The HR Landscape in Transport and Logistics
Transport and logistics is one of the UK's largest employment sectors, and one of the most demanding from an HR perspective. Whether you run a haulage fleet, manage warehouse and distribution operations, or coordinate supply chain logistics, your people challenges are more complex than in most industries.
Your workforce is mobile, often spread across multiple depots or on the road. Many of your staff work unsociable hours, nights, and rotating shifts. You rely heavily on agency workers alongside permanent employees. Contracts change hands regularly, triggering TUPE transfers. And the regulatory environment, from drivers' hours to health and safety, adds layers of compliance that require specialist knowledge to navigate.
This guide covers the biggest HR challenges we see in transport and logistics businesses, and practical steps to address them. If you need specialist HR support for your logistics operation, we are here to help.
Driver Shortages and Recruitment
The UK has faced a well-documented shortage of qualified drivers for years. An ageing workforce, poor perception of the industry, lengthy qualification requirements, and competition from the gig economy have all contributed. While the crisis headlines have faded since the post-Brexit and post-pandemic peaks, the underlying shortage remains.
For logistics businesses, this creates a constant pressure to recruit and a competitive market for qualified drivers. Recruitment costs in transport are high, and the time it takes to find, screen, and onboard a replacement driver can disrupt your entire operation.
What You Can Do
- Review your employment offer. Pay is important, but it is not the only factor. Shift patterns that allow for a reasonable work-life balance, predictable rotas, and wellbeing support all influence whether drivers choose your business or a competitor
- Invest in training. Bringing in less experienced drivers and training them up is a viable long-term strategy, particularly if you combine it with structured career progression
- Streamline your recruitment process. A slow hiring process loses candidates. Get your employment contracts and onboarding process ready so you can move quickly when you find the right person
- Consider apprenticeships. Government-funded apprenticeship programmes can offset the cost of training new drivers
Retention and Turnover
Recruiting drivers is only half the battle. Keeping them is equally challenging. High turnover in logistics is costly: every driver who leaves takes their route knowledge, customer relationships, and training investment with them. The cost of replacing a single driver, including recruitment, training, and the productivity dip during the transition, can run into thousands of pounds.
The drivers who leave often cite the same reasons: poor management, lack of recognition, inconsistent shift patterns, feeling disconnected from the business, and a sense that their work is not valued.
What You Can Do
- Train your managers. Front-line managers and depot supervisors have the biggest influence on whether drivers stay or leave. Investing in management training on communication, feedback, and handling difficult conversations pays dividends in retention
- Run regular check-ins. Drivers who feel heard are more likely to stay. A simple quarterly check-in, even by phone for those on the road, gives you early warning of issues before they escalate to resignations
- Build an employee engagement strategy. This does not need to be complicated. Recognition, clear communication about business changes, and involving drivers in decisions that affect their work all make a difference
- Use exit interviews. When people do leave, find out why. Patterns in exit interview data can highlight systemic issues that are driving turnover
Working Time Compliance
Transport is one of the few sectors where the 48-hour weekly working time opt-out does not apply. Mobile workers in road transport are subject to the Road Transport (Working Time) Regulations 2005, which cap average weekly working time at 48 hours with no individual opt-out.
This creates a genuine compliance challenge, particularly for businesses running 24/7 operations or relying on drivers who want to work longer hours to earn more. The overlap between drivers' hours rules (governing driving time) and the Working Time Directive (governing total working time) catches out many employers.
We have written a detailed guide to drivers' hours and the Working Time Directive that covers both sets of rules, the penalties for non-compliance, and practical steps for employers.
Key Risks
- Operator's licence. Serious or repeated working time breaches can lead to traffic commissioners revoking or restricting your operator's licence
- Unlimited fines. Employers face unlimited fines for working time offences
- Fatigue-related incidents. Beyond the legal risk, overworked drivers are a safety risk. If an accident is linked to excessive working hours, the consequences for your business and your people are severe
Agency Workers and Mixed Workforces
Most logistics businesses use agency workers to some extent, whether for peak periods, new contract start-ups, or ongoing gaps in their permanent workforce. Managing a mixed workforce of permanent employees and agency workers creates specific HR obligations under the Agency Workers Regulations 2010.
After 12 continuous weeks in the same role at your site, agency workers are entitled to the same basic pay and working conditions as comparable permanent employees. Structuring assignments to avoid triggering this threshold is caught by anti-avoidance rules. If you also engage workers through personal service companies, the IR35 off-payroll working rules add further compliance obligations.
What You Can Do
- Track qualifying periods. Know which agency workers have passed the 12-week mark and ensure equal treatment is applied
- Audit your pay structures. Compare agency worker pay against permanent employee pay for the same roles. Identify and address any gaps
- Review your contracts with agencies. Ensure your agency agreements address AWR compliance, working time monitoring, and information sharing
- Train your managers. Depot and warehouse managers need to understand that agency workers have rights and that treating them differently can create legal liability
TUPE Transfers
In logistics, contracts change hands regularly. When you win a new distribution contract, the staff delivering that service for the previous provider may transfer to you automatically under TUPE, bringing their existing terms, conditions, and continuous service. When you lose a contract, the reverse applies.
TUPE is complex and the stakes are high. Failure to inform and consult carries a protective award of up to 13 weeks' gross pay per affected employee. Inherited liabilities from the outgoing employer can include outstanding tribunal claims, unpaid holiday, and contractual commitments you were not aware of.
What You Can Do
- Start early. As soon as you know a contract is changing hands, begin planning for TUPE. Request Employee Liability Information from the outgoing employer at least 28 days before the transfer
- Get specialist support. TUPE is an area where professional HR advice almost always saves money. A mishandled transfer can cost far more than the consultancy fee. Our TUPE support service manages the entire process
- Communicate clearly. Affected employees are anxious during TUPE transfers. Clear, honest communication about what is happening and what it means for them reduces resistance and helps with post-transfer integration
- Plan for integration. TUPE does not end on the transfer date. Integrating new staff into your culture, systems, and ways of working takes time and attention
Absence Management
Absence rates in transport and logistics are consistently higher than the national average. The physical demands of driving, warehouse work, and manual handling contribute to musculoskeletal injuries. Shift work and long hours affect mental health and sleep quality. And the mobile nature of the workforce makes it harder to spot patterns and intervene early.
Unplanned absence in logistics has an immediate operational impact. A driver calling in sick at 5am means a route is uncovered. A warehouse operative absent during a peak shift creates a backlog that ripples through the supply chain.
What You Can Do
- Implement a clear absence policy. Your policy should cover reporting procedures (who to call, by when), trigger points for formal review (e.g., Bradford Factor thresholds), return-to-work interviews, and how long-term absence is managed
- Train managers on return-to-work conversations. These are one of the most effective tools for reducing short-term absence, but only if they are done properly. They should be supportive, not punitive
- Track absence data. Use your HR software to monitor patterns. Are certain shifts, depots, or teams consistently higher? Is there a correlation with particular managers?
- Support wellbeing. Lone working on the road can be isolating. Fatigue, poor diet, and limited access to exercise are common among drivers. Simple wellbeing initiatives, such as mental health awareness training for managers, access to an employee assistance programme, and regular check-ins, can make a meaningful difference
Health and Safety
Transport and logistics carries inherent physical risks. Manual handling injuries in warehouses, road traffic incidents, fatigue-related accidents, and the mental health impact of lone working on the road are all significant concerns.
Under the Health and Safety at Work Act 1974, you have a duty to protect your employees regardless of where they work. For logistics businesses, this means managing risks across depots, vehicles, client premises, and the road itself.
What You Can Do
- Conduct regular risk assessments. Cover your depots, warehouses, vehicles, loading areas, and any client premises your staff visit
- Provide proper training. Manual handling, forklift operations, vehicle safety checks, and driver fatigue awareness should all be covered
- Address mental health. Lone working, long hours, and being away from home all affect mental health. Train managers to spot the signs and create a culture where people feel comfortable asking for help
- Integrate health and safety with HR. Accident reporting, fitness-to-work assessments, and absence management all sit at the intersection of HR and health and safety. Our health and safety service integrates both
Getting the Right HR Support
The HR challenges in transport and logistics are real, but they are manageable with the right support. Many logistics businesses do not have the size or budget for an in-house HR team, but they face the same employment law obligations as larger organisations.
Outsourced HR support gives you access to specialist knowledge without the overhead. At Rebox HR, we work with haulage companies, courier firms, freight forwarders, warehouse operators, and distribution businesses across the Midlands and beyond. We understand how logistics operations work and we tailor our HR support to fit.
Whether you need help with a specific issue, such as a TUPE transfer or a disciplinary process, or you want ongoing retained HR support for your entire operation, book a free consultation and let us show you how we can help.
