Without drivers, there is no trucking industry.
The looming driver shortage is a massive headache for carriers, and the impact on the economy could be profound. Is there a way to speed the recruitment of new drivers? With driver recruitment software, recruiters can ensure that applicants are processed as quickly as possible so you can get your offers out to the best drivers before your competition does.
Recent reports from the American Trucking Associations (ATA) show a growing shortage of qualified truck drivers. As well, a past study by the Upper Great Plains Transportation Institute placed the average cost of turnover per driver for all companies in their study at US$8,234. Included in the analysis was the cost of entry and exit administration, fixed asset costs due to idle equipment, profit lost due to idle equipment, and other costs such as insurance, legal and equipment maintenance. These costs included:
- Cost of Advertising
- Staff Labor Costs
- Testing Fees
- Recruitment Costs
- Orientation Costs
- Training Costs
- Referral/Sign-On Bonuses
- Monthly Cost of Interest, Depreciation and Insurance on Trucks and Trailers
- Idle Equipment Formula
- Safety / Insurance / Legal
- Productivity Loss Due to New Drivers
Stated the UGPTI study authors, “Driver turnover has been a major issue in the truckload industry for decades. Turnover rates in excess of 100% are common. There are two types of turnover that happen frequently. The first type is when a person exits the industry – they quit driving. The more common type, however, is when drivers change jobs within the industry.”
One way to cut these costs would be to automate many of the repetitive and labor-intensive tasks associated with the driver recruitment process by collecting applicant information online, compiling and standardizing relevant qualifications, and electronically routing driver candidate documents to the appropriate recruiters for review, processing and approval.
Here’s how a driver recruitment software works:
Step 1: Prospective driver applies online - A mobile-friendly online application interface can be configured to ask only the specific questions required by that business. Short sections, initially asking only basic "lead" information, reduces abandon rates. You could even incorporate the company’s branding to ensure that the application process is a consistent experience.
Step 2: Recruiters review applications in a standardized recruitment portal – this would help ensure adherence to specific hiring policies and standards, plus tightly control the applications in progress by following a structured workflow.
Step 3: Manager approves hiring decision - built-in business process automation tools change statuses, create activities and notifications along with automatically emailing attachments internally and externally.
Automated driver recruitment software reduces administrative overhead through process automation, which decreases labor costs and therefore the time required to recover the initial investment in a driver. In addition, by improving efficiency and compliance reporting, recruiters and other human resources professionals are able to individually manage greater numbers of applicants. Workflow automation speeds up and standardizes the driver recruitment process according to your best practices.
This could all be automated through a single document management system. Tight integration with an existing Transportation Management System would ensure that all systems work seamlessly together. That way, HR staff can spend their time on more value-added tasks.
Interested in more? Watch the driver recruiting software product demo to learn more.
Founded in 1995 and headquartered in Markham, Ontario, Microdea is a fast growing document management and automation software company serving hundreds of customers in the transportation and logistics industry, including truckload and LTL carriers, private fleets, brokers and 3PLs.