Category: driver shortage

Guide To Truck Driver Retention

Statistics show that most truck drivers leave their jobs because they feel underpaid, overworked, and underappreciated. When the amount of work exceeds the number of employees, more responsibility is expected from the remaining team members. With these added pressures, it can cause the drivers to start looking for other opportunities with new employers.

Driver retention is a top issue facing the commercial trucking industry. Here are a few suggestions for how your company can increase job satisfaction and ultimately employee retention

  • Set Realistic Job Expectations
  • Commit to Providing Employer Support
  • Offer Competitive Pay
  • Support Driver Health
  • Encourage Input and Feedback

From the beginning, a driver should understand what is expected of them for the job. The training and support that is provided can help employees clearly understand the expectations and help guide them to effectively complete their tasks. Detailed training will help new employees understand the basics of the job, understand the workplace culture, and ensure that they have the necessary tools and knowledge to do the work. Clear training opportunities make for a better driver and allow for a driver to improve their skills!

Let’s talk about money. Compensation is one of the top reasons why an employee will seek out other opportunities. It is important to evaluate and adjust salaries, and if your company can, offer things such as bonuses, additional healthcare benefits and retirement plans. By offering health benefits, stress-management programs, retirement planning or offering gym membership, employees feel better supported when their employer prioritizes their overall well-being. Being competitive in the industry will help entice new applicants and keep your employees for the long run. 

An open door policy is beneficial for any industry. Employees should feel like they can come to their employers with ideas, questions, and concerns at any time. As an employer, providing timely, constructive and positive communication will create an atmosphere of connection and job satisfaction.  Good workplace communication can help employees understand how to reach their professional goals and help them visualize their future with the company.

These are just a few suggestions for how your company can increase job satisfaction and employee retention. Be sure to re-evaluate your efforts regularly by staying current on market standards for salary and benefits and the best practices for developing strong manager-employee relations. High performing truck drivers are an incredibly valuable asset to any business.

It is inevitable that there will be some employees that will leave your company sooner than you may like, but by applying some of these suggestions you can at least hope that they will leave knowing that they were valued and supported. 

Truck Drivers are in High Demand

The trucking industry is one of America’s largest and most valuable fields of service as it encompasses most of the domestic transport within the United States. According to the Census, 70.9% of domestic goods are transported via the trucking industry. This is a staggering statistic showing just how valuable trucking is to the American economic system. Without drivers, the United States would be unable to function as everything from small businesses to large, sometimes even international projects, would be put on hold. 

America’s Finest

 

It is a long known fact that America is experiencing a driver shortage, and since the pandemic arose, the American Trucking Association estimates that the trucking industry is now nearly 80,000 drivers short. This growing need for drivers has inspired many trucking agencies to offer large sign-on bonuses, sometimes up to $15,000, for drivers. This is proof that drivers are some of the United States’ most important citizens as they support most of the American economy with their dedicated service.

The need for new drivers is a very pressing matter, and it is only expected to become more urgent as most drivers are approaching retirement and with no younger people to replenish their positions or the deficit that already exists. In the past, driving was a popular career choice for young people just leaving high school or college. It has become a less popular career choice for several reasons, particularly a lack of publicity on the merits of driving as a career. Acting now, to ensure that driving is represented as a good career choice, will make it possible for the trucking industry to live on and continue to support the American economy.

Popular People

 

Trucking is an increasingly diverse career field with more young people, women, and minority representation than ever before. There are drivers from all backgrounds traveling the roads, and there are few limits on who can become a driver! Going through training and licensing can be a tricky process, but the time and monetary investment is worth it as driving can be a lucrative and rewarding career. 

Drivers that are in it for the long haul are incredibly desirable now, and while this may not suit everyone, it is a great option for people who love to travel and would like a career that carries them all over the country or even gain an in-depth knowledge of the local area if they get a job in regional trucking. Right now is the best time for someone to become a driver because of the generous sign-on offers from trucking agencies. It could also be profitable to start your own agency, but it is recommended that you have practical trucking experience first! 

A Future in Driving

 

Drivers complete some of the most important work in the United States. If you are a driver or have driven in the past, thank you for your service! It can be a tough career, but it is worth it for those who love traveling, meeting new people, and doing something meaningful. Drivers are in high demand right now. So, if you or someone you know would like to pursue a career in driving, it is a wonderful time to do some research and get started planning for your career! 

What is the Truck Parking bill all about?

Parking is something that all drivers, who transport freight long distances, worry about on a regular basis. While some truck stops offer parking and there are other locations that may be viable, there is a serious shortage of free and convenient parking available for drivers across the nation which poses a serious and sometimes life-threatening dilemma. Should the driver continue driving until they reach a parking area, which is dangerous as they are already fatigued, or should they park in a dangerous or illegal place to get some rest?

Outrage at this dilemma has caused many to speak out in favor of drivers. There has recently been a bipartisan bill introduced in the House of Representatives known as the Truck Parking Safety Improvement Act or H.R.6104. If passed, this bill would mean there would be a national initiative to provide more accessible free parking to drivers across the nation to promote their safety and the safety of everyone else driving on the interstate as well.

An Explanation

So why is the Truck Parking Bill only being considered now? It has been a long needed and awaited amendment to the legislation regarding the infrastructure of the United States, so it seemingly should have arrived sooner. Unfortunately, the legal system can be slow, and it is a lengthy process to get a bill written, sponsored, and presented to the house.  then voting, compromising, and ratifying take an added period of time which varies from bill to bill.

Thankfully, bills that benefit drivers are becoming more prevalent. In fact, there has already been an effort to prevent driver injury through Jason’s Law (named after a driver who was murdered after parking in a dangerous area). The issue with this law is that it does not hold enough power to create a national change.  Therefore, Representatives Mike Bost and Angie Craig (who are on different sides of the political aisle) have sponsored the bill to increase available parking for drivers.

Safety and Security

With the truck driving industry growing larger each day, and being projected to grow even more, our current infrastructure cannot keep up with and support drivers who need to rest between long periods of driving. Creating more parking spaces at rest areas, weigh stations, and other locations would allow drivers to feel safe and secure while resting, which will reduce the strain and stress they face daily. If this bill is enacted, it will allocate $755 million to the DOT to undertake the project and provide safe and free places to rest for drivers everywhere. 

Final Thoughts

The Truck Parking Bill is an important step in improving the working conditions for members of one of America’s largest industries. Keeping our drivers safe should be one of the main priorities in legislation, and now it is finally gaining ground. The fact that this bill is bipartisan truly shows how important it is and how little debate there should be over the fact that more must be done to help drivers perform at their very best. The Truck Parking Bill has the potential to do great things for drivers across the nation and set an example for constructing proper rest locations (and enough of them) for the rest of the world to follow. 

Sources:
https://bost.house.gov/media-center/press-releases/bost-bill-expand-truck-parking-would-make-roads-safer
https://www.thetruckersreport.com/truck-parking-bill-mean-755-million-new-free-truck-parking/
https://www.truckinginfo.com/352754/bipartisan-truck-parking-bill-introduced-in-house
https://www.govtrack.us/congress/bills/116/hr6104
https://landline.media/truck-parking-bill-receives-attention-at-house-hearing/ 

Improving Driver Retention

improving-driver-retention
For carriers, keeping good drivers can be a challenge.  Whether there’s a driver shortage or an abundance of them, trucking companies want to keep drivers who are dependable and are going to stick around.  Carriers need to look for new ways to not only find reliable drivers but also to keep them happy.   Hint:  it’s not just about the money.

The trucking industry has been on a rollercoaster ride with a trucker shortage, massive layoffs, and a pandemic, and that’s just in the last year.  The coronavirus has left carriers and drivers alike closing up shop with their return uncertain.  Drivers who deliver food and essential freight are working overtime while others can’t find any loads.  When the dust has settled on this economic shutdown, drivers everywhere may be scrambling for work, giving carriers a good crop to choose from.

The Money

For most people, money is the most important part of their job.  After all, people need to support themselves.  Offer good pay, benefits, and bonuses.

Give Them Time At Home

If possible, give drivers a schedule that allows time at home.  This is particularly important when recruiting new, young drivers as hours away from home are the main reason that they turn elsewhere for employment.  Life on the road doesn’t appeal to everyone and for people with young children, long hauls are a deal-breaker.  One of the most underutilized groups of drivers are women and looking at ways that drivers can have shorter hauls may open up interest from younger or female drivers.  Many companies are now offering shorter routes and flexible schedules so employees can have more balance between work and home.

Show Them Respect

People want to feel respected.  If you treat drivers with respect and let them know that they are valued members of the company, they’ll take pride in the work they do for you.   Your place of business should be professional and welcoming to both men and women.

Create a Safety-Conscious Environment

Understand the safety concerns of all employees because their safety on the road isn’t just about avoiding accidents.  For women, long hauls are particularly dangerous but there has been much concern with trucks being robbed on the road during the coronavirus shutdown. It’s important that safety procedures are in place to protect drivers on the road. Offer seminars and training on how to stay safe out on the road by carrying pepper spray, parking in well-lit areas and other safety strategies that they may not be aware of.

Create a Team Atmosphere

Creating a team atmosphere makes drivers feel like they’re part of something and may make them want to stay with your company.

High turnover costs carriers money but if it is viewed as a puzzle with many pieces, they can improve driver retention, save money and have happy drivers.

At Direct Freight Services, we help shippers find carriers to bring loads to their destinations.  From short routes to cross-country, Direct Freight gives shippers the tools they need to find reliable truckers to carry the load.  For drivers and carriers, Direct Freight’s database of currently available loads will keep your trucks rolling.  Go to Direct Freight today to find out more about how this vital tool can help you.

Low Rates During the Coronavirus Pandemic Are Hurting Drivers

low-rates-during-coronavirus-pandemic-are-hurting-drivers

On May 1st, a convoy of more than 70 trucks gathered on Constitution Ave. in our nation’s capital to protest the low freight rates that are crippling an industry already damaged by the COVID-19 pandemic.  

Rates have fallen to unsustainable lows with truck load rates down from an average of $1.79 per mile in Feb. 2020, to an expected $1.51 in May.  The protesters aren’t asking for changes in the rates but rather, more transparency when it comes to freight brokers.  Drivers have the same overhead they had before the virus hit―truck payments, insurance premiums, fuel costs, repair bills, etc. It is all still there.  Despite the lowered rates, many freight brokers are charging the same commission as before so the protesters are asking for more government regulation.  The drivers are asking that Congress require brokers to provide transparent transaction records upon service completion and eliminate clauses that keep drivers from accessing them.  

There have been some ease of restrictions for drivers who are hauling freight that’s considered essential, the 14-hour limit has been waived so the restriction doesn’t prevent necessities from being delivered quickly, but it’s not enough.  With the closure of bars, restaurants, and many stores, freight isn’t moving like it was before the pandemic so there are fewer available loads and many carriers and drivers, especially smaller operations, are really struggling.  Drivers who can find loads are barely breaking even.  With the major hit to the number of loads, drivers are finding it more difficult to fill deadhead miles and are returning with empty trailers.    For others, it’s more profitable to park their trucks.  

Of course, those who do get loads are opening themselves up to getting the virus.  With so many drivers prone to obesity and who smoke, they may be at greater risk for developing severe symptoms or even dying from the disease. Many owner/operators have chosen to stay home over contracting the virus driving through hot spots in states where the virus is more prevalent.  

As we gain control over the virus and the country begins to open up again, there may be lasting damage to the trucking industry.  Even when demand grows in this country, much of the freight comes from overseas, leaving us dependent on the re-opening of other countries so recovery may be slow getting off the ground.  When it does, there’s a real fear that after businesses begin to reopen and the demand for drivers climbs that many drivers will simply not return.  

The protesters in Washington, D.C. are looking for fairness, that if load rates are less during this time, freight broker rates will be less too.  They aren’t looking for Congress to step in and do something about the declining rates because, even with all the punches this virus has inflicted on the trucking industry, there’s still the belief that with recovery of the American people, recovery in the economy, recovery of our nation, will come the recovery of the trucking industry.  

Direct Freight Services is a web-based load board that can make finding profitable loads easier.  It has many helpful features like full credit reports, load filtering, payment expectations, and broker authority information.  Whether accessed online or now through our easy-to-use Direct Freight app, Direct Freight helps you find the right loads. Go to DirectFreight.com and start searching for those high-quality loads today!    

The Driver Shortage and Recent Layoffs: Making Sense of It All

driver-shortage-and-recent-layoffs

Despite the shortage in certified truck drivers that has been raging on in recent years, last year brought big numbers in layoffs throughout the entire trucking industry.  Left and right, drivers lost jobs and carriers large and small closed doors. In December 2019, 3,500 truck drivers lost their jobs with a total of 6,600 for the year.  Many that managed to keep their jobs saw  rates slashed.

More Than Drivers Affected

Carriers aren’t only cutting drivers.  Many positions being cut in the trucking industry are administrative and non-driving positions.

The downturn in the trucking industry has a far-reaching impact. Carriers stopped adding to their fleets, purchasing 64% fewer new trucks than the prior year. Popular engine manufacturer Cummins announced that in Q1 2020 it will lay off 2,000 employees, and Volvo Trucks is laying off 700 people in January.

Ups and Downs

The trucking industry has a history of ups and downs, and often where the trucking industry goes, the economy follows. The economy has been on an upswing but a decline in the demand for trucks usually indicates that it’ll soon go the other way. The Great Recession that began in 2008 was preceded by a downturn in the trucking industry in 2006. Unfortunately, this is not a tried and true indicator of an impending recession. While a national recession is almost always preceded by a recession in the trucking industry, the reverse isn’t always true. In fact, the trucking industry experiences twice as many recessions than the national economy so trouble in the trucking industry doesn’t necessarily mean that the country will go through an economic recession.

Slowing in the Manufacturing Sector

Since the trade war with China reached a stalemate and tariffs were implemented, manufacturing has slowed.  Tariffs cost consumers and importers $1.4 billion a month with $165 billion in trade being directed to other countries, demand for goods has slowed and along with it, manufacturers aren’t producing, retailers aren’t buying, so carriers have less to ship.  Jobs up and down the supply chain have been affected.

Light at the End of the Tunnel

Whether such a dramatic downturn will turn around quickly or we just see more of the same for 2020 still remains to be seen.  The hope is that 2020 will bring a light at the end of the tunnel. Talks with China are progressing.  If the US and China come to a deal on trade so tariffs are lifted and the U.S., Canada, and Mexico come to an agreement on NAFTA, there should be an upturn as manufacturing speeds up again to meet the demand, and freight begins to move again.

If you’re a driver who is looking for freight, Direct Freight Services can help you find loads to keep your truck on the road.  Direct Freight Services is a full-service load board that allows truckers to find loads and companies to post their available loads. The Direct Freight website also has many useful features such as a mobile app, mile calculators, fuel price data, weather conditions, turn-by-turn truck-specific routing and more.

To see how Direct Freight can get you back out on the road, go to DirectFreight.com today!

Sources:

https://www.businessinsider.com/trucking-bloodbath-truck-drivers-december-jobs-report-2020-1

https://www.bls.gov/news.release/empsit.t17.htm

https://www.businessinsider.com/cummins-confirms-2000-layoffs-at-truck-engine-manufacturer-trucking-downturn-2019-11

https://www.businessinsider.com/trucking-bloodbath-truck-drivers-december-jobs-report-2020-1

https://cdllife.com/2019/volvo-announces-mass-layoffs-due-to-lack-of-demand-for-trucks/

https://www.businessinsider.com/trucking-bloodbath-ata-truckers-potential-2019-8

https://markets.businessinsider.com/news/stocks/trump-trade-war-cost-americans-14-billion-per-month-last-year-2019-3-1028002357?utm_source=markets&utm_medium=ingest

https://www.npr.org/2020/01/16/797100293/china-trade-deal-a-truce-awakens

https://www.usatoday.com/story/news/politics/2020/01/16/usmca-senate-vote-mexico-canada-trade-deal-replace-nafta/4471596002/