This is good news for trucking companies. They don’t have to compete with other industries and simply need to create favorable working conditions compared to their peers if they want to attract and retain drivers.
Whether your company is struggling with turnover or you want to improve your retention, take steps to address the root of the issue.
Key factors contributing to driver turnover
Employees leave because of a mixture of tangible and intangible factors. While your drivers care about their pay rates, they also want to work for well-run companies. Before you can fix your problems, understand the reasons behind them. Here are a few top factors that push drivers away.
Disorganized workflows and inefficient operations
Disorganized workflows can ruin a driver’s day. Your driver might not have clear instructions on where they should go or how to get there. Poor planning creates inefficient routes and the inability to avoid delays. Even inefficient loading processes can prevent drivers from moving goods.
Poor workflows mean your employees spend more time sitting and less time driving, whether they are stuck at a loading dock or stopped in traffic. Frustrating company policies can also lead to burnout because your employees aren’t able to do their jobs.
Not only will better processes help your organization increase productivity and profitability, but they can also significantly contribute to driver happiness.
Lack of support from management
Management plays a significant role in job satisfaction. Good leaders support employees by communicating clearly and empowering them. Drivers can have the right tools and knowledge to solve problems, along with the trust of management that they will make the right calls.
Unfortunately, trust and autonomy are rare in many industries. Research shows that along with poor compensation, one of the biggest causes of employee dissatisfaction is a lack of support from coworkers and bosses.
Trucking companies need to foster strong driver-management relationships by improving communication, feedback, and training. Not only will this have a direct effect on morale, but it will also improve your workflow.
Insufficient recognition and compensation
Driver pay has been on the rise in recent years as companies fight to recruit and retain workers. In late 2023, the National Transportation Institute saw an increase in drivers getting paid between 50 to 60 cents per mile and a decrease in drivers getting paid 40 to 50 cents per mile. In most cases, companies that don’t offer competitive pay will struggle with retention.
However, compensation goes beyond base pay and signing bonuses. It also covers recognition and career advancement. Employees want to feel valued in what they do. One study found less than half of employees are satisfied with their career development opportunities, and the trucking industry isn’t exempt from this data.
Well-paid drivers will show up. Well-paid and valued drivers will do their best for you and actively support company growth in the long run.
Tools and techniques for improving driver retention
Once you understand why your driver turnover is high, you can implement solutions to address the issues. Here are a few steps you can take to improve your operations and create a better work environment for your staff.
Streamlining operations with technology
Drivers who are paid per mile lose money when they are stuck in traffic or left waiting at the loading dock. This can be frustrating and costly for both your drivers and overall operations. Consider updating your fleet management tools so you can optimize routes for traffic flow while improving scheduling systems.
Durable fleet monitoring tools can last for years, resisting heat, humidity, and water. They can collect data points to identify patterns throughout the journey and allow for real-time communication and training. This real-time communication can help drivers switch to better routes when traffic, construction, or weather issues block their way.
Look for systems that were designed for the trucking industry. This will ensure they are user-friendly and safe for people behind the wheel. Your drivers can get the most out of the apps and technology without distracting them from the road.
Enhancing management support and communication
Some solutions to employee turnover are free. It doesn’t cost anything to improve how dispatchers and drivers communicate and review processes so they can be more effective. Here are a few best practices you can implement.
- Establish one-on-one check-ins: Create space for employees to bring up concerns and issues that affect their workflows.
- Regularly provide feedback: Don’t wait for annual performance reviews to talk to your team. Let your team know regularly what they are doing well and where they can improve.
- Create peer mentorship programs: Support career development by pairing senior drivers with newer ones.
- Train and retrain your staff: Learning never stops. Implement training sessions and meetings to refresh your team on industry best practices.
Not only will these programs make you a better leader, but they can also help you clearly define goals with your staff and listen to their concerns. You can improve two-way communication so everyone is aligned in the work they need to do.
Implementing recognition and incentive programs
There are multiple ways to improve recognition efforts within your organization. First, highlight the good work your drivers are doing during team meetings and one-on-one sessions. Gallup found that 28% of employees say their most memorable recognition came from their manager, so your words as a leader have power.
Your company can also develop more formal recognition programs, like safety awards for careful drivers and tenure acknowledgment. When a driver works for your company for five, 10, or even 20 years, they want more than a pat on the back.
Finally, consider developing performance-based bonuses and incentive programs that motivate drivers to work hard and do their best. This could boost motivation and morale as employees are rewarded for investing in your organization.
Measuring the impact of retention efforts
As you develop programs to increase retention, consider how you will measure the success of these policies. It’s hard to measure the value of positive feedback, but there are plenty of metrics you can track to prove that these changes are worth it.
Key performance indicators (KPIs) for driver satisfaction
KPIs are clear metrics you can track to indicate the success of a program or initiative. For example, when you implement fleet management tools to optimize routes, you will track KPIs related to drive times. When drivers spend less time stuck in traffic, their drive times should decrease.
Here are a few KPIs you can monitor as you work to improve your retention efforts:
- Turnover rate: Measure how many employees leave your company each year.
- Average tenure: Track how long people stay with your company on average.
- Time to hire: Identify how long it takes to fill empty positions. If your company is desirable to work for, you should be able to hire quickly.
- Employee satisfaction: See how happy your employees are in their roles and working for your company.
Most companies already track the number of workers who resign each year; however, you will need to collect employee feedback and survey workers to track how effective your new training and communication programs are.
Long-term benefits of improved driver retention
Your company can also measure the long-term benefits of reduced turnover. It costs between $3,500 and $10,000 to replace employees on average. If you have to replace 10 drivers a year, your company could be losing $100,000 in recruitment, hiring, onboarding, and productivity.
High turnover also means your company may lose experienced drivers, who are more likely to be safe on the road. As your average tenure increases due to your efforts to boost morale, track the number of accidents and safety issues you experience each year. Improved training efforts can also cut down on the number of annual incidents.
It’s hard to put a number on company culture and industry reputation, but you can evaluate your organization and improve your operations. This can boost retention in a high-turnover industry and help you build a dedicated team that is loyal for years.
