A recent survey conducted by Aviva found that traditional benefits aren’t enough to retain drivers. The company must do more to encourage long-term loyalty. Employees who feel appreciated and respected will stay longer. Giving drivers a voice and an anonymous feedback channel is one way to accomplish this. Google Forms, for example, make this process simple.
Companies must also ensure their drivers have an enjoyable work environment and pay competitively. A happy driver is unlikely to move to a competitor and will attract other drivers as well. This is an extremely important issue for trucking companies and they need to make every effort to improve retention. A happy driver is a better employee and a safer employee. According to Gallup, high-engaged employees tend to stick around for a longer period of time.
Increasing retention pay is a key way to retain truck drivers. According to FreightWaves, the average cost of driver turnover is $15,728 per driver. Retention pay for truck drivers can save fleet managers thousands of dollars, especially if it’s coupled with performance bonuses.
How is Driver Retention Rate Calculated?
Among the most common reasons a driver quits a company is going to another one. Many times, a driver’s departure is not due to a company’s policy but rather because the driver feels unfulfilled. For example, a driver may leave his current carrier for a larger company with a higher sign-on bonus and more money. Six months later, he can do the same thing again. This is called churn and it is one of the main causes of high turnover rates in a tight labor market.
ATA has developed a turnover metric to measure driver turnover. This metric captures churn in the industry and excludes attrition from other fleets. Exits and retirements only make up a small part of turnover. Drivers typically move from one fleet to another for a number of reasons, including safety concerns, pay, and culture.
Driver turnover is a major issue for the North American trucking industry. Historically, the industry has had a low retention rate. In fact, the average turnover rate for large truckload carriers was 92% in Q3 of 2020. For smaller carriers, the average turnover rate was 74%.
How Do You Increase Your Driving Retention?
Retaining good drivers is an important part of running a successful transportation company. Replacing a driver can cost up to $12,000, and the pool of available drivers is rapidly shrinking. Additionally, new regulations have curtailed the number of qualified drivers. This makes it even more important to find ways to retain existing drivers. Fortunately, there are several effective strategies for achieving this goal.
One of the most effective ways to retain drivers is to invest in their training and development. By offering CDL training or other training opportunities, you can not only retain your existing drivers, but also attract new ones. Besides, investing in drivers will save you time and money in the long run. In addition to CDL training, drivers can also benefit from free online training programs. There are even courses available to teach drivers OSHA safety and DOT compliance basics. Additionally, you can reward your drivers for completing their training.
Driver retention is a critical component of successful transportation companies. Creating a culture that is supportive, transparent, and respectful is essential to success. The best way to foster relationships with your drivers is to listen to their needs and concerns and act on them. Drivers want to feel like they’re part of a team and are important to the company.
How Do I Retain My Drivers?
One of the best ways to retain truck drivers is to make them feel valued and appreciated. One way to do this is to create a mentorship program for new hires, so they can learn from more experienced employees. Another good idea is to prioritize work-life balance. Ask your drivers how they feel about their jobs, and be understanding about their need for time off. Also, make sure you give proper notice about work schedules. While truck drivers often work long hours, they still need to be treated with respect.
Another effective way to retain drivers is to offer appropriate compensation. The trucking industry is a competitive industry, and it costs a lot of money to recruit new drivers. By focusing on retention, you can reduce your overall expenses and maintain a positive work environment. The demands on truck drivers are growing every year. In fact, 72.5 percent of all freight in the United States is transported by trucks. Yet, there is a lack of truck drivers available to meet these demands. Furthermore, the current drivers rarely stay with a company for long.
The process of recruitment and retention can vary by industry. Fortunately, there are many ways to attract good people. A well-run trucking company should use a variety of recruiting channels to find the right people. A good approach is to reach out to drivers where they spend time, and speak their language. Remember that drivers can quickly notice a bad recruiting experience. One way to do this is to incorporate humor into your job advertisements.
What is a Good Employee Retention Rate?
The average trucker remains with a company for 237 days after they’ve started their job. This rate is higher than the national average of 197 days. However, this average fluctuates. One study from Stay Metrics found that the first seven days of employment are critical to the retention rate. One in 20 drivers leaves the company in the first seven days.
Turnover is high in the trucking industry. According to the American Trucking Association, the large fleet turnover rate was 89% as of March 2021. High employee turnover does not necessarily mean leaving the industry; truck drivers may change carriers in search of higher wages. Moreover, many truck drivers are paid by the mile.
To retain drivers, trucking companies should focus on providing a positive and safe work environment. A positive working environment is essential to a trucker’s health and well-being. Many commercial drivers leave their employers for higher wages, better perks and better working hours. To retain the best drivers, carriers should improve employee engagement. An engaged driver is a safer, more productive and more satisfied employee. According to Gallup, companies with high employee engagement have fewer accidents and injuries.
What Does Driver Retention Mean?
One of the first questions a company should ask itself is, “What Does driver retention pay mean for truck drivers?” There are many reasons why employees decide to move on, but one of the most common is simply a lack of compensation. Even if compensation is good, it often is not enough to motivate people. Drivers need to feel that they are being compensated well, and this means that they should get something extra. Some companies offer elaborate feedback systems, while others are as simple as a Google Form.
Driver retention programs aim to keep drivers long-term. To succeed, they must be built on a foundation of trust and a commitment to improvement. It is important to avoid luring new drivers with a false sense of security; this will only lead to a short-term ‘honeymoon’ period. Rather, the company should seek to understand the needs and priorities of the drivers and work together with them to build a positive work environment.
During the past 30 years, the trucking industry has faced a shortage of truck drivers. With a shortage of qualified drivers, many drivers have quit the industry. The average turnover rate is ninety percent for long-haul carriers and seventy percent for smaller carriers. The average length of employment for a new driver is only six months. The trucking industry has long faced a retention issue and is still working to address it.
How Can I Reduce My Truck Driver Turnover?
Driver turnover is a common problem for trucking companies, but there are ways to improve the retention rate of your drivers. In the first place, make your drivers feel welcome and appreciated. In addition, ask them for feedback and suggestions. Setting up an anonymous feedback system for your drivers will help you to find out what isn’t working for them.
Another way to improve driver retention is to give drivers job security. Drivers who feel like they have a future with a company will be less likely to leave, which will save time and money. It will also improve morale, which is important when you’re looking to hire new drivers.
Another way to improve driver retention is to encourage drivers to enjoy life outside of work. By giving drivers visibility into their schedules, employers can plan around their schedules and promote family time. In addition, promoting driver health and safety is a good way to retain good drivers.
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