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Driver turnover solution: Driver service
By Timothy D. Brady
Oct 11, 2006 3:39 PM
The first lesson in customer…er…driver service is find out what the drivers need, then give them what they want. In other words, understand both the driver’s needs and wants, then provide both.
- If they want reasonable pay for their work, then figure a way to provide it. The cost of replacing drivers is continually on the increase, currently ranging from $8,000 to $15,000 for each replacement driver. If your turnover rate is over 100%, it would be better to pay that recruitment cost to drivers to keep them rather than replace them. You can either invest in your drivers now or pay it out later; either way it’ll be coming out of the company’s pocket. And remember, you get what you pay for. Even the CEO of one of the nation’s largest carriers has said to get and retain quality drivers in the trucking industry, driver pay needs to double. There are white papers and university studies that support his observations.
- Consistency in pay is one of the largest complaints drivers have for not staying in the industry. The problem is the landlord, mortgage company, banks and other creditors insist their payments be on time. The food needs to be on the table when the kids are hungry. When drivers are paid by the mile, it’s difficult for them to meet those obligations and needs, especially if paid miles are short that week, or worse, several weeks in a row. There are two solutions to this core need. First, be sure you provide money management instruction to your drivers, regardless of whether they’re company drivers or lease operators. A financially inept driver will drain a company’s cash; a financially knowledgeable driver will be a benefit to the trucking company. Second, find a means to provide your drivers with a guaranteed weekly, bi-weekly or monthly base pay that will provide them with the means to pay their encumbrances, including business and personal debt for your lease operators. From there add your performance, safety and other bonuses. Any quality driver will be more inclined to stay if he’s receiving consistent weekly pay that meets his needs, and can increase his take home pay by reaching performance and safety goals for which bonuses are paid. Be creative. For your lease operators, think in terms of what you to do to keep your top salesperson, then use that same formula for your lease operator fleet. Just remember it’s not how much a driver earns a mile, it’s what a driver takes home per week, month, quarter and year that pays for the bacon.
- Home time is another sticky wicket for drivers. This solution is also quite a challenge—different drivers want to be home at different times. Some are home every night, others are home weekends, and others will go out for several weeks and then want an extended period at the house. Again, be creative. A company in Tennessee guarantees their drivers will be home every weekend. If circumstances come around where it’s not possible, regardless of the reason, they pay that driver an additional hundred dollars per day above his regular pay or revenue. They do it for both company drivers and lease operators.
Other customer services traits that will work for the retainment of drivers are:
- Communicate consistently.
- Honesty and truthfulness: remember we’re all human; we make mistakes. It’s easier to admit and resolve, than to cover up and have someone else discover it.
- Say what you’ll do; do what you say.
- Deliver no “surprises.”
- Anticipate problems and their solutions.
- Strive to exceed the expectations of your drivers.
- Think quality… quality, quality.
Driver retainment is not difficult if approached from the correct paradigm. Like the book said, we learned all we needed to know in life in kindergarten: “Do unto others as we want them to do for us.”
It’s said the definition of insanity is doing the same thing, the same way, while expecting different results. Has the trucking industry gone insane, or is it going to change? That decision is up to each one of us.
Remember, it’s your company, your truck.
Timothy D. Brady is a 20 + year trucking veteran and AMSA’s 2002 Super Van Operator of the Year HHG. He’s the “Trucker’s Business Advisor” on Sirius Road Dog Network’s “Open Road Café” Wednesday mornings. Brady has authored several trucking business books.
He’s available for speaking engagements and to conduct workshops.
Contact him at tbrady@writeuptheroad.com or (800) 292-8072.
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