Here’s a tip on retention, reveal the ugly. Before I get too far into the weeds in my reveal process, I observe that where driver turnover usually originates is an offshoot of some extenuating factors in the past. The company may have experienced rapid growth. The company might have been sold or amalgamated with another company. The company’s primary customer base or lanes may have switched, short-haul to long-haul. The company ownership might have passed on to the next generation; the primary funding source may have changed, bringing new outside influences.
The chains of habit are too weak to be felt until they are too strong to be broken– Samuel Johnson 1709 – 1784
For us, in trucking, I relate this phrase to the unending variables we deal with, and the unproportionately low returns we receive. You simply cannot take your eyes off the ball in any department if you are running a trucking company; things are just too tight. Johnson said the trouble is you do not see them coming. Habits start so small they can go unnoticed until they are “too strong to be broken.” Turnover is creeping up, don’t worry about it. It will come back down as soon as this or that happens. Next thing you know, your numbers are out of line, and you can’t seem to bring them back down as they continue to deteriorate.
Most of my work done with carriers starts with a general conversation, which paints a picture for me. It is not unlike peeling the layers of an onion. To name a few they would be, what’s the fleet size? What type of trucking does the company do, flatbed, van, etc? What’s the safety record of the business? What are the current driver turnover numbers, and does that answer come with a lot of conjecture? How many unseated units do they have? What does the corporate structure look like and does it reveal a boss or a leader? Along with the all-important question of “What do you think the issue is”?
There is more, of course, but this can easily get a conversation started about the possible issues that cause the turnover. From here, I have a link to a survey that will reveal what people within the company perceive or certain aspects that are vital to retention. These would include safety, communication, culture, operational training and empathy, systems proficiency, consistency in driver contact, employee opportunity, etc. Once I have all the above, I can reasonably ascertain the gaps in company performance that are likely the significant factors contributing to its turnover.
Here is a tip for those companies that are worried about becoming victims of the above scenario. On your income statement, put a line item for turnover, monthly and year to date, if you lose ten drivers a month at 7k per driver, $70,000 a month, $840,000 in any given year. My thinking tells me that this number would be acted on much quicker than if it did not reveal this clearly, especially if it started to creep up with any momentum. Treat this as your ‘effective’ income. Drill this into your tea. Every time a driver leaves, they are taking a bag of cash with $7,000 with them. Now add gross margins from unseated units. All of this is, of course, is accounted for in other areas of your financials. Reveal them and see the eyes in the room roll. We know we can’t hire our way out of the current situation and if you believe as I do that standing still will make you a target. Time is a wasting folks. If you would like to have a general conversation on your company’s turnover, please reach out to me. Let’s see what we can see.
Regards and safe trucking,