Road transport and distribution: recruitment issues ease but still persist

The road transport and distribution sector is still facing the lingering effects of a changed labour market. The onset of the pandemic saw acute recruitment and retention issues – which were compounded by the introduction of new Brexit rules which resulted in the loss of workers from EU countries. Our recent survey of HGV drivers indicates that while recruitment remains difficult, when drivers are hired, more are staying than before. The survey provides a picture of pay in the road transport and distribution sector.

Although it is comparatively easier than in recent years, recruitment for driving roles is still challenging for many employers, according to the survey. Nearly half of the participants (47%) reported that they are still facing difficulties with recruitment. Although this is a substantial decrease from the 80% figure in our 2021 survey, recruitment still remains a significant issue. 

Employers have taken measures to counteract recruitment problems. In particular, they have significantly boosted pay rates and provided more training to aid with recruitment and retention in driver-based roles. The results of our research show that the median for the most skilled drivers (HGV Class 1) is £28,296. This is up from £23,558 (a rise of 17%) from 2021. The increase in the median pay level is partly due to higher pay awards. Pay awards in the logistics sector have generally increased, according to the survey. The median pay award for drivers (in the 12 months to September 2023) was 5% - with over 80% of pay awards worth 4% or more. This is an increase compared to our study from 2021 in which only 25% of employers paid this level of award, with the medium pay award that year at only 2.28%.

The survey indicates that employers are facing fewer challenges with retaining staff with just 40% of employers reporting retention difficulties. This is a significant drop from the 2021 study where 70% reported retention issues. The proportion of those that found retention issues ‘very difficult’ dropped from 15% in 2021 to just 3% in 2023. One participant reported that they have experienced higher turnover among newly-employed drivers due to them being ‘able to move jobs easier’ while longer-serving drivers generally stay. In addition, another participant reported implementing internal reward packages to incentivise workers to stay.

Since the pandemic, the workload of HGV drivers has increased significantly due to the growth of the digitalised marketplace. This has increased competition for drivers. Although recruitment and retention has become easier, issues remain. In particular, the demanding nature of the work involved, with long hours common – employers report that drivers are usually contracted for basic weekly hours of 38 but typically work between 50-60 hours per week – is a continued obstacle to recruitment.

Notes for editors

The survey, conducted between May and June of 2023, received detailed responses from 30 organisations in the road transport and distribution sector – including retailers that employ drivers. It provides an insight into employee pay and conditions for driving roles. For enquiries relating to this research, please contact Esther Enyinnaya -estherenyinnaya@incomesdataresearch.co.uk