1. Why Drivers Stay with Fleets: Driver Appreciation Sustains Fleet Loyalty

2. Asking the Right Question. 1 Kuntz, Ray. Transportation’s Role in Climate Change and Reducing Greenhouse Gases. July 14, 2009. Most fleets suffering from industry-average turnover rates ask, “Why do drivers leave?” Unfortunately, the only people who can honestly answer that question have already packed up and gone. So these fleets look to new recruits, assuming that the incentive that attracted a new driver (typically pay rate) from an old company will also retain that driver. But a large majority of driver turnover occurs within the first 90 days a driver is hired. Clearly, new recruits may not be the best group by which to gauge motivators for driver loyalty. We suggest asking, “Why do drivers stay?” Typically, if you can find a segment of drivers that have maintained their employment with you for 6 months or more, you’ve likely found a loyal group of drivers. Find out how you’ve earned that loyalty.

3. In January 2010, Open Road Drivers Plan ® conducted a survey of professional truck drivers, asking this question, to determine the key factors driving loyalty to carriers. Drivers were asked to rate the importance of specific employee benefits in their decision to stay with or leave a trucking company. Research Summary. Driver Breakdown 48% - Retired or Unemployed* 52% - Active Drivers 68% - Company Drivers 32% - Owner-Operators Demographic Males 36-55 years of age Earning $0.43 / mile where applicable Benefit Categories Compensation and Incentives Equipment and Technology Employee/Company Communications Job Stability *Only active drivers were considered when weighing the value of employee benefits and job satisfaction.

4. Less than 10% of active drivers rate their current trucking companies “above average” in providing basic employee benefits. 35% rated their current companies “below average” -- a relief perhaps for the 55% of trucking companies landing in the “magic middle,” but in an industry that consistently maintains turnover rates in the triple digits, achieving minimum expectations may cost your company hundreds of thousands of dollars each year. Research Summary. Rate your most recent company for their performance in the following categories: Equipment and Technology, Benefits and Incentives, Co-workers and Management, Corporate Environment. (Average Overall Corporate Scores)

6. Keep a driver driving, and you’re likely to have a satisfied employee. 100% of surveyed drivers agree that steady work/miles and the stability of their company determined their loyalty to their fleet. After all, an attractive mileage rate doesn’t amount to much without mileage to multiply the extra pay-per-mile. Quality, consistent miles clearly indicate to a driver that both the trucking company and the job are secure. Job Stability is all About Mobility.

7. Carriers that rated highest among drivers for overall job satisfaction clearly communicate career advancement opportunities to all employees. But job stability has a long-term impact as well. Many drivers (74%) identified career support and development as important to their loyalty; the carriers that rated highest among drivers for overall job satisfaction clearly communicate career advancement opportunities to all employees. Make sure you understand your drivers’ long-term goals, whether they be to lease their own truck, to transport freight or HazMat, or to advance into an office/management position. Even if a driver intends to be a company driver until retirement, the knowledge that other opportunities exist may create an increased perception of job stability. Job Stability is all About Mobility.

8. Driver incentive programs improve driver and company morale and have been shown to decrease fleet costs. Appreciation Makes the Job Worthwhile. The FMCSA references one incentive pilot program that decreased new driver turnover from 98% to 20%. [2] If we estimate the average cost of turnover per driver at $8,000, that 78% differential equates to over $600,000 in corporate savings per every hundred drivers hired. Beyond this, the FMCSA was also able to identify an average decrease in carrier crashes, insurance claims and workers’ compensation claims of 65% by carriers utilizing a safety-specific incentive program. [2] The Federal Motor Carrier Safety Administration. “Driver Issues: Commercial Motor Vehicle Safety Literature Review.” June, 2007.

9. Two out of three drivers place high value on a company’s driver recognition and safety incentive programs when deciding whether to stay with or leave a carrier, and 97% of drivers place value in the carrier’s overall dedication to safety. Appreciation Makes the Job Worthwhile. How important are the following when choosing to stay with an employer?.

11. The value of optimizing these contacts is transparent; the better question may be how to optimize them. Communication is the Retention Lifeline. Methodology: Your drivers lead a mobile lifestyle, and your job as their employer is to maximize their mileage. That said, a driver’s lifestyle can limit your ability to maintain personal contact; so be sure to enlist a variety of personal and mass communication methods into your daily contact with drivers: voicemails, hotlines, personal phone calls, text messages, email, online forums, web conferences, in-person one-on-one meetings and focus groups. Messaging: If we understand that “Appreciation Makes the Job Worthwhile,” then every individual within your organization should be aware and appreciative of the value your drivers provide to your company. Be clear in your communications with drivers and ensure that the underlying message is always one of appreciation and respect.