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Wrecking retention: Mistakes that could send your drivers packing

They’re the lifeblood of trucking.  Without truck drivers, our industry would crumble.  Trouble is, good ones are hard to find. 

 

Even as unemployment hovers at just over nine percent, thousands of big rigs are sitting idle for lack of a driver.  FTR Associates estimates the U.S. trucking industry is short about 150,000 drivers right now.  They predict that number will double to 300,000 within a year.  Why?

 

  • Safety regulations.  With CSA 2010, fleets are getting stricter about who they hire because of increased safety concerns.  They’re being more careful about who they hire, and getting rid of problem drivers, which is shrinking the driver pool.
  • Attrition.  Older drivers are retiring and younger people are showing little interest in a truck driving career.  The number of new drivers isn’t expected to keep pace with increased freight demands.
  • The economy.  The recession has made it difficult for owner-operators to get loans to buy trucks, putting many truckers out of business
  • HOS.  Regulations curbing drivers' work hours mean companies must have more employees.
  • Cost.  Owner operators are paying more for fuel.  With added regulations on fuel and equipment, they’re saddled with more costs.  “They can’t afford it,” said Nedrah Weaver of PEI, Inc., a carrier based near Atlanta.  “They’re throwing up their hands and saying they can’t do it anymore.”

Weaver said finding qualified drivers is harder than ever.  For everyone 100 applicants, she might get one she can settle for.  That’s because the driver population is growing at less than one percent a year, while freight's growing at closer to four percent, according to some analysts.

 

Driver churn on the rise

It has become so difficult to fill driver jobs that pay has begun rising and companies are pursuing each other's drivers. The turnover rate for drivers at large truckload fleets rose to 75 percent in the first quarter, compared with 39 percent a year earlier, the ATA said.  At smaller companies, the turnover is about 50 percent.

 

How to wreck retention

Given the difficulty in finding and hiring quality drivers, companies are focused on keeping the good ones they’ve got.  But it’s not that easy.  Here are some mistakes to avoid if you want to keep from going to the hiring well more often than you’d like.

 

 

  1. Scrimp on pay.  Let’s face it, when drivers leave, they usually follow the money.  Experienced drivers with good credentials have become a hot commodity, making themselves available to the highest bidder.  Carriers are finding they must pay more to recruit and retain drivers.

Unfortunately, this makes it tough on both carriers and shippers. And most companies agree, there’s a fine line between affordable driver pay and an acceptable shipping rate.

 

“We’re under pressure through regulations to improve the quality of our driver fleet,” said Chad Peltier, President of J.I.T Distributing in Houston. “What are our options?  We have to pay well enough to keep good, qualified drivers.  But that’s difficult when the economy has been tough on our customers and has affected the rates they’re capable of paying.”

 

Brian Fielkow, president of Houston-based carrier, Jetco, agrees.  “We have to pay a fair wage to attract quality drivers. We’re going to have an unprecedented driver shortage in this country.  Shippers are going to have to understand that truckload rates are affected by more than just fuel.”

 

Peltier says the industry still hasn’t figured out the balance of fair driver pay, the driver shortage and proper shipping rates. “It’ll be a house of cards if we let it get away from us.”

 

Weaver adds that she’s seeing shipping rates that can’t sustain acceptable driver pay.  “Some of the rates are ridiculous,” she said.  “Someone offered us $700 for a 1,220-mile load.  You can’t even pay for fuel with that.  How’s an owner-op going to stay in business at that rate?

  1. Think short-term.  You need to hire drivers quickly, so you attract them with bold promises.

Make unsustainable promises and you’ll drive away the good drivers you so carefully lured to your company.  It doesn’t matter how big you are.  Dishonesty is a major factor in drivers seeking other employment. This includes bonuses promised but nearly impossible to pay.  Pay scales or mileage promised and not delivered. Benefits promised and either not given or drastically reduced after a period of time.  Not getting drivers home when or as often as promised. 

  1. Treat drivers anonymously. Whether drivers are in or out of their truck, on the road or at the terminals, it’s important to treat them professionally. 

“Don’t treat them like a number,” said Fielkow.  “Without drivers, what would we have?  They’re by themselves most of the time, so when they’re at the terminals or wherever, it’s important they be treated as professionals.  Because that’s what they are.”

  1. Stop listening.  A critical mistake: not listening to drivers.  Sometimes they have tips for improving the business, concerns or other observations.

“When no one wants to talk to them, they’ll leave, said Peltier. “You have to be receptive to their feedback and concerns.  You may not be able to do anything about it immediately.  But if you don’t give them a chance to air their concerns, then it shows you don’t care. 

 

Close your door on the driver’s voice, and your drivers may tell you goodbye for good.  It’s also important to listen to what good drivers need in terms of work schedules, lanes and more.

  1. Keep them waiting.  Shippers can play a part by make their freight more driver-friendly.  Attention to proper loading, adjusting pick-up or delivery times to better accommodate HOS regulations and managing driver wait time are more important than ever. 

Shippers should be aware of the downstream impact of their freight on drivers.  Ultimately, an unhappy driver may find another career.  And a bursting driving shortage can only drive up shippers’ rates more.

 

“When you schedule a delivery time for 7:30 and can’t unload until 1:30, that’s a big problem,” said Weaver.  “That’s terrible for our drivers.  The industry has to do a better job, or we’ll keep losing them.”

Retention best practices

 

In addition to mistakes to avoid, here are a few tips that may endear your company to good drivers:

 

  • Provide a good office.  Some drivers spend 18-22 hours per day in their truck, all alone.  That’s their working office.  They take pride in their truck.  Provide them nice, safe, quality equipment to operate and they’re more likely to appreciate your company.

  • Establish an environment focused on drivers.  Companies that show they have their drivers’ best interests at heart score more points for retention.  Jetco developed a D2P—Driving 2 Perfection—program that works well for its drivers.

“It defines who we are,” said Fielkow.  “It focuses on safety.  We aren’t going to force drivers to do something unsafe or uncalled for.  We have a disciplined rotation of equipment so they’re driving trucks new trucks.  We operate equipment that is in compliance with all regulations.  We want to make sure the driver is protected.

 

“The PSP scores (CSA 2010) are a game-changer now for the driver.  It affects their employability, and we want to help protect that for them.”

 

Fielkow’s drivers also talk about the family environment at Jetco.  He attributes that to strong education and getting drivers involved with new programs.

 

“We’ve been in business for 36 years,” he added.  “Being a truck driver for us is not for everyone.  Our culture is good for those who are Driving 2 Perfection.” 

  • Be fair and patient.  “There are lots of regulations and restrictions on carriers and drivers,” said Weaver.  “Many drivers don’t understand CSA and how the new penalties can affect them.  I’ve found if you can be patient and help educate them, they’ll appreciate your efforts.”

  • Get driver buy-in.  When Jetco went to 100% GPS tracking in their trucks, the company saw a great productivity opportunity.  However, they feared driver reaction.  To manage the transition, Jetco involved some of the drivers early on through the trial process.

“We included opinion leaders, many of whom were skeptical about it,” Fielkow said.  “Many of those who were skeptical became our greatest salespeople for it.  That helped our whole transition.”

Keeping good drivers will only get harder in the months ahead.  Now is the time to make sure you’re taking the proper steps to strengthen your retention program.  Otherwise, prepare to start sifting through driver applications.

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