By Bill Thomas, vice president, employee benefits specialist at Woodruff Sawyer
Amazon ships more than 5 billion items in a year worldwide through Prime, it’s same-day, one-day, and two-day shipping option. And that’s just Amazon. Thanks to the trucking industry, which moved 71.4% of the nation’s tonnage freight in 2018, these incredible numbers are possible.
The demands on the trucking industry will only continue to grow as consumers get used to the near-instant gratification of buying with a click and receiving a package at breakneck speed.
And even though there were 7.8 million people employed in trucking-related jobs in 2018, up 100,000 from the previous year, according to the American Trucking Association, the forecast still predicts a growing shortage of drivers (160,000 unfilled driver positions over the next decade).
As such, the industry is thinking of new and creative ways to attract and retain talent. Here are five ways the trucking sector is reimagining the way they find new drivers and keep them satisfied in their jobs.
1. Recruit a new class of drivers
Recent data show about 8% of long-haul drivers are female. Freight companies see this as an opportunity to attract more of this segment, especially since long-haul driving is experiencing the biggest shortage of drivers.
And even though the numbers are low, freight companies are beginning to track this data more and more. The Women in Trucking Association says there’s been a 19% improvement in tracking female drivers and managers, and that means “more companies are actually monitoring these figures and can benchmark with other carriers in the industry,” which is promising.
In addition to women, trucking companies are trying to recruit more military veterans and younger people. For example, some are pushing to change regulations that lower the legal age for interstate commercial drivers, so that people can begin to get into the profession right out of high school.
2. Advance the recruiting process
With a new workforce comes new ways of recruiting. As such, the trucking industry is turning to social media in addition to conventional job boards for better targeting.
Freight companies are also partnering with trucking schools to sponsor CDL training for students. Trucking companies have implemented more thorough pre-employment screenings to review candidates’ motor vehicle records, overall health, drug and alcohol use, and criminal records to hire and retain better employees.
3. Raise pay
The National Transportation Institute reported higher than normal pay in early 2019, and highlighted that signing bonuses continue to be ways that trucking companies attract drivers, but guaranteed pay is on the rise.
Many freight companies use all the weapons in their arsenal to attract drivers, including yearly pay increases, weekend driving pay increases, performance bonuses and more.
4. Make the job easier
What happens after the recruiting process is just as important for job satisfaction. At many freight companies, the onboarding process is evolving to include mentorships, customized programs based on experience, driver family outreach, and prolonged contact with new hires for up to six months.
Advances in trucking are making the job easier. New trucks are equipped with automatic transmissions and safety features that can monitor the road, look out for obstacles or dangerous driving, and even hit the brakes automatically. Not to mention new trucks are easier to operate than ever, cabs are now designed ergonomically, and with autonomous driving on the horizon, many argue this could greatly improve the job of drivers.
5. Enhance benefits
Driver retention continues to be a top 10 concern for freight companies. Early 2019 data show the turnover rate at truckload fleets with more than $30 million in revenue was an astonishing 83%. To put that into perspective, for a company with 100 employees, that turnover percentage would equal 83 employees; for companies with 1000 employees, that would be the equivalent of 830 employees leaving the company.
A comprehensive benefits package including 401(k), health care and paid time off at minimum is crucial in retaining driver employees. But offering good benefits is only half the battle. The right benefits plan structure is key to success in using benefits to attract and retain employees and drivers.
Consider the fact that most trucking companies in the U.S. fall into the “small company” category (100 or fewer employees) as defined by the insurance world. Small companies are subject to receiving their health benefits in an age-banded structure.
“Age banded” means each employee and their dependents get individual rates based upon their age and geographic location. So older employees often face a much greater burden when paying for benefits.
For example, a small company medical plan could cost $300 a month for a 22-year-old but $1,000 a month for a 52-year-old. What’s more, smaller freight companies typically do not pay anything for dependent coverage, whereas larger companies do.
The result? The older driver/employee population at smaller freight companies often leave to join larger employers that offer more affordable benefits. A benefits plan structure is only one part of the equation when it comes to better health for the trucking industry. Increasingly, companies are focusing on the health and wellness of drivers. That’s because the nature of the job presents a specific set of health challenges, including higher obesity rates, sleep deprivation, social isolation, lower life expectancy and more.
Consider the California-based Reset Wellness Co., which released a weight management program specifically designed for truck drivers. This app-based program (called MetaMyo) provides drivers with day-to-day guidance when making food choices at home and while on the road.
Program users are told exactly what to eat, when to eat it, in what quantities and where truck drivers can get the prescribed foods while on the road, for example, which truck stops and convenience stores.
Freight companies can offer these programs to their employees and drivers to improve the overall well-being of workers with the benefit of better performance, decreased absenteeism, and at the same time addressing workers’ compensation issues and rates.
The future of trucking is driver satisfaction
The demands made of the freight industry will only continue to grow. And while the market is thinking of ways to scale, including driverless technology, these ideas are not viable in the short term.
If the trucking industry is going to meet the market demands placed upon it now and in the future, it will have to address the driver shortage issue. Business as usual will not be enough.
Going forward, drivers will be in the driver’s seat, literally and figuratively. Trucking companies will have to do much more in terms of how much they compensate drivers in terms of pay, benefits and other means.
Additionally, trucking companies will need to invest in the health and well-being of their drivers to ensure that they can perform optimally in the face of increased demands.
Bill Thomas is vice president and benefits specialist for Woodruff Sawyer. As an Employee Benefits Specialist Bill leverages his 30 years of industry experience to help clients in the Transportation and Trucking industry find the right combination of benefits solutions for their employees. He passionately believes helping employees to be healthy and happy is good for an employer’s bottom line. Bill has deep experience working within healthcare - including providers and major insurance carriers and has spent the last 20 years advocating for employer customers as a broker and consultant. He has an undergraduate degree in biology from Sonoma State University and a graduate degree in healthcare administration/business from Loma Linda University.
