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Driver Turnover Rate Rises to 90%

| January 3, 2018

Driver Turnover

According to a recent research report, over the last three quarters, driver turnover has risen from 71% to 90% which is a 27% increase for large truckload carriers.  It is still nowhere near the records number of 140% in 2006.  The last time turnover broke 100% was in 2014.

Slightly more than 40% of the carriers expect that driver turnover will remain the same over the first of 2018 quarter compared with 25% who think it will increase, noted Driver iQ.

Looking ahead, there is no consensus about the number of future applicants.  Roughly 40% of recruiters expect that the number of applicants will increase in the first quarter of 2018, while the same number expect they will decrease.

While the industry cannot agree on whether the number of applicants has increased or decreased, they can agree that the average age of the drivers hires has not change changed in the last six months.

Almost 60% of the driver recruiters expect that compensation (pay and benefits) will increase in the first quarter of 2018 compared to last quarter of 2017.  No one expected it would decrease.

Even though 60% of the respondents expect compensation to increase, slightly more than 50% are offering sign-on bonuses.

More than 90% of the fleets surveyed had unseated trucks in the last quarter of 2017, with the majority being between 1-5%.

Even though almost all of the industry is experiencing unseated trucks, over 90% expect to add more tractors (increase capacity) in the first quarter of 2018, with the 60% expecting to add less than 5%.  No one was expecting to increase capacity more than 15%.

The industry is fairly split as to whether they support the concept of younger drivers (ages 18-21) being able to operate in interstate commerce if they trained through an apprentice-type program.

The industry is equally split as to whether they would hire the younger driver coming from an approved apprentice-type program.  In other words, even if they support the concept, only 52% indicated they would hire the driver.

The cost of driver turnover includes not only cost of recruiting – entry administration, fixed asset costs due to idle equipment, and profit loss due to idle equipment — but also the cost of retention such as pay increases, training, seniority benefits and recognition awards.  In the last quarter of 2017, 69% of the respondents tracked the cost of driver retention.

Drivers come from any sources.  But with high turnover, it’s interesting to see where the drivers come from after two years on the job.  By far the greatest source for finding and retaining driver is from referrals.

Category: General Update, News

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