Though it's hard to wean business owners away from the idea that in the end, it's all about the money, presenting an irresistible offer is much more than just baiting the hook with an enticing salary.
Don Jacobson is the president of Optimum Supply Chain Recruiters, a recruiting organization that specializes in the placement of management personnel in the logistics field on a nationwide basis. You can reach him by calling Optimum SCR at (800) 300-7609 or by visiting the firm's Web site, www.OptimumSCR.com.
Shelley Safian is vice president of marketing for Optimum Supply Chain Recruiters, a recruiting organization that specializes in the placement of management personnel in the logistics field on a nationwide basis. You can reach her by calling Optimum SCR at (800) 300-7609 or by visiting the firm's Web site, www.OptimumSCR.com.
To say finding the ideal person to hire is a complex undertaking is to seriously understate the case. You interview—often repeatedly. You run back ground checks. You assess the prospect's fit with the company. Once you find the right candidate, you certainly don't want to lose him or her by bungling the negotiation.
Though it's hard to wean business owners away from the idea that in the end, it's all about the money, presenting an irresistible offer is much more than just baiting the hook with an enticing salary. There are many components to the job offer. And because the importance of each element varies from candidate to candidate, you'll need to be prepared to address each one. (Even if you're using a professional recruiter to present your offer and facilitate the negotiation, you'll still need to provide the recruiter with guidance.) Here are the main points to consider:
1. Salary. As we've noted, this may or may not be a candidate's primary interest. Salary will likely rank high with twenty-something candidates; more mature candidates may have other priorities (see below). In any event, know before you go into the negotiations exactly how much money you can offer. Determine the going rate in the industry and in your geographical area for the position. If you lowball the salary offer, you risk losing your prospect right off. Protecting your balance sheet is admirable, but underpaying good people is a risky way to do that.
2. Paid days off. Be prepared to field questions about this. Your employee manual should spell out your company's policy clearly … five sick days, three personal days, whatever. Many companies are going to a system of offering generic paid days off (GPDO), rather than specifying how many are sick days and how many are vacation days. They've found that workers are less likely to call in an absence at the last minute in order to use up their sick days,creating a staffing crunch for managers. Using the GPDO system also demonstrates that the company understands that staff members occasionally need a day to, say, take an elderly parent to the doctor or simply preserve their mental health by heading to the beach.
3. Health insurance. Be prepared to answer basic questions regarding your company's health insurance benefits. Are there restrictions on the providers the employee can use? Does the company pay the entire premium or only part of it? Are dependents paid for or does the employee have to pay their premiums? It's important to answer these questions thoroughly and accuratel —not brush them off with an assurance that the HR department will answer all those questions on their first day. If you don't have answers, candidates might think you're dodging their questions because you're afraid they won't like what they hear.
4. Job responsibilities. Providing an itemized list of job tasks and responsibilities is very important to a candidate who's in this for the satisfaction of a job well done (which is definitely a character trait you want to see in an employee!). But don't stop there: Offer to do what you can to reshape the scope of the position, if necessary, depending upon the candidate's strengths and desire for opportunities for advancement.
5. Advancement opportunities. A commitment to review and adjust salary levels in 90 days or six months gives both parties a chance to check each other out. Emphasizing the potential for promotions and merit raises or bonuses may clinch the deal with someone interested in establishing a relationship with the company and who has an eye on the future. In fact, the prospect's interest in advancement opportunities could provide a very important clue to the type of employee he or she will turn out to be. Workers who are only interested in initial salary levels and not future opportunities could simply be out looking for the highest bidder. As soon as another company offers them more money, they'll quit.
6. Other perks. Other incentives that can help sway a candidate to accept your offer include life insurance, disability insurance, employee stock option programs (ESOPs), and 401K and other retirement plans that feature matching contributions from the company. Older candidates will be more likely to appreciate the true value of these benefits; younger candidates typically would rather have the dollar equivalent added to their checks.
One note of caution: Remember that nothing is a secret. You may think that your negotiations to get this hot go-getter onto your team will remain confidential. Somehow, the details always leak out. Make too many concessions, and morale and attitude through out your department can be affected, creating more headaches for you than the hotshot is worth. You could also find yourself facing an EEOC complaint for not treating everyone equally.
Presenting the job offer is the culmination of a great deal of work to find the ideal candidate. You should feel good about getting to this point. You'll feel even better if you're able to put together an offer that the candidate accepts. Now, don't forget about the training. We'll talk about that next month.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
Serious inland flooding and widespread power outages are likely to sweep across Florida and other Southeast states in coming days with the arrival of Hurricane Helene, which is now predicted to make landfall Thursday evening along Florida’s northwest coast as a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
While the most catastrophic landfall impact is expected in the sparsely-population Big Bend area of Florida, it’s not only sea-front cities that are at risk. Since Helene is an “unusually large storm,” its flooding, rainfall, and high winds won’t be limited only to the Gulf Coast, but are expected to travel hundreds of miles inland, the weather service said. Heavy rainfall is expected to begin in the region even before the storm comes ashore, and the wet conditions will continue to move northward into the southern Appalachians region through Friday, dumping storm total rainfall amounts of up to 18 inches. Specifically, the major flood risk includes the urban areas around Tallahassee, metro Atlanta, and western North Carolina.
In addition to its human toll, the storm could exert serious business impacts, according to the supply chain mapping and monitoring firm Resilinc. Those will be largely triggered by significant flooding, which could halt oil operations, force mandatory evacuations, restrict ports, and disrupt air traffic.
While the storm’s track is currently forecast to miss the critical ports of Miami and New Orleans, it could still hurt operations throughout the Southeast agricultural belt, which produces products like soybeans, cotton, peanuts, corn, and tobacco, according to Everstream Analytics.
That widespread footprint could also hinder supply chain and logistics flows along stretches of interstate highways I-10 and I-75 and on regional rail lines operated by Norfolk Southern and CSX. And Hurricane Helene could also likely impact business operations by unleashing power outages, deep flooding, and wind damage in northern Florida portions of Georgia, Everstream Analytics said.
Before the storm had even touched Florida soil, recovery efforts were already being launched by humanitarian aid group the American Logistics Aid Network (ALAN). In a statement on Wednesday, the group said it is urging residents in the storm's path across the Southeast to heed evacuation notices and safety advisories, and reminding members of the logistics community that their post-storm help could be needed soon. The group will continue to update its Disaster Micro-Site with Hurricane Helene resources and with requests for donated logistics assistance, most of which will start arriving within 24 to 72 hours after the storm’s initial landfall, ALAN said.