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Volume 1 Issue 3 In
this issue: Our
Sponsors
--------------------------------- Question
of the Day What is the best potential pool of new drivers? •
Ex-Military - They have the discipline required to do the
job. •
Immigrants - They're available, hard-working and hungry for
work •
Former farmers - You can't beat common sense and mechanical
know- how. •
Women - They comprise the largest untapped pool of drivers
in the country. •
All of the above - Are you kidding me? I'll fish in any pool
to find qualified drivers. In our last newsletter, we asked readers the following question: After a solid driving record, what's the first thing you look for in a new driver hire? Here are the results: Personal appearance. If applicants don't take care of themselves, chances are they won't take care of our freight and equipment. 9% Dependability: I don't care what they look like as long as they make their pick-ups and deliveries on time. 10% Independence. Driving over-the-road can be a tough, lonely life, and there's no one around to hold your hand. 8% Common Sense. A little street smarts and common sense can take a driver a long way in this business. 10% Good Attitude. Attitude is everything. 63% Is there a question regarding driver recruitment and retention you would like to ask the trucking industry? Send suggestions to: phorner@otrprotrucker.com --------------------------------- Quote
of the Day Management
is doing things right; leadership is doing the right things. -- Peter F. Drucker --------------------------------- Contact:
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The
driver shortage problem is almost as old as the trucking industry itself.
Although the shortage has ebbed and flowed, back and forth, over the years, it
has never gone away, even during the worst of economic times. More recently,
with freight on the rise and the economy apparently doing better (depending on
the day of the week and with whom you talk), the issue of a chronic driver
shortage has once again taken center stage. Inside
Trucking has one goal:
to help carriers improve their retention rates and recruiting efforts by
presenting useful information and suggestions culled from a variety of
sources, including industry consultants, company officers, other publications,
trucking associations and those out on the front line of the retention issue
-- recruiting and safety directors. While
everyone involved in the trucking industry has their own opinion on the topic
of retention and recruiting -- and you can expect us to express our own on
occasion (see "My Point" elsewhere in this issue) -- we want to hear
from you, the reader. What
problems would you like to get out on the table and have us address in Inside
Trucking? What types of surveys would you like us to take? What
questions would you like to see asked in our "Question of the Day"
feature? Perhaps you have a success story you want to share. Perhaps you have
a "best practice" program that has reduced your turnover rate.
Perhaps there's just something you want to get off your chest regarding the
trucking industry. Whatever it is, we want to hear about it. Send your ideas
to our newsletter editor, Pete Horner: phorner@otrprotrucker.com. We're
all in this together, and with your help, we can start turning the industry's
high turnover rate around. --
Marvin Shefsky, Publisher/CEO
By
Greg Mechler
The
effectiveness of front line operations management is one of the critical
items necessary to be a successful carrier, especially when it comes to
driver retention. The profit impact of a highly effective 40-driver board
compared to a highly ineffective one can be as high as $500,000 per year
when you consider the cost of turnover, revenue (and miles), safety, miles
per gallon, maintenance, customer service and other costs. Our
work and research with carriers such as Boyd Bros., American Central, Jim
Palmer Trucking and many others has led us to the conclusion that there are
well-defined skills, behaviors and best practices that separate high
operations performers from low performers. Implementing a "best
practices" approach to operations management will literally unleash the
performance potential of your operations staff. The
development of a high-performance operations function using a best practices
approach requires a series of focused activities in order to create a
customized program for the unique characteristics of each company. Position
Profile.
A well-written job profile provides a clear picture of the performance
outcomes required in the job. This is very beneficial for both new and
veteran fleet managers. They know what is expected and how it will be
measured. Skills
Analysis.
We have found that there are several behaviors or activities that the high
performers use to get superior results, but the low performers do not. For
example, in our work with a truckload carrier with 24 fleet managers we
found that the high performers did the following: *
Had a defined end-of-day and start-of-day routine *
Set high goals for their drivers and held them accountable *
Monitored performance and status every five to10 minutes during the day *
Confronted poor performance immediately *
Coached their drivers on how to improve performance *
Sent brief, business-focused Qualcomm messages *
Focused on results Specific
skill/competency sets include basic business acumen, computer keyboard
skills, freight flow knowledge, ability to quickly access information in the
computer, administrative capability, scheduling, communication and
relationship skills, and leadership skills. An
excellent way to expand the benefits you get from the capabilities of your
high performers is to set up the following practice: Form
Best Practice Teams.
Create a team of three to five fleet managers consisting of a cross section
of the staff. This team will: 1) prioritize the problem areas that require
best practices, 2) develop best practice procedures (i.e., a procedure for
the "start of day routine") and, 3) train best practices. We also
recommend that the team members rotate every six months in order to get the
buy-in from all fleet managers. Rank
Performance Issues.
The best practices team starts with item No. 1 and creates a procedure. They
then implement the procedure through a series of peer-to-peer training
sessions. Then they continue working the items in priority order. The
process of defining the skills, abilities and best practices needed to be a
high-performance fleet manager results in a documented and sequential set of
skills that fleet managers must have or attain. This documented skills map
is extremely useful for the following purposes: *
Evaluation and selection of new fleet managers *
Training for new and existing fleet managers *
Performance management *
Coaching *
Incentive compensation It
has been our experience that when this type of program is implemented
performance improves dramatically. Operating results improve (all other
things being equal), driver turnover goes down and morale goes up. A
best practices program provides an ongoing management system for solving
problems and making decisions at the lowest possible level. It brings out
the best in people and aligns accountability for results exactly where it
needs to be. Greg
Mechler has more than 30 years of transportation management and consulting
experience. Greg began his career in 1973 as a driver manager with Schneider
Transport. Over the next 17 years he worked in numerous transportation
management roles including driver manager, driver and contractor recruiter,
safety director, general manager, vice president of operations and
president/CEO. Those experiences involved careers with four motor carriers,
including Schneider National, Inc., C. A. White, Fleetline, Inc. and Venture
Transport, Inc. Greg
founded GPM Management Solutions in 1991 and then the Human Advantage, Inc.
(www.thehumanadvantage.com)
in 1994 to provide a variety of organizational consulting services to
transportation companies. Offerings include: strategic planning workshops,
operations performance systems, driver recruitment strategies and driver
retention processes. Greg
is an active member of the American Truck Association, a member of the Board
of Directors of the Truckload Carriers Association and a member of the Texas
Motor Transportation Association. The Human Advantage, Inc. has performed
several in-depth studies of effective operations performance factors at
major truckload carriers. Many of the concepts discovered in these studies
are contained in the "Daily Dispatch Challenge Manual." Greg
holds a B.S. in Business from the University of Minnesota and an M.S. in
Organizational Systems from the University of Kansas.
My Point 
By Marvin Shefsky Every
true professional driver knows that life on the road teaches you far more
than you can ever learn in the classroom, and that the minute a driver
thinks he (or she) knows everything there is to know about this industry,
it's probably time for that driver to call it a career. As
the publisher of Over the Road and Pro
Trucker magazines for 25 years, as a driver recruiter before that
and now as the publisher of Inside
Trucking online newsletter, I find I learn something new every day
about the art and science of driver recruitment and retention. With that in
mind, I attended the TCA's annual meeting in Las Vegas earlier this year. I
was particularly interested in a couple of workshops on the subject of
recruitment and retention that drew standing-room-only crowds. Both
workshops were packed with company owners and other top officers from some
of the largest carriers in the country. John
Christner, founder and CEO of John Christner Trucking, and Patrick O'Malley,
vice president and safety officer for Landstar System, led the workshops and
shared their thoughts on the critical issues of driver recruitment and
retention. One
message came through loud and clear: The shortage of "good"
drivers is real, it's costing carriers big bucks, and it's time for the
trucking industry to work together to solve the problem. Why would people
like John Christner, Patrick O'Malley and other top-ranking officers want to
share the secrets to their company's success in the recruiting and retention
war with their competitors? Because they know that if they can slow down
driver turnover industry-wide, that would slow down turnover within their
own fleet. As
it sits now, too many carriers are spending too much money stealing good
drivers from each other. Someone, it seems, is always upping the ante,
forcing other carriers to match them or face losing the ongoing
recruitment/retention struggle. In our opinion, raising driver pay is a good
thing; it attracts more and better people to the industry. Carriers should
also be focusing their efforts on retaining the drivers they have, and
turning their average drivers into good drivers, rather than raiding other
companies. How
do you produce better, more loyal drivers AND reduce your turnover rates? By
creating a company-wide "retention culture" that starts at the
very top and filters its way all the way down through every department,
policy and employee. Shortly
after the TCA convention, I had the pleasure of attending a safety awards
banquet in Wisconsin hosted by Marten Transport to honor its million-mile
drivers. There are dozens of million-milers and two-million milers at Marten, and, judging from the
number of times he stopped to chat at the banquet, company owner Randy
Marten appears to personally know each and every one of them. It's clear
that Marten Transport has a strong retention culture that starts at the top,
a culture that Randy Marten has obviously spent a long time cultivating. No
wonder Marten Transport has an enviable turnover rate and legions of loyal
drivers who have been with the company for decades. Helping
your organization build a company-wide retention culture is what Inside
Trucking is all about, but we can't do it alone. We need your help.
We need your suggestions. We need your feedback. If you have a success
story, let us know. If you have some tips on improving retention rates, send
them along. If you have a problem that needs addressing, let's address it as
an industry together. As we said at the beginning, even though we've been in
this business for a long time, we know we don't have all the answers. No one
does. But if we all share our ideas and best practices, perhaps we can
finally close or at least slow down the revolving door of drivers. Since
we're all in this together, it seems we ought to take an industry-wide
approach to an industry-wide problem. Marvin Shefsky is the publisher of Inside Trucking, as well as Over the Road and Pro Trucker magazines.
A
recent article in Trailer/Body
Builders suggests the ranks of owner-operators are diminishing, but
the ones with staying power are savvier than ever. “Most
drivers recognize that if they want to work, they can go anywhere today and
make a living,” says one operations manager for a truckload carrier.
“When they're making money and things are going well, they're usually less
inclined to switch. But today we're seeing a much greater focus on issues
outside of pay and miles.” According
to Dale Corum of Mercer Transportation, one of the first questions
independent drivers ask carriers is whether they have a fuel surcharge and
whether they pass it on to owner-operators. Corum says his company passes on
the entire fuel surcharge to its independent drivers and believes this is
one reason turnover at Mercer is a mere 23.1 percent, compared to an
industry average of 136 percent for large fleets and 102 percent for small
fleets. As
far as equipment goes, owner-operators are requesting financing and
equipment management options. “Owner-operators are looking at maintenance
plans, financing options and especially resale value,” says Todd Acker of
Peterbilt Motors Co. “They're taking a much more business-focused approach
to their truck purchases.” The
president and CEO of Freightliner says there is a trend for fleets to
outsource the more specialized transportation tasks to owner-operators.
Rainer Schmueckle says, “Shippers as well are looking for smaller, more
specialized providers that can handle specific transportation needs. That's
putting more emphasis on the owner-operator market.” While
some carriers try to lure drivers with new programs like trailer leasing
programs, others say it's the tried-and-true that gets them to stick around.
“We're looking for business partners – people who will treat us like we
treat them,” says Mercer's Corum.
Survey: What Fleet Managers Have to Say on Key Issues Truck
drivers campaigning for a hike in per-mile pay for driving through
routes in congested areas may find some relief this year. In an online
survey of fleet managers conducted for Rand McNally, more than 20
percent said they plan to increase this pay. The
survey of 424 trucking professionals was conducted by The Litchfield
Group, a Marietta, GA independent research firm, and covered several
topics of concern to the transportation and logistics industry. "As
a supplier of advanced routing and mileage solutions and publisher of
the industry's most widely used truckers' atlas, we're keenly interested
in the issues fleet managers and drivers face today," says Bernie
Hockswender, director of sales for Rand McNally's transportation
division.
"Changes to approaches in driver pay and choices involving
the most effective methods to communicate and manage delivery are
serious issues that our customers must grapple with every day." The
news was not all good for drivers. While 50 percent of fleet managers
said trucker requests for higher pay were as common in 2004 as they were
in 2003, 46 percent of the managers do not plan increases in 2005. In
a clear sign of how technology has transformed the trucking industry, 47
percent of managers surveyed said drivers used onboard tracking systems
to warn them of possible late arrivals, while 53 percent of drivers use
cell phones to alert managers of delivery delays. Nine percent of
respondents said their drivers use pay phones, and just 5 percent of
those surveyed said e-mail was used to alert them of late arrivals. (The
total exceeds 100 percent because the question permitted multiple
responses.) The
survey also asked trucking professionals to rate the importance of
services available to drivers at truck stops.
Despite technology that is now available at many stations, more
than half (55 percent) of those responding consider secure overnight
parking as the most important feature. Maintenance and driver rest
facilities came in second and third with 12 percent and 10 percent,
respectively. Internet
access was deemed the least important service by 36 percent of fleet
managers. Truck and trailer wash facilities was rated as least important
by 24 percent of respondents.
Inside
Trucking
asked over-the-road professionals to name the one issue facing
the trucking industry today that concerns them the most. Here
are some of their responses:
"That's a multiple answer. Mainly fuel and freight rates. We're lucky. We get pretty good fuel surcharges. Without that we probably wouldn't have our own truck right now. The answer is, you have to raise the freight rates. You can't haul cheap freight and afford to cover all the expenses. It just doesn't work." -- Ron "Snuffy" Smith, 52, Massillon, OH (Professional driving experience: 28 years)
"Fuel prices. The cost of fuel is the biggest thing right now. I'm a company driver, but it impacts my boss. If it hurts him, it's going to hurt me. The way the cost of oil has gotten so high it's going to hurt everybody. Cars. Trucks. Farmers. I've got a farmer friend and it's really hurting him." -- Gail Glass, 58, Harrisburg, IL (Professional driving experience: 40 years)
"Fuel costs. We pass the fuel surcharges along to our shippers and receivers, but it still doesn't cover the increase in fuel costs. As an owner-operator, it takes money out of my pocket. The impact on me means I have to run more miles and run harder just to stay even because my expenses are going up all the time." -- Billy Arnold, 30, Sedalia, MO (Professional driving experience: 12 years)
"As a company driver, I'm most concerned about how things are being regulated and what's being done about them. Hours of service, for example. There's a lot of talk, but no one seems to know what they should do. My thought is they are not looking at the real root of the problem. The real problem is drivers are driving tired because they're being pressured into trying to do more than they are physically capable of doing." -- Ron Stevens, 37, Philadelphia, PA (Professional driving experience: 12 years)
Five
independent contractors from Fikes Truck Line, a 100-percent independent
contractor flatbed company based in Hope, AR, recently achieved the
distinction of Certified Master Contractor (CMC). Fikes is known for
providing its contractors excellent programs to increase their success
as business owners. Presented
by The Alliance, a financial planning and consulting firm exclusively
serving independent contractors, the program is a two-day workshop
featuring a packed agenda that provides the knowledge and skills
independent contractors need to create a more profitable operation.
According to Jack Mulligan of The Alliance, the program covers four
major areas: 1. operations, 2. record keeping and taxes, 3. cost per
mile, and 4.financial planning.
“These
Fikes contractors learned about everything from equipment financing,
contracts and insurance to income taxes, fuel taxes and 2290 taxes,”
Mulligan says. “We also covered controlling costs, investing,
retirement accounts, financial plans and lots of other important
topics.” Fikes
recommends the program to help ensure the profitability of its
contractors.
Max Campbell, Fikes' director of recruiting and contractor
services, says it’s all part of partnering for success. “Clearly,
the success of our contractors impacts the success of the company and
our customers,” he says.
“If our contractors aren’t making money, supporting their
families and enjoying who they work with, they’ll leave. We’re very
proud of the contractors who completed the CMC program. It’s just one
more way Fikes supports our contractors to do as well as they can in
their businesses.” The
five Fikes contractors who completed the course can now display the CMC
decal on their truck and use the designation to market their services. For
more information on the Certified Master Contractor course, visit
www.43truck.com.
Improve Your Profitability By 'Branding' Your Company The
Truckload Carriers Association will hold an audio conference/webcast
from 12-1:30 p.m. (ET) on May 26. The subject of the audio conference:
"Improve Your Profitability by 'Branding' Your Company." Establishing
or revitalizing a clear purpose that the brand (your company) is working
towards builds a strong customer relationship and loyalty to the brand
(your company). Learn to clearly define and package the brand value into
communicable messages that set forth a clear direction for your
employees and customers to follow. By doing this, your employees will be
motivated to put more time and effort into making your company a
success. Learn
the answers to these questions: •
What is branding? •
Why brand? •
What are the results of successful branding? •
What is driver-focused branding? 1.
External branding (magazine, internet, radio, and more) 2.
Internal branding (referral programs, retention programs and more) 3.
Success stories of branding to drivers •
What is shipper/potential customer focused branding? 1.
Marketing campaigns (collateral materials, corporate gifts and more) 2.
Public relations (promoting safety awards, employee achievements, and
more) •
How do you get company buy-in to the branding message? 1.
Leadership 2.
Internal Staff •
How do you get the most out of your branding dollar? •
What are the 10 Commandments for branding in transportation? For
more information, visit. http://www.truckload.org/events/index.htm#brand
Inside Trucking is freely distributed by the publishers of Over the Road and Pro Trucker magazines as a service to help our clients strengthen their driver recruiting and retention efforts. |
