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"I am a man of fixed and unbending principles, the first of which is to be flexible at all times."

-- Everett Dirksen (U.S. senator from Illinois, who served in office from 1951 until his death in 1969)

How Mackinnon Transport Turned Around Its Driver Turnover Rate

By Rick Miller

MacKinnon Transport Inc. is very proud to have enjoyed a very favorable, industry leading driver and owner-operator turnover rate ranging between 20% and 30% over the last number of years. In the late 1990s, the company experienced driver and owner-operator turnover in excess of 100%. The operational, financial and potential risk impact of turnover of this magnitude was identified as being a serious potential barrier to future success. As a result, the company refocused on the causes of this turnover and took the initiative to correct the situation through cultural and operational change.

Some of the initiatives associated with the refocus, which continue today, include: 1. a clearly defined and communicated Value Statement; 2. an open door policy; 3. stringent driver and owner-operator hiring criteria (selecting the best of the best); and 4. regular driver and owner-operator performance reviews that encompass all aspects of the relationship, from safety through personal expectations, and everything in between. In addition, the company has initiated various safety, operational and cultural training initiatives aimed at better equipping our drivers and owner-operators to be successful at MacKinnon.

MacKinnon Transport's go-forward business plan is based on and developed through in-depth strategy sessions held twice per year. Driver turnover is one of the key criteria upon which strategy is decided, and it is identified that turnover will continually be a basic cornerstone of our ongoing success.

Retention Overview
MacKinnon Transport firmly believes that retention is a company-wide goal and requires “buy-in” from all departments and all staff to be successful. For this reason, yearly goals and action plans are determined and developed with the input of the whole department. Goals and action plans cannot be dictated -- everyone must "walk the talk."
Goals and action plans are developed using the SMART theory:
S       specific
M      measurable
A       accountable
R       realistic
T       time

Goals and action plans must be achievable.
Ensure you have sufficient resources in place so goal achievement is attainable

  • All practices should be consistent with the company’s values, mission and vision statement.
  • Develop and implement effective policies and procedures.
  • Capitalize on strengths.
  • Find solutions for weaknesses.
  • Develop a retention budget (coffee breaks, lunch, atta-boy certificates).
  • Encourage employees, company drivers and owner-operators to be spokespeople and represent your company.
  • Discuss retention issues at monthly departmental meetings -- keep it fresh in everyone’s minds.
  • Compile and review important data for re-occurring trends (feedback from new hires, exit interviews).

Develop a mentor program

  • This will assist new drivers with their transition to becoming part of your company and help them understand the company culture.
  • All newly hired drivers and owner-operators are assigned a designated company staff member identified as a mentor.
  • Mentors are "go-to people" for drivers; this is a means of contact and information source for new drivers.
  • Mentor provides guidance for issues that may arise for a one-year period.

Discuss expectations

  • It is important for drivers to convey what they expect from a company.
  • It is equally important for drivers to be aware of what a company expects of their drivers.

Open door policy
MacKinnon has an open door policy. Drivers are welcome and encouraged to discuss any issues or concerns not only with management but with their dispatchers and fleet managers as well. It keeps an open line of communication and enables all involved to speak to one another face-to-face.

Provide extras

  • Fresh fruit in the drivers' room.
  • Offer 401K/RRSP plans and educate them to the benefits of these plans.
  • Offer access to your company’s financial experts for individual budgeting.
  • Have a free drivers’ BBQ once per month.
  • Speed your system up by setting timelines to report back to your driving force.
  • Availability of drivers’ clothes washers and dryers, lockers, telephones.
  • Customers who have no regard for your driving force need to be educated.
  • Employee Assistance Programs (EAP) are excellent tools used to divert more intricate and personal issues.
  • Educational scholarships for the children of your driving force.
  • Ensure the drivers' surroundings are clean and neat at all times.
  • E-mail in trucks.
  • EZ Pass.
  • FAST/CSA.
  • Toll transponders.

Develop programs

  • Provide “how to” for owner-operators; MacKinnon subsidizes owner-operators who use the company's third-party service.
  • A sales lead program.
  • A driver recruitment reward program.
  • A driver and owner-operator of the month program.
  • Accident-free driving recognition.
  • External awards.
  • Drivers' suggestion box.
  • List all drivers who successfully completed DOT roadside inspection.
  • Recognize all new births, wedding anniversaries, etc.
  • Recognize longevity with your company.
Rick Miller (rmiller@mackinnontransport.com) is Vice President of Operations at MacKinnon Transport Inc. in Guelph, Ontario, Canada. This article is based on a presentation Miller made during a quarterly conference call of the TCA's Annual Convention Committee.

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