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1 THANK YOU TO OUR SPONSORS
2 WORKSHOP 5: Exploring the Data Behind Recruitment & Retention By Lana R. Batts Driver iq
3 Statistics There are three kinds of lies: lies, damned lies, and statistics Mark Twain YET.. Batts Law #1: She who has a number is one up on he who does not Lana Batts
4 COVER FOUR AREAS 1. Turnover 2. Driver Shortage 3. Recruitment 4. Retention
5 TURNOVER
6 Driver Turnover 140% 120% 100% 80% 60% 40% Large TL Small TL LTL 20% 0%
7 Causes of Driver Turnover Healthy economy Strong competition for drivers among trucking companies Better working conditions in other industries
8 USA Unemployment Rate US unemployment rate is at 4.1%. This is lower than the long-term average of 5.8% Source: US Department of Labor
9 COMPETITION IS FIERCE AMONG CARRIERS
10 BETTER WORKING CONDITIONS IN OTHER INDUSTRIES Home regularly Home for special events birthdays, holidays, family events Fewer hours Less stressful conditions weather, other drivers
11 EXPECTATIONS OF DRIVER TURNOVER IS MIXED 45% 40% 41% 35% 35% 30% 25% 20% 15% 24% Increase Decrease Remain the Same 10% 5% 0% Source: Driver iq Driver Retention Survey, Q4 2017
12 DRIVER SHORTAGE
13 60,000+ NEW DRIVERS NEEDED IN 2018 Source: American Trucking Associations, Inc. Truck Driver Shortage Analysis 2017
14 New Truck Orders 77% Higher Than One Year Ago Source: FTR. January 19, 2018
15 Majority of Fleets Have Unseated Trucks 70% 60% 62% 50% 40% 30% 20% 31% Percent of trucks unseated 0% 1-5% 6-10% More than 11% 10% 0% 3% 3% Source: Driver iq Driver Retention Survey, Q4 2017
16 Majority Expect to Add More Capacity 70% 60% 59% 50% 40% 30% 20% 31% No More than 15% 11-15% 6-10% 1-5% 10% 0% 3% 7% Source: Driver iq Driver Retention Survey, Q4 2017
17 Number of New Job Seekers Continues to Decline
18 Overall Wages Have Been Increasing
19 Driver Compensation is Expected to Increase 41% 59% Source: Driver iq Driver Retention Survey, Q Yes No
20 WHAT DRIVER PAY SHOULD BE
21 RECRUITMENT
22 Sign On Bonuses Re-Emerging
23 Use of Sign-On Bonuses is Mixed Sales 49% 52% Source: Driver iq Driver Retention Survey, Q Yes No
24 U.S. Workforce is Aging; Trucking More Average Age for Truck Drivers is 49
25 Average Age of Drivers Hired Has Remained the Same 80% 76% 70% 60% 50% 40% 30% Older Younger Remained the same 20% 10% 10% 14% 0% Source: Driver iq Driver Retention Survey, Q4 2017
26 ATA Supports Younger Drivers 18 year olds can drive Class 8 vehicles intrastate Losing ideal younger OTR drivers to other industries Need 960,000 new drivers over the next 10 years Institute a Federally approved/funded apprentice-type program
27 Industry Supports Younger Drivers 16% 45% 55% 83% Yes No Yes No Source: Driver iq Driver Retention Survey, Q Source: Transport Capital Partners, Q4 2014
28 But Industry Divided on Hiring Younger Drivers 48% 52% Yes No Source: Driver iq Driver Retention Survey, Q4 2017
29 RETENTION
30 Where Do Trucking Companies Put Resources: Retention or Recruiting? 70% 60% 62% 50% 40% 30% 20% 10% 0% 15% 23% Recruiting Department Retention Equal Amounts Source: Source: Driver iq Driver Retention Survey, Q3 2017
31 Yet Not all Track the Cost of Retention 80% 70% 69% 60% 50% 40% 30% 31% No Yes 20% 10% 0% Source: Driver iq Driver Retention Survey, Q4 2017
32 Costs Included in Retention 35% 30% 33% 30% 25% Other 20% 15% 10% 10% 13% 13% Don't Know Seniority Driver Benefits Training Incremental Pay Increases 5% 0% Source: Source: Driver iq Driver Retention Survey, Q3 2017
33 Who Owns Retention? 35% 33% Other 30% 25% 20% 15% 10% 5% 0% 5% 1% 17% 27% 10% 7% Don't Know Driver's Direct Supervisor Human Resources Operations Recruiting Driver Retention Specialists Source: Driver iq Driver Retention Survey, Q3 2017
34 Direct Managers Impact Everyone who has contact with a driver was the most common comment If everyone owns it, is it really owned? YET Individual Managers have the highest impact on retention* 75% of a manager s action (or inaction) is the underlying cause of employee turnover Key managers have the closest relationship and are best able to identify employees who are likely to leave Key managers have the tools and approaches to prevent a flight risk *Source: Dr. John Sullivan. Want Managers to Focus on Retention Show them the $ Impact of Turnover January 2017
35 Best Sources for Retention after Two Years 70% 60% 59% 50% Job Fairs Don't know 40% Advertising 30% Job Boards Rehires 20% 10% 3% 7% 7% 10% 14% Trainng Schools Referrals 0% Source: Driver iq Driver Retention Survey, Q4 2017
36 Job Hopping ERE* found that 32% of employers say they expect employees to job hop Outside the trucking industry, the average tenure is three years Job hopping is becoming the norm across all industries Millennials appear to be on the Job a Year Plan Source: *ERE Media: An Industry leader in recruiting news
37 Average Tenure for Driver iq Clients Drivers Five of More years Four Years Three Years Two Years Less than One Year 0% 5% 10% 15% 20% 25% 30% Source: Driver iq Driver Retention Survey, Q3 2017
38 Average Tenure in Driver iq s Termination Records 60% 50% 40% 30% 20% 10% 0% 1 day to 6 mo 6 mo to 1 yr 1 yr to 3 yr 3 yr to 5 yr Over 5 yr Source: Driver iq Previous Record of Employment Database
39 OBSERVATIONS Statistics don t paint a pretty picture across the recruiting spectrum Industry views don t always track with national data The fastest growing and youngest population is Hispanic, which presents a tremendous opportunity for the industry Current and past drivers should be a focus for retention
40 Q&A
41 THANK YOU TO OUR SPONSORS
THANK YOU TO OUR SPONSORS
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