How to Develop an EFFECTIVE Driver Retention Program

CostDown Consulting is the Industry Expert in Driver Retention : 

Copyright June 2010 - CostDown Consulting CostDown Consulting is the Industry Expert in Driver Retention CostDown Consulting “ The Effort Ratio between your Retention Program and your Recruiting Program should be 2:1 – put twice the effort into keeping your experienced drivers as you do recruiting new ones “ Free Trucking Industry Training Presentation

Presentation Agenda : 

Presentation Agenda “ Developing an Effective Driver Retention Program” June 2010 The Driver Employment Strategy Developing an Effective Driver Retention Program Step 1: Understanding Why Drivers Leave Step 2: Understanding Why Your Drivers Leave - Survey Development & Analysis Step 3: Survey Results Letter & Work Life Improvement Committee Step 4: Training Driver Managers on Retention Financial & Productivity Costs of Driver Turnover

Driver Employment Strategy : 

Driver Employment Strategy Recruiting Program – Capital & Resources allocated to HIRE qualified drivers Retention Program – Capital & Resources allocated to KEEP qualified drivers Two Programs with a Common Goal Optimal Driver Workforce Size Retention Program Recruiting Program

Driver Employment Strategy : 

Driver Employment Strategy Restricts Driver Flow Out of the Company Increases Applicant Flow into the Company

Driver Employment Strategy: Capital & Resources : 

Driver Employment Strategy: Capital & Resources

Presentation Agenda : 

Presentation Agenda “ Developing an Effective Driver Retention Program” June 2010 Concept of Driver Employment Strategy Developing an Effective Driver Retention Program Step 1: Understanding Why Drivers Leave

Step 1: Industry Study on Driver Turnover : 

Step 1: Industry Study on Driver Turnover

Step 1: Industry Study on Driver Turnover : 

The Employment Offering is comprised of those Influences most drivers look at when considering applying at a company. The Influences Compensation, Home Time and Equipment make up the Employment Offering. If your company does not remain competitive in their Employment Offering, your Retention Efforts will fail. Key Point Step 1: Industry Study on Driver Turnover

Presentation Agenda : 

Presentation Agenda “ Developing an Effective Driver Retention Program” June 2010 Concept of Driver Employment Strategy Developing an Effective Driver Retention Program Step 1: Understanding Why Drivers Leave Step 2: Understanding Why Your Drivers Leave - Survey Development & Analysis

Step 2: Develop Driver Retention Survey : 

Step 2: Develop Driver Retention Survey Your Driver Retention Survey should have the following attributes: Anonymous Response Questions Soliciting Driver’s Profile Tenure, Driver Type, Driver Location Two-three Multiple-Choice Questions for each of 10 Influences 3-5 Short Answer/Essay Questions Owner-Operator Treatment > 20% O/O fleet – separate survey The more drivers that participate, the better the results Baseline your Company’s Driver Turnover Issues with a Survey

Step 2: Develop Driver Retention Survey – Multiple Choice : 

Step 2: Develop Driver Retention Survey – Multiple Choice The survey should contain 2 - 3 Multiple Choice Questions about each Influence. There must only be three response choices for each question using the following exact format: 1. Yes – Excellent (very positive response) 2. Maybe – Average (neutral response) 3. No – Poor (very negative response) Critical

Step 2: Develop Driver Retention Survey – Multiple Choice : 

Step 2: Develop Driver Retention Survey – Multiple Choice How do the health care benefits XYZ provide its employees compare to the benefits other trucking companies provide for their employees? Multiple Choice Example: Excellent – Benefits are very good Average – Benefits are about the same as most other trucking companies Poor – Benefits are definitely worse than provided by other trucking companies Influence: Compensation

Step 2: Analyze Driver Retention Survey Results - Example : 

Step 2: Analyze Driver Retention Survey Results - Example Averaged responses by Driver Profile

Step 2: Analyze Driver Retention Survey Results - Example : 

Step 2: Analyze Driver Retention Survey Results - Example Averaged responses by Driver Profile

Step 2: Analyze Driver Retention Survey Results - Example : 

Step 2: Analyze Driver Retention Survey Results - Example Averaged responses by Driver Profile

Step 2: Analyze Driver Retention Survey Results - Example : 

Step 2: Analyze Driver Retention Survey Results - Example Averaged responses by Driver Profile

Step 2: Analyze Driver Retention Survey Results - Example : 

Step 2: Analyze Driver Retention Survey Results - Example Averaged responses by Driver Profile

Step 2: Analyze Driver Retention Survey Results - Example : 

Step 2: Analyze Driver Retention Survey Results - Example Averaged responses by Driver Profile

Step 2: Analyze Driver Retention Survey Results – Locations : 

Step 2: Analyze Driver Retention Survey Results – Locations Analyze Location Differences: Location differences will focus in on those Influences that the Field has primary responsibility for

Step 2: Analyze Driver Retention Survey Results – Locations : 

Step 2: Analyze Driver Retention Survey Results – Locations Analyze Location Differences: Location differences will focus in on those Influences that the Field has primary responsibility for

Step 2: Analyze Driver Retention Survey Results – Locations : 

Step 2: Analyze Driver Retention Survey Results – Locations Analyze Location Differences: Location differences will focus in on those Influences that the Field has primary responsibility for

Step 2: Analyze Driver Retention Survey Results : 

Step 2: Analyze Driver Retention Survey Results You value their opinion It puts them on notice that you want to improve their work experience at your company Key Point Approximately 80% of your Survey Results will be Intuitive while only 20% will be Insightful The Driver Survey provides another benefit of equal or greater value to the insight it provides. It lets your drivers know …. I knew that I didn’t Know that 80% 20%

Presentation Agenda : 

Presentation Agenda “ Developing an Effective Driver Retention Program” June 2010 Concept of Driver Employment Strategy Developing an Effective Driver Retention Program Step 1: Understanding Why Drivers Leave Step 2: Understanding Why Your Drivers Leave - Survey Development & Analysis Step 3: Survey Results Letter & Work Life Improvement Committee

Step 3: Survey Results Letter : 

Step 3: Survey Results Letter After survey results are analyzed, a Survey Results Letter is issued from the CEO of the organization and mailed to each driver that contains: Survey Results CEO Commitment to act upon survey results & the establishment of a ‘Work Life Improvement Committee’

Step 3: Survey Results Letter : 

Step 3: Survey Results Letter Quantify the Positive 78% of all company drivers rated our Benefits as Average to Excellent We received above Average Ratings in 70% of the areas measured including Communication, Problem Resolution, … Generalize the Negative Improvement opportunities identified were in the areas of Driver Respect, Training and Fair Work Rules.

Step 3: Survey Results Letter – CEO Commitment : 

Step 3: Survey Results Letter – CEO Commitment Personal Commitment: The company is going to act upon survey results to the extent capital, profitability and service permit. Announcement: Appointment of a permanent Work Life Improvement Committee headed by [High Level Ops Executive ].

Step 3: Work Life Improvement Committee : 

Step 3: Work Life Improvement Committee Mission: Provide a continual flow of new initiatives and communications that improve your drivers real and perceived opinions of the working conditions at XYZ Trucking. Minimum Staffing: Highest Level Ops Officer Top Recruiting Manager ‘Hands On’ Ops Officer Project Manager ( temporary ? ) Employee Guests as Needed Initial Approach: Start with Survey Results & Turnover Profiles Look for quick yet meaningful initiatives (solutions) Introduce 2-3 initiatives within 2-3 weeks of Survey Results Letter Work Life Improvement Committee

Step 3: Work Life Improvement Committee : 

Step 3: Work Life Improvement Committee An Effective Driver Retention Program Builds Driver Loyalty through Continual Improvements to Working Conditions

Step 3: Work Life Improvement Committee : 

Step 3: Work Life Improvement Committee Design initiatives to target Highest Turnover Profiles & Lowest Ranked Influences

Step 3: Work Life Improvement Committee : 

Step 3: Work Life Improvement Committee Driver Concern: Pay Rates are Not Competitive Distinguish between Real & Perceived Influence Concerns

Step 3: Work Life Improvement Committee : 

Step 3: Work Life Improvement Committee Driver Mentor Program Trained Driver Mentor (DM) acclimates new employees into the company by providing instruction on Policy, Customers/Delivery, Payroll, Maintenance, etc… Influences Communication Training Problem Resolution Compensation Advancement Turnover Profile 0-60 Day Drivers DMs selected based on experience, pro-company attitude, strong work ethic, good communication & interpersonal skills. DMs educated on ‘hot topics’ ( ex: comparing wages between carriers) and WLIC initiatives. New drivers given DM cell # and instructed to call with any questions. DMs limited to 6 new drivers at one time and paid $300 for each assigned driver that makes 3 months of seniority. Program Cost : Breakeven is saving 1 out of 26 drivers (@$8,000/turnover). Program Overview

Step 3: Work Life Improvement Committee : 

Step 3: Work Life Improvement Committee Examples of Initiatives

Presentation Agenda : 

Presentation Agenda “ Developing an Effective Driver Retention Program” June 2010 Concept of Driver Employment Strategy Developing an Effective Driver Retention Program Step 1: Understanding Why Drivers Leave Step 2: Understanding Why Your Drivers Leave - Survey Development & Analysis Step 3: Survey Results Letter & Work Life Improvement Committee Step 4: Training Driver Managers on Retention

Step 4: Driver Manager Training : 

Step 4: Driver Manager Training Driver Managers (DMs) have Primary and Secondary responsibility for all 10 Influences Educated on the Influences, Work Life Improvement Committee, Turnover Costs & their role in Driver Retention Provided with an Awareness & Appreciation of the job of Truck Driver Trained in Tactical Planning & Soft Skills Offered Financial Incentive to improve Retention Therefore they should be:

Driver Employment Strategy: Capital & Resources : 

Driver Employment Strategy: Capital & Resources

Presentation Agenda : 

Presentation Agenda “ Developing an Effective Driver Retention Program” June 2010 Concept of Driver Employment Strategy Developing an Effective Driver Retention Program Step 1: Understanding Why Drivers Leave Step 2: Understanding Why Your Drivers Leave - Survey Development & Analysis Step 3: Survey Results Letter & Work Life Improvement Committee Step 4: Training Driver Managers on Retention Financial & Productivity Costs of Driver Turnover

Driver Retention Insights : 

The range of 80% – 125% Annual Driver Turnover translates to a Cost Per Mile of $0.058 - $0.091/mile Driver Retention Insights

Driver Retention Insights : 

Every 4 drivers lost to turnover equates to the loss of one full time driver for a year’s time Driver Retention Insights

CostDown Consulting is the Industry Expert in Driver Retention : 

Copyright June 2010 - CostDown Consulting CostDown Consulting is the Industry Expert in Driver Retention CostDown Consulting WEB SITE RESOURCES: DRIVER RETENTION CONTACT INFORMATION: Driver Retention Videos presented on Big Truck TV: Relationship between Retention & Recruiting Driver Managers and Retention Work Life Improvement Committee Auditing the 5 Points of the Recruiting Chain Joe White CEO – CostDown Consulting JoeWhite@CostDownConsulting.com Office: 770-995-6071 Mobile: 404-542-3761 Web: CostDown Consulting (www.CostDownConsulting.com) Free Trucking Industry Training Presentation “ The Effort Ratio between your Retention Program and your Recruiting Program should be 2:1 – put twice the effort into keeping your experienced drivers as you do recruiting new ones “ Webinar: Impact the Recession & CSA 2010 will have on Driver Retention