Demographics
A variety of reports and anecdotal information confirm that the average age of commercial drivers is fifty nine years old, older than the average age in many other sectors of the U.S. workforce. There is approximately 170,000 school bus drivers with evidence that post-Baby Boomer generations, particularly those now in their twenties and early thirties (i.e. “Millennials”), are not entering the industry in sufficient numbers. Thus, as older generations (e.g. the Baby Boomers) enter retirement, an even larger driver shortage may begin to emerge.
Driver Retention
Transportation is the only American industry that regularly accepts 60, 70 and even 100 perfect employee turnover. If the manufacturing sector operated at the same level of employee retention that transportation does, there would no goods for truckers to haul to market. In spite of the high cost of driver replacement, the industry as a whole has done very little to address the issue. Consequently, a large portion of the profits of the industry is spent on replacing drivers. Many fleets have as much as 25 percent of their equipment out of service while the company looks for replacements for drivers that have quit. Production is down, profitability suffers and poorly qualified drivers are hired as stopgap measures. None of these situations is acceptable, and yet the industry continues to suffer. In order to improve driver retention, the underlying causes of driver dissatisfaction must be understood and solutions must be sought. The recent pandemic has shown a “Bright” light on escalating deficiencies.
This situation is further exacerbated when applied to Special Needs School Bus Drivers who are a “Constant” in the life of families with critical transportation needs requiring reliability, and consistency. Consequences of high driver turnover to these families can be both life altering, and life threatening!
How can you keep your good commercial drivers?
All companies continue to experience a lack of available qualified drivers while cargo volumes increase, and schools continue to reopen post pandemic. The industry demand is putting the squeeze on all resorting to paying top dollar or recruiting inexperienced drivers, both of which are not ideal solutions to the problem.
Maybe the best question is not ‘how can we find more drivers?’ but ‘why can’t we retain the good ones we have?’ This makes perfect sense when recruitment and training costs for each new driver is estimated at between $5,000 to $10,000, and the chances of being involved in an accident are considerably higher as workers ‘learn the ropes’ in their new position.
So how do you retain your good drivers?
Studies placed the average cost of turnover per driver for all companies at $8,234.00. Depending on who you ask, the cost of hiring a commercial driver can range from $2,000 to $15,000 per driver. A study from Upper Plains Transportation Institute found an $8,234 average cost per hire between 15 different companies, but that was also in 2001. If we account for inflation, that equals about $12,719 in 2021. These costs included:
- Cost of Advertising
- Staff Labor Costs
- Testing Fees
- Recruitment Costs
- Orientation Costs
- Training Costs
- Referral/Sign-On Bonuses
- Monthly Cost of Interest on Vehicles
- Monthly Cost of Depreciation on Vehicles
- Monthly Cost of Insurance on Vehicles
- Idle Equipment Formula
- Safety / Insurance / Legal
- Productivity Loss Due to New Drivers
“Driver turnover has been a major issue in the commercial driver industry for decades. Turnover rates in excess of 100% are common. There are two types of turnover that happen frequently. The first type is when a person exits the industry – they quit driving. The more common type, however, is when drivers change jobs within the industry.” In either case it is accentuated when you include the pandemic related issues.
What Incentive Works?
One way to cut these costs is by offering an incentive that best guarantees commitment, and retention. The Family Transporter program offers a premium salary, student loan debt forgiveness, and a college scholarship for a committed driver. The scholarship is available to the driver to utilize for their own degree/career goals, or that they can obtain, then provide to the benefit of a family member’s education. College is a costly dream for most, and is increasing in cost. This is a “One of A Kind” incentive that can be obtained through a Special Needs School Bus driver’s invested time, and commitment in driving.
Retention Agreement
Customized on case by case basis. Student Loan Debt Forgiveness, and College Scholarship Credit earned based on agreed period of time committed to driving the vehicle.