1. Driver Recruitment and Retention

2. Overview Overview/Introduction Recruiting Issues Retention Issues Wrap Up Q&A

3. About Your Presenter Insurance Loss Control Professional from 1987 to 1999 Joined SafetyFirst to focus solely on fleet safety Active Professional Member, ASSE Scorer/Recorder – NTDC/ATA

4. Introduction Attracting “good” drivers and keeping the “best” ones are two challenges that can frustrate managers, but… Without drivers, trucks don’t move

5. Introduction Benefits of maintaining a stable roster of drivers: –Increased Dispatch Capacity –Sales Team Confidence –Safety Team Results Improve Profit not diverted to maintain overhead expenses

6. Introduction – Costs of Turnover Turnover Costs = Cost per Hire (e.g., advertising, agency fees, sign-on bonus, etc.) + Vacancy Cost (e.g. lost opportunity, productivity and morale of other employees providing coverage for vacant positions) + Learning Curve Productivity (e.g., cost to train new employee plus cost of lost business knowledge)

7. Introduction – Costs of Turnover Various worksheets can be obtained or developed to track and analyze turnover costs (this one is from Trincon)

8. Introduction – Not enough drivers Labor pool has been changing over the past 50 years –Average birthrate low (2.07 children per couple) –“Kids” don’t like/respect hard work –Driving not viewed as “career” job –Technology jobs are appealing ($$$)

9. Introduction – Not enough drivers TWIC security screening NAFTA (increasing competition) Language Skills Enforcement Driver Health Legislation Proposals (certify medical exam)

10. Introduction – Company Issues During 2Q of 2008, CAB reports double the number of bankruptcies (970 carriers) This removed 88,000 tractors from the road, and… Scares drivers about job security

11. What’s it all mean? Jack Welch, CEO of General Electric said; “Business is like a sports team; to win, you have to field the best talent”. How about fielding a complete team?

12. Introduction There may be two issues keeping your company from achieving its staffing goals: –Too few qualified candidates arriving at your door, and –Too many ‘veterans’ leaving your company.

13. Introduction Disclaimer: There are no “magical solutions”, no “silver bullets” You can do better, but what works for one company may not work for another You must analyze your current situation and develop your own plan

14. Recruiting Strategies Effective recruiting demands: –Information management, and –Sourcing tactics &

15. Recruiting Strategies Tracking information is critical to getting results and justifying budgets for sourcing

16. Recruiting Strategies Typical questions recruiters ask: –Where did applicants first hear of your company? –Why did some candidates who were completely unqualified apply? –Why did qualified candidates fail to show up, or quit after orientation?

17. Recruiting Strategies How do you track the answers?

18. Recruiting Strategies These answers will provide the direction you need to take to improve your program: –Clearer wording in want ads –Spend more on attractive ads, or hire professionals to help –Cut ads that didn’t work

19. Recruiting Strategies Note: exit interviews may help with recruiting tactics as much as they may help with retention issues –If they misunderstood the job requirements, the ads may need work –If they misunderstood recruiter’s offers, then recruiters may need to revise scripts

20. Recruiting Strategies Sourcing = attracting candidates –Advertising thru various media (ie. newspapers, internet, job fairs) –Recruiting research = getting names and proactively reaching out to them about your opening

21. Recruiting Strategies Advertising –What has worked for your team? –What hasn’t worked? –Can you “fine tune” your efforts at wording, ad placement, painting a picture, using color, etc.? ALSO, check out page 3 & 4 of the handout!

22. Recruiting Strategies Recruiting –The best drivers who are happy where they are presently, do not look for ads or job fairs –Do you attempt to contact them about switching to your company? –Can you attract them with something they value that they don’t have?

23. Recruiting Strategies Recruiting –How do you get names of potential candidates* now? (*drivers who are not actively looking) –How do you approach them with a job opportunity?

24. Recruiting Strategies Re-Recruiting –Drivers who left your company may be worth bringing back (if not fired for cause, etc.) –How do you maintain contact with them after they quit? –Can they be brought back?

25. “Re-Recruitment” After 3 Weeks –Send “If the Grass Isn’t Greener Come Back to Your Roots” postcard After 6 Weeks –Send recruiting brochure with invitation to attend an open house –Follow-up with phone call from member of management team

27. ABC Companies Great part-time opportunities are available for drivers! Call 1-800-555-1212 to apply or go to www.abc.comwww.abc.com to apply online. An Equal Opportunity Employer Joe Smith 100 Street Road Anytown, PA 10000 PLACE POSTAGE HERE

28. Recruiting Strategies - Summary Track your efforts & results Use ads that will be seen by qualified candidates and use wording that works (clear & honest) Recruit drivers who aren’t looking (they may be a good fit by design) See page 9 & 10 of handout

29. Retention Strategies Drivers come in two categories: –Those who’ll stay until the bitter end –Those who start looking soon after orientation ends The difference? –Loyalty/Trust/Expectations Are Met –Pay/Benefits/Expectations Not Met

30. Retention Strategies It would be easy to start rambling off a list of what you “need to do” to keep drivers, but many of these: –You’re already doing –You’ve already tried (and didn’t work) –You’ll try and have mixed results How do we turn options into results

31. Retention Strategies First, ask why they’re leaving Obvious first step, but… –How do you know you’re getting “real” answers? –How/When/Who do you ask? –Do you record and track the results? See pages 5-7 of handout

32. Retention Strategies Driver Surveys (active employees) Formal Exit Interviews (last ditch attempt to retain driver) Post-departure Phone Surveys –Individuals who started training program and dropped out –Employees who left after short period of time

33. Retention Strategies Must be willing to really investigate Don’t settle for the easy answers Its your career on the line – press for details

34. Retention Strategies Common Tactics: –Longer orientation, more detail and time asking questions of drivers –Driver “Mentors” to buddy up with new hires –Progressive training on life issues, how to deal with shippers, etc. –Recognition, bonus, reward plans

35. Retention Strategies Common Tactics: –Driver Support Team (stress relief valve, communications team, newsletters, explain benefits, help get benefits problems resolved while driver is away from home, etc.) –Achievement (job/title progression) or “career path” development

36. Retention Strategies

37. Wrap Up Recruiting and Retention work best when you can “get inside” the minds of your drivers

38. Wrap Up Tracking your efforts and results keep you from making the same mistakes, and can steer you to better results.

39. Wrap Up Recruiting isn’t just about advertising, it’s about “selling” your company as a great place to work without misleading candidates about the reality of your situation

40. Wrap Up Recruiting needs “fine tuning”: –Last year’s ad should be re-written to reflect changes in your company and things learned from exit interviews or driver surveys. –Driver’s needs and wants change, too. Appeal to their concerns

41. Wrap Up Drivers will stay loyally if you identify their concerns/expectations and take reasonable steps to address those concerns or meet those expectations.

42. Wrap Up There are many resources available to provide ideas, sample wording, forms, procedures The handout has comments from safety directors who are current clients of SafetyFirst Talk to your peers, too.

43. Need More? Paul Farrell, CEO SafetyFirst Systems 1-888-603-6987 (toll free)