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Cut Costs, Grow Fleet Through Retention
By Frank Stokes (left) and Tres Parker
Freight rates and driver wages are up, yet there is a driver shortage across the country. Truck companies across America are looking for good, safe, quality drivers. The cost of hiring a single driver is estimated to be between $5,000 and $8,000. Turnover rates for the industry are averaging 120 percent annually and climbing. So how does a truck company reduce the costs of hiring a driver and grow its fleet? You focus on retaining the drivers that you have now.
Anything worth doing and doing right takes time, and it will take time to see the fruits of your labor. There is no magic solution to solving the driver turnover issue; it, too, will take time, and will not be reduced overnight. But at Boyd Brothers Transportation, we believe we are on the right track. Over the last two to three years, we have focused on some areas that have brought us some success and reasons to celebrate. Our turnover rate has reduced 40 percent from 120 percent annualized to 80 percent.
Is there an area of a truck company that does not have any direct or indirect influence on driver retention? The answer is none; safety, payroll, maintenance, sales, management information systems and operations all have influence on driver turnover. That's why at Boyd Brothers, to have the success we have, it has been a total team effort. Everyone in our organization has been focused and committed to making decisions and executing them in manners that are best for Boyd Brothers and driver retention. It's a cultural thing, and it starts with our mission statement: "Boyd Brothers Transportation will lead the trucking industry by providing the absolute best service."
We will:
* Operate safely and legally.
* Value, respect and trust our people.
* Do what we say we will do.
* Require high standards.
* Continuously improve and train our people.
* Do more with less.
* Communicate, communicate, communicate.
* Work hard, work smart and enjoy life.
Within the departments at Boyd, it starts with recruiting. To help reduce our turnover, we have to hire the right driver to start with. This means we have to screen the drivers very well, checking their MVRs, verifying past work experiences and qualifications, and conducting one-on-one personal interviews with the drivers. The driver, of course, must pass the pre-employment drug test and road test. Based on the results of the above, we will make the decision whether or not to hire the driver; we will not jeopardize safety or put ourselves in a position for possible future litigation by hiring an unsafe, unqualified driver.
In This Issue:
My Point: High-Tech vs. Straight Talk
Marvin Shefsky
- Publisher
"What we have here is a failure to communicate." -- Captain, Road Prison 36 (played by Strother Martin in the movie "Cool Hand Luke")
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Increasing Retention by Creating Loyal Drivers
By Ray Duval
So, you have advertised, recruited and trained your new drivers. The sales pitch from recruiting has been made to the drivers and you have done the required background checks.
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Driver Sound Off
Opinions and views of professional drivers from around the country.
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Skills Needed for Top Recruiters
In order to recruit and retain drivers in today's competitive market, top recruiters must be at the top of their game. To be successful, they must be able to sell their company to the best drivers, since those drivers will be able to work for anybody in the trucking industry.
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Are You Recruiting or Marketing?
By Sundy J. Muse-Morton
It is no secret the trucking industry is suffering from a severe shortage of professional drivers. According to the American Trucking Association, the industry presently has a shortage of 20,000 drivers and this number could be as high as 54,000 by the end of 2006.
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Insurance: One More Reason to Hire Good Drivers
Keeping insurance premiums down is a constant focus for small trucking companies. One Iowa transportation specialist says hiring good drivers makes all the difference.
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Building Teamwork While Building Bikes
At a time when companies are becoming increasingly impersonal in order to cut costs, and employees interact with each other less than ever before, Tucson-based Horizon Moving Systems is breaking the mold and working to improve positive interaction among employees.
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Quote of the Day
"Pay your people the least possible and you'll get from them the same."
-- Malcolm S. Forbes
To learn more about Over the Road and Pro Trucker and how to put our team to work on your driver recruitment advertising needs, call our advertising sales team at 800-878-0311 or go to: www.otrprotrucker.com.
