ARGS caught up with Juliet Thomson, Chief People Officer at Menzies, on the IGHC sidelines to learn more about Menzies’ business expansion. In the last few years, the ground services provider has completed several acquisitions in the ground handling sector globally.
In August 2022, the company was acquired by Agility and combined with National Aviation Services (NAS). Since then, Menzies has launched operations in Serbia and Chile, bringing on new staff, and acquired 50.1% and 50% stakes in Groundforce Portugal and Jardine Aviation Services Group (now rebranded Menzies CNAC), respectively.
But how will the company tackle the challenges facing ground handling today, including post-pandemic labour shortages, wage inflation and attrition?
“We were obviously severely hit by the pandemic in the same way that lots of other companies were,” said Thomson.
Pre-Covid, Menzies had around 32,000 workers globally. At the height of the pandemic, that went down to 18,000 active employees.
“We’re now sitting at 46,000 colleagues globally, so recruitment is something we know a thing or two about, I’d say, and we have focused very heavily on that over the last several years,” she added.
But the ground services provider still identifies labour challenges in the East. According to Thomson, countries that were slower to ease pandemic restrictions are harder to recruit in today. Namely, that includes Australia, New Zealand and the wider Asia-Pacific region.
There’s still a “huge appetite” to work in aviation, though, Thomson highlighted. “In the developing markets, we’ll get lots and lots of applicants for any single job… It’s a lot easier to recruit [in these markets].”
However, the pandemic has changed the way Menzies, and its competitors, recruit. The company now drives recruitment through social media channels to reach younger audiences. And it also streamlines the process for the next generation “who don’t just want to sit down at a computer to fill in a long, complex application form”.
Wage inflation has also impacted the business post Covid. “What’s key for us,” explained Thomson, “is staying close with our trade unions and working closely with the airlines as well to understand the importance of making sure we’ve got competitive wages”.
She added: “It goes back to staff retention. It’s in nobody’s interest to have a high staff turnover, and one piece of the puzzle is making sure the wages are competitive and the wages are right.
“We know that if we can have competitive wages, people will stick with us for longer, it makes our operations safer and improves performance with our customers.”
When Menzies combined with NAS, the company’s workforce increased by around 4,000 people. And since starting up in Serbia, the company has taken on 900 more employees, in addition to the 1,600 it took on as part of its new joint venture with CNAC and 700 new colleagues in Chile.
ARGS asked Thomson whether any more acquisitions are on the cards for 2024 and 2025. She said: “It’s no secret that our strategy continues to focus on developing markets. We’ll be continuing to focus on South America, Asia and the Middle East. No specifics, but there’s a big group focus for Menzies as a business.
“We’ve got big ambitions to continue to grow, so hopefully more to report on that soon.”
