Integrating ESG Principles into HR Strategy in Logistics Industry

By: Mili Chikhal, Head of Human Resources, Dachser Indian Subcontinent

Mili is a dynamic leader with extensive experience in HR management across diverse sectors, including EPC, Supply Chain, Aviation, and Retail. She excels in driving strategic initiatives, fostering a positive work culture, and implementing innovative talent management and performance systems to align with business goals.

In an insightful interaction with Women Entrepreneurs Review Magazine, Mili shares insights on harmonizing HR strategies across diverse geographies with varying regulatory, cultural, and operational dynamics. She also discusses integrating ESG principles into HR strategy within logistics, fostering workforce engagement in sustainability, and creating seamless talent development pathways across industries like aviation, tech, and retail.

How do you harmonize HR strategies across geographies with differing regulatory, cultural, and operational dynamics? Can you share a specific challenge where this balancing act led to a transformative result?

The alignment of HR strategies requires a finely tuned, integrative and strategic approach. An understanding of key values, corporate policies and goals that reflect the organization's identity forms the basis for the HR strategy. My focus is on developing a comprehensive HR framework that takes into account local contexts (regulations, compliance, etc.), culture and market conditions. Building on this, we develop standardized HR processes and use the latest technologies. Collaborative communication and the promotion of an inclusive culture are key factors in the development of HR strategies. A continuous feedback mechanism ensures that HR strategies remain relevant and effective and that constant further development is made possible.

Dachser India’s recognition as a Great Mid-Size Workplace in 2023 and its Great Place to Work-Certified™ status in 2022 highlights the organisation’s commitment to fostering a culture characterised by respect, tolerance, and inclusivity.

How do you integrate ESG principles into HR strategy? How do you engage the workforce in sustainable practices and ensure they align with corporate values and long-term sustainability goals?

Sustainability is intrinsic to Dachser's ethos. We embed ESG principles into HR strategies by aligning them with our logistics operations and corporate values. Logistics is a complex interplay of goods and information flows in intelligent networks, and people are and remain the key to their success and reliability. This philosophy is embodied in the “Logistics is People Business” approach, which has many faces in the strategy and everyday life of the family-run company.

Building on this foundation, we focus on optimising intelligent logistics networks, ensuring resource efficiency, and fostering long-term environmental stewardship.

Corporate strategic campaigns like Idea2Net encourage our employees to innovative contributions also in connection with sustainability goals. By integrating ESG principles into HR frameworks and regularly sharing progress through town halls and reports, we foster a shared commitment to sustainability that unites corporate objectives with employee efforts, driving meaningful impact and long-term success.

With logistics intertwining with industries like aviation, tech, and retail, how do you create talent development pathways that allow employees to move across sectors seamlessly?

In logistics, where both unskilled and skilled workforce gaps exist, creating cross-industry talent pathways is crucial. At Dachser, we identify core skills transferable across sectors, such as customer service, IT proficiency, and project management. Our training programmes combine knowledge-sharing initiatives and partnerships with industry experts to upskill employees.

For instance, we enable employees to rotate across roles, enhancing their versatility and career progression. Open communication and aligned organisational values ensure employee retention while fostering loyalty. Our commitment to nurturing talent facilitates seamless transitions across sectors, ensuring organisational and individual growth.

With logistics becoming increasingly global and interconnected, how do you foster collaboration and cohesion among geographically dispersed teams?

Fostering collaboration among geographically dispersed teams begins with a shared vision and inclusive values. At Dachser, we follow the principle, “Together, we are a strong global network”. And a network is only as good as its individual parts. That underscores the importance of cohesion and collaboration. Key Performance Indicators (KPIs) encourage cross-team collaboration, supported by IT tools for effective communication.

Interactive sessions, team-building activities, and leadership workshops break silos and cultivate teamwork. Leaders actively engage with teams to ensure alignment with organisational goals. The inclusive responsibility culture ensures teams at different locations pursue the mission of creating the world's most intelligent combination and integration of logistical services, contributing to the overall success of the organisation.

How do you design HR processes that cater to both full-time employees and gig economy workers? How do you ensure equity, fairness, and engagement in a diverse workforce?

While Dachser India currently does not employ gig workers, the organisation takes a global perspective on workforce inclusivity and flexibility. Processes are designed to ensure equity and fairness for all employees, aligned with overarching values and codes of conduct.

Dachser remains committed to fostering an environment where all employees, irrespective of their employment type, feel valued. By leveraging technology and innovative HR practices, the organisation continuously strives to build cohesive teams. This approach highlights adaptability to evolving workforce trends while maintaining global standards of excellence and inclusivity.

How does HR ensure that employees, from the warehouse floor to management, are continually developing necessary technical and digital skills? What unique training programs or partnerships would you create to build a digitally savvy workforce?

Digitalisation is a cornerstone of Dachser’s strategy. Through the Strategic Focus Programme Digitalisation, the organisation prioritises the development of applications and fosters a digital mindset to drive innovation and efficiency. Tailored learning platforms provide role-specific training for warehouse staff and management, ensuring continuous skill development across all levels.

Collaborations with universities and industry experts further enhance these programmes, while initiatives like Idea2Net campaigns encourage employees to contribute innovative ideas. Feedback mechanisms, including retrospectives, help refine the digital learning culture. By equipping employees with advanced tools and knowledge, Dachser maintains a competitive edge in the logistics industry, ensuring operational excellence and workforce preparedness.