Posted on December 10, 2019
It’s common knowledge that new driver turnover rates are high, which compounds the on-going driver shortage problem. A recent survey by Stay Metrics illuminates just how bad turnover rates have become. Stay Metrics surveyed more than 3,200 new drivers and unearthed several insights into driver turnover. In the first 90 days of employment, 35% of new drivers quit. The trend continues for the first year of employment as well as only 36.5% of new drivers stay with their carrier for a full year.
The survey asked drivers questions after their orientation and again several weeks later. Then they checked in to see if the drivers were still with the company at the 90-day mark to draw conclusions between their answers and subsequent turnover. When surveying new drivers, analysts determined the following questions provided the greatest insight into turnover rates. Here are a few examples:
- Did the recruiter accurately describe what it would be like to drive for the carrier?
- In orientation, did the driver learn how much settlement he or she would receive?
- Would the driver recommend this carrier to another driver?
If drivers answered these questions in the affirmative, they were more likely to stay. A strong, common theme is the need for transparency. To retain drivers, recruiters need to make sure they are providing clear and accurate descriptions of the work. Overpromising or hiding the truth of the job will yield unhappy drivers who aren’t likely to last long.
What Drivers Had to Say
The language drivers used during the survey also provided insight into whether they would stay or leave. When looking at the final question, which is a significant indicator of the driver’s loyalty to the company, drivers most often used words like Work” and “Pay”. These words both showed up with frequency regardless of whether the driver would or would not recommend the carrier. What this tells trucking companies is that the work, the pay, and the drivers themselves are of significant importance and influence retention as well as turnover.
This leads back to the first four questions and the common theme of transparency. If drivers are misled about the work or pay, they’re more likely to leave and not recommend the carrier. If recruiters are truthful in their descriptions of what to expect for trips as well as compensation, the driver is more likely to stay and recommend the carrier.
Recruiting and retaining drivers are some of fleets’ greatest challenges. While transparency is a must, there are other things fleets can do to make themselves more competitive and appealing to drivers. Contact the experts at Interstate Motor Carriers to learn more about keeping your trucking company and truck drivers safe.
Posted on July 16, 2019
Compensation planning is an instrumental tool for truck driver recruitment and retention. There are many nuances to ensuring that fair, competitive and attractive compensation plans are in place. Salary adjustments, bonuses, allowances, insurance benefits, and more go into truck driver’s earnings, and fleets need to make sure their plans are financially sound and up to date. Follow these tips to develop a more effective trucker compensation plan:
- Define clear compensation goals. The trucking industry at large is operating on tight profit margins, and compensation has a significant effect on a company’s bottom line. Whether a fleet plans to keep pace with other trucking companies or lead the pack in rates per mile, they will need to incorporate it into their compensation planning and overall budget.
- Plan for allowances and benefits. An employee’s compensation isn’t limited to his or her base pay. Today, benefits and allowances are an important component of that final number. Fleets need to take into consideration the costs of medical care and any allowances such as food compensation that they may provide when creating their compensation plan.
- Keep an eye on the market. The economy changes and influences the industry in several ways. Fleets need to keep up with a dynamic and changing market to retain and recruit. In the current climate, annual reviews of this data may be insufficient to respond to changing market forces.
- Establish performance-based salary adjustments. Increasing base pay on the merit of seniority is an antiquated approach and rewards longevity over efficacy. Better drivers that consistently complete their deliveries on time and undamaged while operating their truck safely should receive bigger pay increases than lower or unsafe performers. Compensation plans should include tiers and a ranking system to easily see where employees land.
- Have clear compensation guidelines. If pay increases are subjective, it will cause issues among employees. Biases and personal relationships shouldn’t have any role in determining changes to pay. Developing a clear outline for when and how pay increases and bonuses occur will help address this potential issue.
- Give accolades to top performers throughout the year. Employee appreciation goes a long way toward retention. While every employee would love to receive a bonus, this isn’t always possible. If a fleet can only afford annual bonuses, they should look for other means to recognize top performers on at least a quarterly basis.
Employee compensation is a multifaceted issue which is crucial for truck driver recruitment and retention. Trucking fleets, both large and small, need to ensure they invest enough time and energy to get the return needed from their compensation plans. Contact the experts at Interstate Motor Carriers to learn how we can help your company make sound decisions while balancing your risk and reducing losses.