Driver Retention The Nature of the Problem Factors Contributing to the Driver Shortage Potential Solutions to the Problem The Driver Shortage/Turnover

Driver Retention

The Nature of the ProblemFactors Contributing to the Driver ShortagePotential Solutions to the ProblemThe Driver Shortage/Turnover LiteraturePerspectives of Drivers and DispatchersFeedback Models

Driver Retention

The Nature of the Problem

Turnover has Been Approximately 100% for the TL Segment of the Trucking Industry Since the Mid-1980s

Lost Freight Revenue from Vehicles Sitting Idle

The Cost of Driver Replacement is Estimate to be between $5,000 and $12,000 (Probably close to $10,000)

Cost to the Industry is in the Billions

Driver Retention

Factors Contributing to the Driver Shortage

Changing demographics

Failure to recruit women and minorities

Inadequate pay and poor working conditions (long times away from home)

The Motor Vehicle Safety Act of 1986

Driver RetentionPotential Solutions to the Problem

Actively recruiting Women, Blacks, and Hispanics.

Developing closer relations with high schools and vocational schools.

Creating internal career ladders for future drivers.

Placing more emphasis on scheduling techniques that permit drivers to return to their home towns as frequently as possible.

Placing more emphasis on keeping equipment in good condition since this has been found to be an important incentive to drivers.

Cooperative driver training programs that provide free training with commitments to drive for specified times after completion of training.

Developing proactive driver recruiting policies; i.e., on-going programs with active files on interested and qualified drivers.

Increasing Driver Pay

Driver Retention

Pre-employment Screening

Applications

Interviews

Written Tests

Road Tests

Driving Record

Background Investigation

DOT Physical

Driver Retention

Outside Services (i.e., DAC Services, Tulsa, OK)

Computerized Access to State MVR Databases 24 to 48 Hour Turnaround

Driver Work History

More than 2,500 Trucking Companies

Driving and Background Checks

Driver Retention

Look for People Who See the Job as More than Just Driving Drivers Should Reflect the Image of the Firm Drivers are and Extension of the Sales Force

Don't Take Shortcuts to Hiring

Never Lower Your Expectations

Attempt to Hire People for Life

Verify the Information on the Application

Document Everything

Recommendations

Driver Retention

Shortage and RecruitmentTarget Non-Traditional (LeMay and Taylor 1988)Recruiting Techniques (Southern Rakowski, and Godwin 1989)

(Dobie, Rakowski, and Southern, 1998)Driver Characteristics (Beilock and Capelle, 1990)

Retaining DriversIncentives for Performance (Taylor, 1991)Firm Attributes Leading to Retention (LeMay, Taylor, and Turner, 1994)

Driver Satisfaction (Richard, LeMay, Taylor, and Turner, 1994);

Attitudes Toward Management (Richard, LeMay, Taylor, 1995)

Focus on Dispatchers (Keller and Ozment, 1999)

The Turnover Literature

Driver Retention

Results of Exit Interviews

Reasons Drivers LeavePoor PayToo Much Time Away from HomeOther (Approximately 35 %; 20 % related to Dispatcher)

Other Reasons Drivers Leave Dispatchers don’t answer messagesNo praise for doing a good jobLack of communicationDishonest dispatcherNo answer from dispatcher in two monthsDidn’t want to change dispatchersDissatisfied with performance review

Driver Retention

Results of Exit Interviews(Continued)

Reasons Drivers Leave (besides pay & time away from home)

Wanted a transferPoor treatment by the companyUnfair operations policiesSettlement ProblemsTrouble with night dispatcherDispatcher incompetent decision makerUnhappy with dispatcherProblems with dispatcher switchboardUnhappy with changes in runsPoor treatment by customers

Driver Retention

Results of Focus Groups: Perspectives of Drivers and Dispatchers

Group Question:

What are the Most Important Things that a Dispatcher Can Do to Help Retain Drivers?

Top Five Answers:

1. Routing Home2. Better Communication3. Positive and Personable Attitudes4. Provide Miles5. Maintain Trustworthiness

Driver Retention

Results of Focus Groups: Perspectives of Drivers and Dispatchers

Other Issues

Drivers Report Little Interest in Using:1-(800) Hot LinesComment CardsSuggestion BoxesOpen Door Policies

Driver Preferences:Quick and Easy Feedback MethodsEasily Accessible Communication ToolsNo Required Writing

Driver Retention

Research Question

How can a dispatcher increase the productivity of the drivers and keep them satisfied enough to remain with the company?

Why is one dispatcher better at this than another?

Driver Retention

Exit, Voice and Loyalty(Hirshman, 1970)

“When organizations that are largely exit-sensitive encounter voice, it leads to little change in the output of the organization. Voice will either be ignored or institutionalized.”

(Matland, 1995)

Driver Retention

Exit, Voice and Loyalty

Supports the Notion of Employees as Internal Customers

Characterizes Alternative Reactions to Dysfunctional Behaviors of Firms

Characterizes Alternative Responses of Firms

Driver Retention

S-Voice

S-Exit

TurnoverResponsiveness

A Model of Dispatcher Sensitivity, Responsiveness, and Driver Turnover

Driver Retention

Results

Voice is Institutionalized in Many (Most) Trucking Companies

Dispatchers Who are Sensitive to Voice and Who Respond to Voice have Significantly Higher Retention Rates than Other Dispatchers

Sensitivity to Exit Leads to Few Changes in the Firm

Driver Retention

Feedback Models

CBF Models - Complaint-Based Feedback Models

PBF Models - Period-Based Feedback Models

Combined PBF and CBF Models (Periodic Feedback of Complaints)

Driver Retention

CBF Models - Complaint-Based Feedback Models

Complaining Behavior

Immediate Problems

Poor Service

Hotels Restaurants

Police Departments, etc., etc.

Driver Retention


Quarterly Job Reviews

Teacher Evaluations

Wal-Mart Shrinkage

ATCR – Air Travel Consumer Report

Holiday Inn

Driver Retention



Teacher Evaluations

Wal-Mart Shrinkage


Holiday Inn

Driver Retention

U.S. Department of Transportation

Air Travel Consumer Report

A Product Of The

OFFICE OF AVIATION ENFORCEMENT AND PROCEEDINGS

Aviation Consumer Protection Division

1 Data collected by the Bureau of Transportation Statistics. Website: http://www.bts.gov/ 2 Data compiled by the Aviation Consumer Protection Division. Website: http://airconsumer.ost.dot.gov/ 3 Data provided by the Department of Homeland Security, Transportation Security Administration 4 Data collected by the Aviation Consumer Protection Division

Issued: October 2008

Flight Delays1 August 2008 12 Months Ending August 2008 Mishandled Baggage1 August 2008 Oversales1 2nd Quarter 2008 January-June 2008

Consumer Complaints2 August 2008 (Includes Disability and Discrimination Complaints) Customer Service Reports to the Dept. of Homeland Security3 August 2008 Airline Animal Incident Reports4 August 2008

Driver Retention

Table 1: Overall Percentage of Reported Flight Operations Arriving On Time, by CarrierTable 1A: Overall Percentage of Reported Flight Operations Arriving On Time and Carrier

Rank, by Month, Quarter, and Data Base to DateTable 2: Number of Reported Flight Arrivals and Percentage Arriving On Time, by Carrier

and AirportTable 3: Percentage of All Carriers' Reported Flight Operations Arriving On Time, by

Airport and Time of DayTable 4: Percentage of All Carriers' Reported Flight Operations Departing On Time, by

Airport and Time of DayTable 5: List of Regularly Scheduled Flights Arriving Late 80% of the Time or More Table 6: Number and Percentage of Regularly Scheduled Flights Arriving Late 70% of the

Time or MoreTable 7: On-Time Arrival and Departure Percentage, by AirportTable 8: Overall Number and Percentage of Flight Cancellations, by CarrierTable 9: Flight Causation Data, By Airline and CategoryTable 10: Flight Causation Data, Graphic Representation



Driver Retention

Mishandled BaggageExplanationRanking—Month

OversalesExplanationRanking—2ndQtrRanking—January-June 2008

Consumer Complaints (Feedback to the public periodic)ExplanationComplaint Tables 1-5

Summary, Complaint Categories, U.S. Airlines, Incident Date, and Companies Other Than U.S. Airlines

Rankings, Table 6 (Month)Complaint Categories



Driver Retention


Teacher Evaluations

Wal-Mart Shrinkage


Holiday Inn


Driver Retention


Holiday Inn

Drivers

Combining PBF and CBF Models

(Periodic Feedback of Complaints)

Driver Retention


Holiday Inn

Drivers

Combining PBF and CBF Models

(Periodic Feedback of Complaints)

Driver Retention

Driver-Dispatcher Communication Model

Area Manager Fleet Manager 1Fleet Manager 2Fleet Manager 3Fleet Manager 4Fleet Manager 5Fleet Manager 6Fleet Manager 7Etc., Etc., Etc.

Driver 1Driver 2Driver 3Driver 4Driver 5Driver 6Driver 7Etc., Etc., Etc.

PBF/CBF Model

Driver Retention

Area Manager

DriverFleet Manager

Computer


PBF/CBF Model

Driver Retention

Complaint Area 1 Provides Miles Complaint Area 2 Gets Me Home OftenComplaint Area 3 Helpful with ProblemsComplaint Area 4 Respectful Complaint Area 5 Fair Complaint Area 6 Honest


PBF/CBF Model

Driver Retention

Complaints Fleet Mgr 1 Mean

Provides Miles 6 8Gets Me Home Often 7 12Helpful with Problems 6 15Respectful 5 7Fair 11 15Honest 8 15


PBF/CBF Model

Driver Retention




PBF/CBF Model

Driver Retention




PBF/CBF Model

Documents

Driver Retention The Nature of the Problem Factors Contributing to the Driver Shortage Potential Solutions to the Problem The Driver Shortage/Turnover