Trucking fleets face a growing risk of losing critical operational knowledge as experienced workers retire, while younger professionals continue to leave the industry because of limited mentorship and career development opportunities, a transportation executive told attendees at the Private Motor Truck Council of Canada’s annual conference in Niagara Falls, Ont.

Mo Baki, director of transportation at Polaris Transportation Group, said the industry is focused on labor shortages but is paying insufficient attention to the loss of expertise that accompanies an aging workforce. He said the challenge extends beyond replacing workers and includes preserving decades of operational knowledge accumulated by experienced employees.

“The knowledge walking out the door when your most experienced people retire is the greatest risk that we are not talking about,” Baki said. “The talent that we’re failing to keep, the graduates, the early career professionals, the people who come in hungry and leave frustrated, that’s the second biggest risk.”

According to Baki, about 36% of Canada’s transportation and logistics workforce is over the age of 55, while approximately 25% of experienced professionals are expected to retire within the next decade. At the same time, post-secondary supply chain and logistics programs are producing record numbers of graduates, yet fewer than 40% find meaningful industry roles within their first year after graduation.

He said graduates commonly cite a lack of structured onboarding, a disconnect between classroom learning and workplace expectations, and the absence of mentors as reasons for leaving the industry.

Operating in parallel instead of together

Baki argued that trucking and logistics companies are operating with two largely separate groups: veteran employees who possess years of operational experience and younger workers who bring digital skills and new perspectives. Rather than working together, the groups often operate in parallel, limiting opportunities for knowledge transfer and innovation.

Veteran workers possess operational instincts, crisis-management judgment, and industry relationships developed over decades. New entrants, meanwhile, bring expertise in data analysis, automation, and emerging technologies, as well as familiarity with tools many established professionals have yet to adopt.

“The problem is not that these two groups exist,” Baki said. “The problem is that we’ve built a culture unintentionally where they operate in parallel instead of together.”

To address the issue, Baki outlined four strategies fleets can adopt: structured knowledge transfer programs, reverse mentoring, stronger academic partnerships, and internal leadership development initiatives.

Structured knowledge transfer

Structured knowledge transfer involves documenting critical processes before employees retire, creating formal shadowing programs, and establishing measurable learning objectives rather than relying on informal observation. The goal, he said, is to move knowledge from individuals into systems, documentation, training programs, and future leaders.

Reverse mentoring can also benefit organizations by allowing experienced employees to share operational expertise while younger workers help introduce technology and more efficient ways of working. Such relationships can improve employee engagement and retention.

“The relationship that forms between them is the single most effective retention tool you have,” he said, referring to mentoring relationships between experienced employees and new hires.

Relationships with colleges and universities

Baki also encouraged fleets to build stronger relationships with colleges and universities through co-op placements, capstone projects, and direct engagement with educators. By exposing students to real operational challenges and informing academic institutions about industry needs, companies can help ensure graduates are better prepared for transportation careers.

He said academic institutions often welcome industry involvement but are not always approached by employers seeking to influence curriculum and provide practical learning opportunities. Companies can benefit from gaining access to talent while helping students develop skills relevant to real-world transportation and logistics operations.

The most effective solution, however, may be formal internal development programs that provide employees with visible career pathways, he said. Workers are more likely to stay when they understand how they can advance within an organization and are given opportunities to develop the skills needed for leadership roles.

“People stay where they can see a future,” Baki said. “They leave when they feel like they’ve hit that ceiling.”

Building leadership

As an example, Baki highlighted Polaris Transportation Group’s Larry Cox Academy, an 18-month rotational development program established about four years ago. The program allows employees from across the company to apply for placements in multiple departments, including operations, finance, warehousing, logistics, pricing, and safety. Participants complete structured learning objectives, receive evaluations based on outcomes, and are paired with executive sponsors who guide their development.

Participants rotate through six departments, including four mandatory placements and two electives selected with guidance from executive sponsors. Department leaders are responsible for ensuring participants achieve defined learning objectives and gain an understanding of how each area of the business operates and connects with the rest of the organization.

Baki said graduates of the program have advanced into leadership and specialized roles across the organization, including operations management, information technology, pricing, and frontline supervision positions. The initiative succeeds because it is designed around learning outcomes and accountability rather than simply filling staffing needs, he said.

“Every retirement is about 20 or 30 years of operational knowledge walking out the door,” Baki said. “If we haven’t started capturing it, not when they hand in the resignation, but right now, we’re already behind.”

Baki warned that delaying succession planning only increases organizational risk. Companies often realize the importance of institutional knowledge only when a key employee leaves unexpectedly, forcing managers to react rather than prepare. Effective succession planning, he said, should extend beyond identifying one replacement and include multiple layers of future leadership.