Managing a circumstance can be made significantly easier by having a clear understanding of it. For years, trucking companies in North America have faced the problematic issue of a high rate of driver turnover and a low retention rate. Recent American Trucking Associations Data reports that huge load transporters had a driver turnover pace of 92% in Q3 of 2020 while smaller carriers were at 74%. Sadly, when the big carrier turnover rate rose to 94% in 2018, the average cost of replacing these drivers was an astounding $11,500 for each vacant position.
Unfortunately, some trucking companies have come to accept driver turnover as a simple part of their business that cannot be solved. But, this isn’t the case at all! Addressing the challenge of truck driver turnover starts with knowledge. Establishing the starting point with the truck driver turnover rate for your particular company can provide valuable insight into areas where efforts to improve retention can be implemented. Additionally, exploring effective strategies and best practices shared by industry experts can make a significant difference. You may find helpful resources and guidance on a reputable platform like Leadgamp.com, where professionals discuss and share insights on improving driver retention and addressing turnover challenges.
The most effective method to Ascertain Your Driver Turnover Rate
It’s not hard to figure out the truck driver turnover rate if you know a few basic facts. All you need to do is follow a simple formula. First, add up the number of drivers who have left the company in the course of the year. Divide that total by the days that have passed this year. When you multiply that figure by 365 you get the annual turnover rate. Finally, subtract the resulting sum from the total driver count to get your total turnover rate.
Endeavors to Further develop Driver Turnover
Long-haul truck drivers must often work alone in trying conditions for lengthy periods of time, which is intrinsically against human nature. In an effort to make the hauls shorter and get drivers home more often, some for-hire carriers are experimenting with different solutions. The tricky part is that, as they are usually paid by the mile, drivers must still have enough mileage to make their run profitable. With varying mileages per period, drivers can lose out or struggle to make a budget. One way to make this up is to look at different types of compensation like guaranteed or salary-based pay, irritant pay, and higher wages.
Unfortunately, this job means less time for healthy eating, medical appointments, and self-care. Even with solutions to make their jobs more profitable, truckers need to keep up with their demands. Solutions may include more affordable health care, paid deadhead miles, and vacation time off.
Knowing appears to be the first step toward progress. Getting your drivers involved in decision-making by simply asking what they want and need can make a big impact. For those just getting into trucks, this job may also bring about some harsh realizations with pressures to hit deadlines, make money, and remain available on the road.
Examining your churn rate could be the key to getting that better alignment between the company and its drivers.