Fleet News

Redundancy rate increasing

The number of transport executives, including fleet managers, being made redundant has now reached a seven-year high.

In the transport sector, the current redundancy rate is 2.1% – up 1.2% compared to the first quarter of 2007 – according to a survey commissioned by the Chartered Management Institute (CMI).

Resignations are also on the rise, with 3.8% of transport industry workers leaving their jobs so far in 2008, up from 2.4% last year.

However, transport workers are now earning an average of 10% more then they did last year.

Managers’ earnings have increased by an average of 4.4%.

Jo Causon, director of marketing and corporate affairs at the CMI, advised companies that despite improvements in pay, more must be done to retain staff.

“Increased levels of pay are clearly not enough to retain employee loyalty despite the uncertain economic climate,” she said.

“Given the skills crisis, it is worrying to see so many executives voting with their feet and this must surely send a message to employers that, to retain the best talent, they need to address working environments and long-term career aspirations.”

The CMI survey also found that staff retention is not the only problem facing transport and logistics companies.

The majority of organisations (80%) have admitted to continuing difficulties when it comes to filling vacancies in transport posts.

The overwhelming reason for not employing new staff was a lack of specialist skills relevant to transport and the fleet sector, with 70% of companies struggling to find expert executives.

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