Fleet companies are facing challenges in the retention and recruitment of drivers at an especially risky moment. Drivers are needed now more than ever before to progress in migrating the shipment of goods, food, medicine, and vaccines globally.
Retention is especially important for drivers, as the current market is tight. The most recent ACT Research For-Hire Trucking Index revealed a Driver Availability Index that significantly decreased to a new low of 16.7 in March, down from its previous low of 23.6 in February.
The most recent data on driver turnover from ATA comes from the fourth quarter of 2020, which reported that for the year, the turnover rate at large fleets averaged 89%, two points higher than the previous year.
While it may be easier to blame the staggering effects of the COVID-19 pandemic, as evidenced by the numbers, this has been a problem for many years.
Compensation programs are frequently discussed to allure new drivers and hold onto existing ones. However, fleets are now starting to utilize other strategies for driver recruitment and retention.
The average cost of onboarding a new driver usually exceeds $10,000 for many companies. That’s why it’s very important to retain their existing drivers to avoid paying this costly onboarding expense.
Modern trucks come with advanced technology, advanced safety features, and less maintenance and repair problems, which means less downtime and breakdowns on the road. This allows drivers to often return home to their families at the end of the day and operate trucks on their routes with the assurance that they will most likely avoid breakdowns on the side of the road.
Fuel management systems also can help, because, with automated supply, the logistics become much more agile: times are shortened and you no longer depend on external factors that reduce business efficiency. Fleet management systems provide everything you need to develop a preventative maintenance schedule, helping you manage maintenance costs.
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