[ad_1]
In the ever-evolving world of trucking, the American Trucking Association keenly provides updated reports as the truck driver turnover rate appears to be on the rise. Surprisingly, this increase is seen as a positive sign for the industry. The ATA explains that the rise in turnover can be attributed to higher freight volumes and tighter regulations like the CSA, which necessitate the need for more capable drivers.
Historically, turnover rates in the industry have averaged over 100%. However, the latest figures for the fourth quarter indicate a drop to 88%. Notably, this dip can be linked to the slow recovery of the economy. Experts, however, anticipate a rise in this percentage as volume and regulatory changes persist.
The ATA and motor carriers actively advocate for a higher driver turnover rate, as it serves as an indicator of a thriving freight industry. Additionally, they believe it convinces the FMCSA and policymakers in Washington that further regulations like NAFTA are imperative to address the shortage of qualified drivers in the United States. Regrettably, the national media, lacking a comprehensive understanding of real-world trucking, unquestioningly accepts and publishes this rhetoric as serious trucking news.
The turnover rate among professional truck drivers, especially those engaged in long-haul operations, is verifiably high. This is evident as drivers frequently leave one motor carrier to seek better job prospects with another. The media often portrays this phenomenon as drivers seeking improved pay, greater mileage, and more favorable home time, thus creating a purported driver shortage problem and an associated dilemma with driver retention. However, the problem lies in the fact that most major motor carriers operate using similar practices. Consequently, for the drivers, the grass is rarely greener on the other side.
A striking example of the industry’s manipulation is the requirement set forth by the U.S. Department of Labor for the cross-border trucking initiative. U.S. motor carriers had to demonstrate a scarcity of qualified domestic drivers willing to perform the work at the current wage to be eligible for foreign labor certification. This was easily achieved by motor carriers paying meager wages and exploiting student and inexperienced drivers for cheap labor, resulting in drivers sitting idle without pay while waiting for freight and enduring prolonged waits at shipper and receiver docks without compensation.
As drivers left their positions, the industry was able to point to this loss as evidence of a driver shortage. Additionally, as the CSA gained traction, it served as proof of a poor driver retention rate as numerous seasoned drivers permanently exited the industry, not solely due to the CSA, but because of the actions of the motor carriers mentioned earlier. All it took was for the major trucking organizations to declare to the media that the United States was facing a crisis of driver shortage and retention.
In this industry, trucking news outlets, both print and online, are always eager to highlight any perceived crisis. Unfortunately, many of these outlets are controlled by the very organizations propagating the rhetoric. The national media, lacking real-world expertise in OTR trucking operations, unknowingly amplifies these stories by listening to the wrong messengers.
The truck driver retention rate has become a widespread concern, prompting major news sources to react in search of a real solution to this problem supposedly caused by drivers. One business article asks:
“Turnover includes voluntary as well as involuntary leaving. It is crucial to identify the factors driving drivers to switch jobs and then ascertain how the trucking industry can stem this colossal waste of effort and money.” (Source: Business Library – Driver Retention Solutions)
For each driver that decides to quit, there are an astonishing 50 uninformed rookie drivers eager to take their place. Furthermore, for every driver that leaves, there are 25 experienced drivers scouring for greener pastures. This continuous job-hopping has allowed the industry to create a crisis that the media and the public believe is solely caused by drivers. However, it must be acknowledged that the drivers themselves are not to blame for this situation; rather, it is the motor carriers who create and control this so-called driver shortage and subsequent truck driver retention rates.
Driving this point further, the International Journal of Physical Distribution and Logistics Management, a reputable business journal, presents cutting-edge information and practical business solutions for the industry. In Volume 37, Iss: 8, pages 612 – 630, a report entitled: “Truck driver turnover: what rate is good enough?” authored by Yoshinori Suzuki, a PhD and esteemed expert in Motor Carrier Management, offers a tool for motor carriers to determine the ideal truck driver shortage/retention rate for their company.
This comprehensive report includes:
- An innovative tool that allows motor carriers to decide if they need to reduce their truck driver turnover rate and, if so, by what percentage.
- A model that utilizes statistical and mathematical equations to establish the desired rate for a specific carrier.
- Results that indicate this tool is applicable for any motor carrier, irrespective of their drivers’ job-hopping behavior.
- Conditions that enable motor carriers to use the determined optimal rate as a benchmark for reducing or decreasing driver turnover.
- This tool is of utmost importance as it assists motor carriers in accurately identifying the “ideal” rate that they strive to achieve. (Source: International Journal of Physical Distribution & Logistics Management)
The industry often presents the truck driver shortage and driver retention problems as two distinct, major issues when, in reality, they are interdependent. One can argue, “There is a truck driver shortage because we cannot retain drivers,” while another asserts, “There is a driver retention problem because there is a truck driver shortage.”
This complex situation serves as a Pandora’s Box through which the industry strives to push regulations that further strengthen the prominence of major carriers, maintain the classification of drivers as unskilled labor, and perpetuate their financial hardships.
The industry and the media consistently depict professional CDL drivers as incessant job-hoppers responsible for creating two detrimental situations in the trucking industry. However, the truth is that the industry itself has mechanisms in place to actively control both driver retention and the driver shortage rates.
[ad_2]