Driver Retention

Driver Retention

Labor is the single biggest cost for any trucking company. In unionized trucking companies in particular, labor costs (including strikes) can have a large effect on the continued existence of the company. In addition, driver shortages have made labor costs and availability for trucking companies troublesome. Driver shortages have negative ramifications on the economics of the trucking industry. Until recently, several trucking companies reported that they had more freight shipments and fewer drivers to deliver the goods. The current economic recession is only providing a brief respite from the driver shortage problem.

Driver turnover is a big part of the driver shortage problem. For instance, when the economy is healthier than it is now, around half of drivers with US trucking firms leave their jobs within three months of starting work. Many of the drivers who leave their jobs in the first three months of employment are thought to quit because of some sort of personality clash with the employer. In some cases, according to the researchers, the methods of operation of the company are not fully explained or understood at the initial recruitment stage. A possible solution would be to make more use of realistic job previews that would help to reduce the gap between the driver's expectation of what the job entails and the reality of life on the road with the particular firm. Being sure from the start of what the job entails, through greater clarity at the interview stage, should help a driver to cope with any consequent job-related stress.

Chronic driver turnover can harm a firm's competitiveness though disrupted delivery services, expensive equipment being under-used and excessive recruiting expenses. Various attempts have been made to address the problems, many firms boosting pay, others rewarding long service or introducing bonus programs for safe-driving records, profit-sharing schemes, flexible schedules and reduction in non-driving activities. One firm even invested $6 million in a state-of-the-art driver-training center.

One idea to reduce driver turnover is to target drivers with more than five years' experience. An increasing number of firms require drivers to have at least one year of driving experience, but the researchers recommend that trucking companies target drivers with more than five years, as the cost of switching to another job is low for a driver who has devoted a smaller amount of time to his or her profession. Recruiting drivers with more than five years' experience may, however, involve the offer of special incentives, such as sign-on" bonuses or a merit pay raise linked to their experience, as well as formal recognition of their years of experience by treating them as "leaders" or "mentors" with greater authority to make their own decisions. The researchers recommend that recruitment and retention strategy should involve clear identification of incentives that work for the profile of driver the company wishes to attract.

Good driver training and retention programs can significantly reduce driver labor costs. Therefore, there is a need right now to formulate viable driver recruitment and retention strategies which will alleviate a future driver shortage problem. Driver recruitment and retention strategies include a sign-on bonus, profit sharing, flexible driving schedules, driver recognition, career advancement opportunities, and reduction in non-driving activities. Creative driver recruitment and retention strategies are increasingly necessary to the continued survival of any trucking company.