Driver Recruitment and Retention

Overview

• Overview/Introduction

• Recruiting Issues

• Retention Issues

• Wrap Up

• Q&A

About Your Presenter

• Insurance Loss Control Professional from 1987 to 1999

• Joined SafetyFirst to focus solely on fleet safety

• Active Professional Member, ASSE

• Scorer/Recorder – NTDC/ATA

Introduction

• Attracting “good” drivers and keeping the “best” ones are two challenges that can frustrate managers, but…

Without drivers, trucks don’t move

Introduction

• Benefits of maintaining a stable roster of drivers:–Increased Dispatch Capacity

–Sales Team Confidence

–Safety Team Results Improve

Profit not diverted to maintain overhead expenses

Introduction – Costs of Turnover

Turnover Costs = Cost per Hire (e.g., advertising, agency fees, sign-on bonus, etc.) + Vacancy Cost (e.g. lost opportunity, productivity and morale of other employees providing coverage for vacant positions) + Learning Curve Productivity (e.g., cost to train new employee plus cost of lost business knowledge)

Introduction – Costs of Turnover

Various worksheets can be

obtained or developed to track

and analyze turnover costs

(this one is from Trincon)

Introduction – Not enough drivers

• Labor pool has been changing over the past 50 years

–Average birthrate low (2.07 children per couple)

–“Kids” don’t like/respect hard work

–Driving not viewed as “career” job

–Technology jobs are appealing ($$$)

Introduction – Not enough drivers

• TWIC security screening

• NAFTA (increasing competition)

• Language Skills Enforcement

• Driver Health Legislation Proposals

(certify medical exam)

Introduction – Company Issues

• During 2Q of 2008, CAB reports double the number of bankruptcies (970 carriers)

• This removed 88,000 tractors from the road, and…

Scares drivers about job security

What’s it all mean?

• Jack Welch, CEO of General Electric said;

“Business is like a sports team; to win, you have to

field the best talent”.

How about fielding a complete team?

Introduction

• There may be two issues keeping your company from achieving its staffing goals:

–Too few qualified candidates arriving at your door, and

–Too many ‘veterans’ leaving your company.

Introduction

• Disclaimer: There are no “magical solutions”, no “silver bullets”

• You can do better, but what works for one company may not work for another

• You must analyze your current situation and develop your own plan

Recruiting Strategies

• Effective recruiting demands:–Information management, and

–Sourcing tactics

&

Recruiting Strategies

• Tracking information is critical to getting results and justifying budgets for sourcing

Recruiting Strategies

• Typical questions recruiters ask:

–Where did applicants first hear of your company?

–Why did some candidates who were completely unqualified apply?

–Why did qualified candidates fail to show up, or quit after orientation?

Recruiting Strategies

• How do you track the answers?

Recruiting Strategies

• These answers will provide the direction you need to take to improve your program:

–Clearer wording in want ads

–Spend more on attractive ads, or hire professionals to help

–Cut ads that didn’t work

Recruiting Strategies• Note: exit interviews may help with

recruiting tactics as much as they may help with retention issues

–If they misunderstood the job requirements, the ads may need work

–If they misunderstood recruiter’s offers, then recruiters may need to revise scripts

Recruiting Strategies

• Sourcing = attracting candidates

–Advertising thru various media (ie. newspapers, internet, job fairs)

–Recruiting research = getting names and proactively reaching out to them about your opening

Recruiting Strategies

• Advertising

–What has worked for your team?

–What hasn’t worked?

–Can you “fine tune” your efforts at wording, ad placement, painting a picture, using color, etc.?

ALSO, check out page 3 & 4 of the handout!

Recruiting Strategies• Recruiting

–The best drivers who are happy where they are presently, do not look for ads or job fairs

–Do you attempt to contact them about switching to your company?

–Can you attract them with something they value that they don’t have?

Recruiting Strategies

• Recruiting

–How do you get names of potential candidates* now? (*drivers who are not actively looking)

–How do you approach them with a job opportunity?

Recruiting Strategies

• Re-Recruiting

–Drivers who left your company may be worth bringing back (if not fired for cause, etc.)

–How do you maintain contact with them after they quit?

–Can they be brought back?

“Re-Recruitment”

• After 3 Weeks–Send “If the Grass Isn’t Greener

Come Back to Your Roots” postcard

• After 6 Weeks–Send recruiting brochure with

invitation to attend an open house

–Follow-up with phone call from member of management team

ABC Companies

Great part-time opportunities are available for drivers!

Call 1-800-555-1212 to apply or go to

www.abc.com to apply online.

An Equal Opportunity Employer

Joe Smith

100 Street Road

Anytown, PA 10000

PLACEPOSTAGE

HERE

Recruiting Strategies - Summary

• Track your efforts & results

• Use ads that will be seen by qualified candidates and use wording that works (clear & honest)

• Recruit drivers who aren’t looking (they may be a good fit by design)

See page 9 & 10 of handout

Retention Strategies

• Drivers come in two categories: –Those who’ll stay until the bitter end

–Those who start looking soon after orientation ends

• The difference?–Loyalty/Trust/Expectations Are Met

–Pay/Benefits/Expectations Not Met

Retention Strategies

• It would be easy to start rambling off a list of what you “need to do” to keep drivers, but many of these: –You’re already doing

–You’ve already tried (and didn’t work)

–You’ll try and have mixed results

How do we turn options into results

Retention Strategies

• First, ask why they’re leaving

• Obvious first step, but…–How do you know you’re getting

“real” answers?

–How/When/Who do you ask?

–Do you record and track the results?

See pages 5-7 of handout

Retention Strategies

• Driver Surveys (active employees)

• Formal Exit Interviews (last ditch attempt to retain driver)

• Post-departure Phone Surveys –Individuals who started training

program and dropped out

–Employees who left after short period of time

Retention Strategies

• Must be willing to really investigate

• Don’t settle for the easy answers

• Its your career on the line – press for details

Retention Strategies

• Common Tactics:–Longer orientation, more detail and

time asking questions of drivers

–Driver “Mentors” to buddy up with new hires

–Progressive training on life issues, how to deal with shippers, etc.

–Recognition, bonus, reward plans

Retention Strategies

• Common Tactics:–Driver Support Team (stress relief

valve, communications team, newsletters, explain benefits, help get benefits problems resolved while driver is away from home, etc.)

–Achievement (job/title progression) or “career path” development

Retention Strategies

Wrap Up

• Recruiting and Retention work best when you can “get inside” the minds of your drivers

Wrap Up

• Tracking your efforts and results keep you from making the same mistakes, and can steer you to better results.

Wrap Up

• Recruiting isn’t just about advertising, it’s about “selling” your company as a great place to work without misleading candidates about the reality of your situation

Wrap Up

• Recruiting needs “fine tuning”:–Last year’s ad should be re-written to

reflect changes in your company and things learned from exit interviews or driver surveys.

–Driver’s needs and wants change, too. Appeal to their concerns

Wrap Up

• Drivers will stay loyally if you identify their concerns/expectations and take reasonable steps to address those concerns or meet those expectations.

Wrap Up

• There are many resources available to provide ideas, sample wording, forms, procedures

• The handout has comments from safety directors who are current clients of SafetyFirst

• Talk to your peers, too.

Need More?

Paul Farrell, CEOSafetyFirst Systems1-888-603-6987 (toll free)