programs that cater to the specific needs of freight forwarding SMEs. This lack of focused training makes it harder for SMEs to find talent that is not only qualified but also well-versed in the unique challenges of their particular business.

To combat this, many SMEs are forced to hire less experienced candidates and invest heavily in on-the-job training. However, this can be a risky strategy, particularly if the SME cannot afford the time or resources to develop new hires fully.

Solutions for Freight Forwarding SMEs

Despite these challenges, there are some ways that freight forwarding SMEs can improve their recruitment efforts;

• Leverage Niche Job Boards & Recruitment Partners: Industry-specific job boards, like those dedicated to logistics or freight forwarding are useful, as is utilizing industry networks via specialist recruitment partners to help target more relevant niche talent pools.
• Develop Partnerships with Educational Institutions: By partnering with universities, trade schools, and certification programs, SMEs can create a pipeline for young talent with the skills needed to succeed in freight forwarding.
• Offer Competitive Benefits: While SMEs may not be able to match larger companies in terms of salary, offering flexible work environments, clear career progression, and other non-monetary benefits can help attract and retain top talent.
• Invest in Digital Training: Since digital skills are becoming increasingly important, SMEs can differentiate themselves by offering ongoing training in areas like data analytics, automation tools, and digital freight management platforms.

Recruiting professional-level talent is one of the biggest hurdles for freight forwarding SMEs in the USA market. With limited access to skilled professionals, competition from larger firms, and evolving industry needs, SMEs face a variety of challenges. However, by being strategic in their approach and investing in both technology and talent development, freight forwarding they can begin to close the skills gap and build strong teams for the future.

For small businesses looking to stay competitive, addressing these challenges head-on is essential for long-term growth and success in an increasingly complex global logistics market.

If you are struggling to recruit freight forwarding talent for your SME, Cast USA can help!

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