The turnover rate for large truckload carriers increased from 79% in this year’s 2nd quarter (ranking in as the highest rate since 2008’s first quarter) to 89% last quarter, an article on fleetowner.com notes.
Although 2005’s fourth quarter holds the highest truckload turnover rate at 134 percent, driver turnover averaged 81% this year, increasing by 50% since 2010’s first quarter (http://fleetowner.com/management/news/driver-turnover-rate-tl-carriers-1213/).
Those truckload carriers considered small (bringing in under $30 million a year in revenue) increased in driver turnover as well, rising 10% to 57%.
On the other hand, the less-than-truckload’s driver turnover continued to remain low at 10%.
The ATA’s Bob Costello accounted for these changes stating that, “Clearly, due to the economic recovery, as well as regulatory factors like CSA, we are seeing the market for good, quality drivers tighten…As our tonnage index has shown recently, demand for freight continues to rise, so we expect the need for quality drivers to become more acute going forward, particularly if regulations either force current drivers out of the industry or force fleets to put more trucks on the road” (http://fleetowner.com/management/news/driver-turnover-rate-tl-carriers-1213/).
As Costello explains, new/stricter safety regulations, such as the CSA 2010 are taking unsafe drivers off of the road and are forcing carriers to close. Besides that, drivers expressed their reasons for leaving a job in the Journal of Commerce’s CostDown Consulting study which included the following:
-Insufficient compensation/benefits: Given that LTL drivers typically make more than truckload drivers ($58,000 on average compared to the $48,000 truckload drivers make, according to FTR Associates recent data), compensation would account for a smaller percentage of driver turnover than truckload drivers (http://www.dcvelocity.com/articles/20111213high_driver_turnover_at_large_truckload_fleets/).
Road Scholar Transport compensates our drivers for their hard work, offering a $1500 sign-on bonus, excellent pay, safety bonuses, a comprehensive benefits package for eligible full-time employees, and much more!
-Broken promises set forth upon hirement in regards to wages, bonuses, etc.
-Not enough home time: Road Scholar (as a family-owned business) understands the importance of family, which is why we offer flexibility in work schedules, home time, as well as full-time and part-time opportunities so your personal life is not inconvenienced by work.
-Poor equipment/vehicle maintenance: A company may be offering a hefty start-up bonus but what about the safety of the driver? Under what conditions are they working with? Vehicle safety is not something that can be left up to chance and could cost drivers wages due to being inoperable, or worse, cause an accident. That’s why Road Scholar always conducts pre- and post-trip vehicle inspections, has a skilled maintenance team, and operates excellent equipment which includes new 2012 models.
-Inability to provide problem resolution in the work environment: Road Scholar’s drivers use equipment such as Qualcomm and Nextel direct connect to communicate with a friendly, courteous, and knowledgeable operations team who responds immediately to any concerns.
-Unclear/unfair work rules
Companies can draw in drivers through bonuses but can they maintain them? If you are looking for a carrier in the trucking industry and are seeking the above criteria, then visit www.roadscholar.com and apply for a job today!
What’s most important to you when applying for a truck driver position? Cast your vote/comments below:
-Equipment/Vehicle Model and Maintenance
-Other (List comments below)