How Technology Can Help LSPs Attract, Engage, and Retain Talent

What can forward-thinking LSPs do to address this talent crisis? It starts with rethinking how to attract, retain, and engage employees. Technology can play a pivotal role in creating a workplace that’s more appealing, efficient, and rewarding, while also alleviating concerns about job security in an era of increasing automation.

The Labor Shortage: A Long-Term Issue

The challenge of attracting and retaining talent isn’t new, but it’s becoming more pronounced. A December 2024 Indago survey found that 58% of supply chain executives described hiring qualified blue-collar workers as either “Very Challenging” (31%) or “Challenging” (27%). White-collar roles were only marginally easier to fill, with 50% of respondents citing significant challenges.

This struggle is part of a larger trend. Declining birth rates, baby boomer retirements, and shifting worker preferences have all contributed to a labor market that is unable to meet demand. As Lauren Weber and Alana Pipe wrote in the Wall Street Journal, “While the labor market is softening, none of those factors are expected to change dramatically in the coming years.”

For LSPs, this means adapting to a new reality: the talent shortage isn’t temporary. Addressing it requires long-term strategies that leverage technology to improve the workplace and the employee experience.

How Technology Attracts Top Talent

1. Making Work More Interesting and Engaging Advanced technology, such as automation tools and AI-driven platforms, eliminates many tedious and repetitive tasks, allowing employees to focus on higher-value, more rewarding work. For example, instead of spending hours manually entering data, employees can use tools that streamline documentation, freeing them to analyze trends, solve problems, or engage in more strategic tasks.
2. Enhancing Workplace Safety In warehouses and distribution centers, technology such as IoT sensors, robotics, and advanced tracking systems can significantly reduce safety risks. By automating dangerous tasks and improving monitoring, employees can work in a safer environment, which is a top priority for many workers.
3. Reducing Bureaucratic Burdens Automated compliance and documentation processes save time and reduce frustration. Employees no longer need to sift through mountains of paperwork or manually track regulatory requirements, enabling them to focus on more meaningful aspects of their jobs.
4. Creating a Modern, Tech-Forward Environment Today’s workforce—especially younger generations—wants to work for companies that invest in cutting-edge technology. A tech-forward workplace is not only more productive but also more attractive to job seekers who value innovation and forward-thinking cultures.

Addressing Automation Concerns

One of the most common fears among employees is that automation will eliminate jobs. While technology can indeed replace certain tasks, it’s also creating new opportunities. Automation doesn’t have to be a threat—it can be an enabler. Here’s how LSPs can frame the conversation around automation:

• Focus on Job Enrichment: Emphasize how automation removes repetitive tasks, enabling employees to focus on more engaging, higher-value work.
• Upskilling Opportunities: Provide training and development programs to help employees gain new skills that align with technological advancements.
• Communicate the Bigger Picture: Share how automation supports the company’s growth, creating new roles and career opportunities over time.

As one logistics executive noted, “The greatest challenge is overall competition for good employees.” By showing employees how technology enhances their work rather than replacing it, LSPs can foster a sense of security and loyalty.

Retention: Building a Better Employee Experience

Attracting talent is only half the battle. Retention is equally critical. Here’s how technology can help:

• Flexibility and Remote Work: Digital platforms enable greater flexibility, allowing employees to work remotely or on more adaptable schedules.
• Recognition and Engagement: Use technology to implement recognition programs, gather employee feedback, and measure satisfaction in real-time.
• Streamlined Onboarding and Training: Leverage online training platforms to onboard employees quickly and effectively, ensuring they feel confident and capable from day one.

How Magaya Can Help

Magaya is dedicated to delivering the technology that supports LSPs in creating a more attractive and engaging workplace. From automation tools that reduce tedious tasks to platforms that enhance visibility and collaboration, Magaya empowers employees to work smarter, not harder. Key benefits include:

• Enhanced Safety: When used together, Dimensioner by Magaya and Flow WMS by Magaya enable users to capture accurate pallet dimensions without leaving the forklift, reducing the opportunity for workplace accidents.
• Streamlined Operations: Automated documentation and compliance processes in Magaya Customs Compliance save time and improve accuracy.
• Increased Job Satisfaction: By eliminating repetitive work with an integrated platform, the Magaya Digital Freight Platform, employees can focus on meaningful tasks that drive value.

Conclusion

The labor shortage isn’t going away, but LSPs have the tools to adapt. By leveraging technology to create a safer, more engaging, and more innovative workplace, forwarders can attract and retain top talent, even in a competitive market.

Ultimately, technology isn’t just about efficiency—it’s about empowering employees to thrive. With the right strategies and tools, LSPs can turn today’s labor challenges into tomorrow’s opportunities.

Download the State of Digitization in Freight Forwarding 2025 report to learn more about the logistics labor shortage and how LSPs can use technology to attract, engage, and retain talent. This free 22-page report explores current trends and uncovers the biggest digitization priorities for LSPs as well as the challenges they face in 2025.