Why the merit logistics market is so volatile
A new study has found that the merit-based business model, which has dominated in recent years, is in the midst of a “major transition.”
It found that companies like Amazon, eBay, and even Apple have shifted away from merit-driven hiring practices to focus on more customer-centric approaches, and that these are increasingly gaining traction.
In short, the study, titled The Lean In Effect: The Impact of Lean In on the Lean-In Economy, said the “shift away from traditional merit-oriented hiring and promotion practices” is being driven by a shift in the way people are recruited.
“There is a shift away from a traditional merit based recruitment model toward a customer-driven approach, which may result in an increase in the size of the hiring pool,” it said.
The study surveyed nearly 3,000 employers and found that only 30 per cent of those surveyed were using merit- and performance-based recruitment.
The other 25 per cent were focusing on customer-centered approaches.
“While a merit- based approach may appear more appealing to potential candidates, the shift away to customer-focused hiring and promotions is being accelerated by an increasing number of employers adopting customer-oriented practices,” the study said.
In other words, companies are looking for a new way to recruit.
“As the industry moves away from the traditional merit/merit-based approach to customer engagement, it may be more challenging for managers and employees to effectively communicate to candidates and employees what is happening in the recruitment process,” the authors wrote.
“The result may be an increased likelihood that candidates may become disengaged from the company and/or leave the company without an engagement plan, thus increasing the likelihood that the recruitment and retention of new employees is negatively impacted.”
It added that many employers may not have a good understanding of how to effectively recruit and retain their employees, or that they may not be able to effectively motivate them.
“Despite the increased reliance on merit-and performance-focused recruiting, there is still little clarity in the market about the best practices for hiring and retention, especially for those new to the industry,” the report said.
“A large portion of organizations fail to define their best practices, or do not know how to implement them effectively, which leads to poor retention.”
The study also said the industry is in a period of rapid growth, with companies expanding to areas that traditionally had only been touched on.
It noted that there are now more than 500,000 companies operating in the US.
It found there are about 4.5 million U.S. employees and more than 1.5 billion customers, which makes it the fastest growing segment of the U.s. economy.
“It is estimated that the number of jobs in the U