The COVID-19 pandemic transformed the workforce landscape, thrusting remote work into the spotlight while elevating the demand for on-site workers in essential roles. Professions like plumbing, trucking, and grocery logistics remained critical, leading to a swift rise in wages for hourly workers in sectors like retail and manufacturing. Employers also began to offer robust education benefits, allowing workers to earn degrees while remaining in their jobs. Chipotle even marketed itself as a gateway to upward mobility, dubbing it “the fastest path to the middle class.”
“Wages are rising, and more employers in fields such as healthcare and transportation are investing in ways to retain and promote their employees from within,” says Josh Bersin, a global HR analyst. For example, Disney spends over $20 million each year on employee development programs.
However, many challenges linger despite the pay increase. Issues such as high turnover, absenteeism, and inconsistent work quality continue to plague both workers and employers. Companies are grappling with rising costs and labor shortages across various industries.
Joshua Kleyman, chairman of the National Logistics Training Center and CEO of Citizen Trucking, recently highlighted these workforce hurdles at EdTech Week in New York. He shared that his team identified tech solutions, including automated chatbots, to address absenteeism and enhance safety in their operations. They also launched an education initiative to better equip commercial drivers in their area.
“We’re not just throwing AI at the problem; we need to understand the underlying issues first,” Kleyman noted. By leveraging AI, he and his team pinpointed the main causes of turnover—medical issues, scheduling conflicts, manager relationships, and personal emergencies.
At Bonvoy Distribution, for instance, the lack of notice for absences from about 5% of its 700 blue-collar workers prompted the development of a chatbot, which significantly halved the absence rate. This initiative not only lowered turnover but also reduced overtime costs.
Kleyman explained the relatively simple yet effective process of integrating these solutions, emphasizing that the results translated into substantial savings and improved operations.
In addition to chatbots, various tech solutions are emerging to tackle workers’ needs, ranging from childcare access to vocational training programs. Notably, research shows that about 10% of U.S. workers face language barriers, which presents an opportunity for workforce development.
Raja, leading JFF’s venture fund, identified a gap in traditional English training programs, which often neglect vocational vocabulary. Her fund’s first investment, Pace AI, directly addresses this need by teaching work-specific language skills.
As businesses continue to seek solutions for their frontline workers, Kleyman shared his efforts to establish Zeta Driving School, an internal program to train commercial drivers. Given the tight labor market, instead of competing for workers amid skyrocketing hiring bonuses, they opted for training their own talent. At a cost of around $2,000 per student, they provide stipends during training, and the long-term benefits have been significant.
This strategy has led to improved safety records, greater job tenures, and a boost in diversity with more female participants joining the program. “Every driver we’ve trained in-house has been more successful; that’s why we pursued it, and it has yielded impressive results,” Kleyman concluded.