Recruiting, hiring and retaining enough skilled commercial truck drivers is one of the biggest headaches that transportation companies face today. Finding the right type of candidate is difficult and expensive, as is the need to find a continuously high number of prospects to fill hiring pipelines given the turnover rate that many transportation companies face.
A 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 on Trucks and Trailers
- Monthly Cost of Depreciation on Trucks and Trailers
- Monthly Cost of 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 with driver recruiting software. This software speeds up the recruiting 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 an example of how driver recruiting software works:
Step 1: Prospective driver applies online - The online application interface can be configured to ask only the specific questions required by that business. You could even incorporate that 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.
An automated truck driver recruiting 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 so that HR staff can spend their time on more value-additive tasks.
Interested in more? Watch this video to see truck driver recruiting software in action.
Editor's Note: This post was originally published in 2014 and has been updated for freshness, accuracy, and comprehensiveness.
Microdea is a rapidly growing enterprise software company focused on the development, sale and support of document management and business process automation technology for the transportation industry. Founded in 1995 and headquartered in Markham, Ontario, Microdea serves hundreds of customers spanning multiple countries and a range of transportation fields including rail, transit, truckload and LTL carriers, shipper private fleets, brokers and 3PL.