Driver Recruitment and Retention Overview OverviewIntroduction Recruiting Issues

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 Safety. First 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 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 2 Q 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 PLACE POSTAGE HERE 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

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 Safety. First • Talk to your peers, too.

Need More? Paul Farrell, CEO Safety. First Systems 1 -888 -603 -6987 (toll free)