Ahern Advisory Editorial: Driver Retention

(prHWY.com) February 12, 2013 - Phoenix, AZ -- Recently, I did an interview for one of the transportation publications, in reference to driver retention. As I explained to the reporter;

* The questions she was asking has no immediate resolution;
* The retaining of drivers and the recruitment of drivers is an art that needs to be constantly redefined, and;
* Driver recruitment starts at the top - not at the bottom.

I have stated in numerous news articles, that I am the first to admit, that I am not the smartest "spark plug in the engine". There are many people who are much smarter than I; there are many people who have been in business longer than me, but;

* There is one thing I do offer, and that is 40 years of transportation experience, I am able to "touch" and interact with the most successful owners of trucking/logistics companies in the country;
* That, alone, is something that is very difficult to quantify.

Therefore, based upon "my" experience and "my" interaction with successful trucking companies, the dynamics of driver recruitment and driver retention have changed dramatically in the last 9 to 12 months. Additionally, it is going to continue to change because drivers are in demand and the demand exceeds the supply.

Recently, there was an article in one of the trade publications that stated;

* The driver shortage for 2013 will be approximately 80,000 drivers, and;
* By 2018, it will be 2 million drivers.

The magic question becomes, how can you keep good drivers? Why do some companies have a driver turnover ratio of 50% or 60%, while the industry, in general,has a driver turnover ratio of over 100%? What I advise my clients to do is start with one basic philosophy:

* Drivers need to know that you care!

That seems like a given, but you need to do more than just say it, you need to believe it; you need to demonstrate it; you need to follow through with it. So what is driver care? Driver care is letting that driver and that driver's family know that you are appreciative of his or her efforts. How many times have you called a driver's family and said, I want you to know how much we appreciate you allowing your spouse to work for our company and the sacrifices you and your family have made to allow your spouse to be on the road? Thank you!

How many times have you sent a thank you note or gift certificate to the driver's family acknowledging that their husband or wife is a very important part of your business? How many times have you sent an email or a text, or given a gift certificate to the driver and said, you are appreciated? Thank you!

My point, this is the beginning of "the process", but certainly not the end. It's important to understand that;

* Drivers leave relationships;
* Drivers do not leave companies, and;
* If a driver leaves a relationship, it is for a specific reason.

One of the most important things that all managers or owners of a trucking company must do is conduct "appropriate" exit interviews: Why did you leave? What was wrong? What did we do wrong? Too many times we become so defensive and our initial reaction is: the driver is always complaining, the driver doesn't care about us, the driver, the driver, the driver. The reality of the situation is that drivers do have some peculiarities, but a driver should be treated as any other profit center, because that is exactly what they are.

* You can have all the iron in the world, but;
* If it is parked up against a fence because you don't have a driver, then what good is the iron? And;
* If a driver is an asset; you need to treat that driver with respect and courtesy, and you have to understand that you must be an effective listener.

A driver that is "otr" has one of the most difficult jobs in the country. They are not appreciated; they are not highly compensated for the amount of grief and aggravation they have to go through; they have to endure all types of challenges; such as: weather, irate shippers, traffic jams, and the list goes on and on.

Recently, one of my clients told me that the most fundamental driver problem he had was his Dispatch Department despise his drivers; as I started thinking about that, I thought what a peculiar statement to make. How can Dispatch not like drivers? A Dispatcher's primary responsibility is to move the freight; if he/she cannot move the freight, they are un-employed. What my client was telling me, (and said), if you have unhappy employees and that don't like coming to work, their attitude is going to permeate down to the drivers. So, rule number one:

Treat your employees with respect; treat them the way you want to be treated and appreciate your employees. If your employees like coming to the office, then their positive attitude is going to permeate to the drivers.

Dispatch and Operations are the keys to beginning the process of stabilizing and reducing driver turnover. If a driver has a particular problem and a driver needs to get home, don't reroute that driver in the opposite direction. Dispatch needs to let drivers know that Dispatch appreciates them. An operation needs to let Dispatchers know that driver appreciation is part of their job function; and Operations needs to appreciate drivers. Most importantly, appreciation starts at the top. If you are an Owner of a trucking company, tell your drivers; and show your drivers that you genuinely care about them.

Many times a driver will leave because the grass appears to be greener on the other side. However, the reality of the situation is, the grass isn't greener on the other side and in many instances, a driver leaves because of an emotional dispute and then recognizes, after the fact, that he or she was better off with their previous employer. Unfortunately, the driver's ego gets in the way and doesn't call the company (in most instances) and unfortunately driver recruitment doesn't focus on lost drivers. Sometimes you may go through the motions but you are not consistent; therefore, it is crucial to recognize:

* Every trucking company should have a file of every driver, length of employment, tenure, etc., and;
* Every trucking company should continually, (at least once a month), reach out to existing or terminated drivers by email, text and telephone and ask them how they are doing. Ask them if they are happy, ask them if they would reconsider coming back to work for you, and;
* You need to take that same approach with their families. If a driver leaves and you know that it was your fault, then "step up to the plate" and "accept" responsibility; let the driver's family know that you care; let the family know that you would like another chance; let the family know that you are a genuine person.

In my practice, I can categorically state that these fundamentals are not practiced on a consistent basis by every single trucking company in the United States. Since I can't show preference, I won't list some clients whose drivers have been with them 20 and 30 years. I have clients whose driver turnover ratio is 60% and under; and there is a reason for that; the reasons are as outlined above.

According to the American Trucking Association, the annualized driver turnover rate at large truckload carriers went past 100% in the second quarter, rising above that percentage figure for the first time in more than 4 years. To me, this is not a milestone that we want to celebrate.A 100% turnover rate means truckload carriers need to replace the equivalent of their entire driver pool, each year, just to maintain employment and capacity at the same level.

To put it in simplistic terms, if recruiting one driver cost $5K (on an average), a company with 500 drivers would pay $2.5MM a year. Think about that - that is money that is going out the door; it is lost money. The obvious question is: if you implemented all of the above, could you improve your driver retention? Yes! If;

* The drivers obtain satisfaction from a sense of achievement and recognition; there is a consistency in their work; they are able to get them home on a more frequent basis; the driver believes that there is a genuine respect from Management, and; the driver receives
company support while on the road, as well as; a good level of pay and benefits.

There was a recent article written by the Vertical Alliance Group, in which they stated that Dispatchers and Fleet Managers of Operations have been found as a key area in driver retention. If you remember what I stated earlier, if a Dispatcher or Fleet Manager is not happy, and they represent the company, and that Fleet Manager disrespects the driver, that Fleet Manager is saying Management doesn't care. The bottom line is that the behavior of Dispatchers is a key influence on a driver's satisfaction and the likelihood of remaining with a particular carrier.

In closing, if you are an owner of a trucking company, it is imperative that you develop a "culture" in your company where employees like to come to work. As an owner, you need to reevaluate the number of drivers that can be effectively managed by a single Fleet Manager, and
you need to focus on training your Dispatchers to incorporate a human factor, to better understand both the driver's challenges.

There was a survey conducted where drivers were asked what makes a company safe? The following indicators were mentioned:

* The quality and safety of training programs; the level of respect for in compliance with regulations and policy governing operations; maintenance of clean facilities and equipment in good working order; recognition of drivers with good safety attitudes and driving
records, and most importantly; respect, respect, respect, respect.

In my next newsletter, I will discuss incentive programs that can assist in driver retention.

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