Driver recruitment & Retention workshop

1. Driver recruitment & Retention workshop January 19, 2012

2. Background • Former Chair • Wisconsin Council Safety Supervisors • Member: • ATA Accident Review Committee • ATA Claims and Loss Prevention Committee • WCSS – Truck Driving Championship Committee • WCSS – Accident Review Committee • Instructor: • TCA Recruiting & Retention • Driver Score Card • WCSS Risk Management • WCSS Recruiting and Retention • Graduate Indiana University School of Business • Driver • Dispatcher • Operations Manager • Small Business Owner • Sales Fortune 500 Company • Risk Manager • Associate Vice President • HNI Risk Services • Chair: • ATA Recruiting & Retention Committee • WCTC Advisory Committee

3. Rules of the Game • Deposits and Withdrawals • The Power of a Team/Group Participation • Confidentiality • Avoid Side Conversations • Cell Phones on Vibrate or Off • Will Take Plenty of Breaks • Be Team Players • Sharing of Ideas • End on Time

4. Who Will Provide the Most Valuable Information Today • YOU! • Please Don’t Hesitate to Participate and Share Ideas

5. Self Introductions • Let’s take a few minutes to get to know each other. • Name • Company • Title • Biggest challenges on their job • Any other information you may be able to obtain

6. Expectations • What Are Your Expectations From This Workshop?

7. There is No Magic Answer • Recruitment and retention success involves a lot of issues.

8. Driver recruitment • Introducing Paul Malecha – TWM4U • Guest Speakers from Randal Reilly; • Derrick White – Sales and Marketing • Kyle Jernigan – Web Design

9. Driver recruitment This morning we will cover: • What Was the Old Way? • The Start of Old’s Transition to New • What Changed • Company Drivers Connectivity • New Channels • Advantages of New Channels • Outcome • Metrics That Drive Your Business • What Does All This Mean • Where Is it Going?

10. Is it Recruiting or Retention • The answer is yes! To both…However companies who have controlled their turnover recognize that closing the back door is as important (if not more important) as opening the front door. If you retain drivers, then recruiting becomes much easier.

11. Driver retention

12. 20/60/20 Rule • What is the focus of your company?

13. Where Are the Good Drivers • Good Drivers Want to Know… • Where Are the Good Companies? • What Are the Traits of “A GOOD COMPANY?”

14. Why Do “Good Drivers” Quit • Focusing on the top 80%… • Why do “good” drivers leave companies?

15. Why Do “Good Drivers” Quit • Pay? • Miles? • Home Time? • Equipment? • Benefits? • This may be what they say, however, it may not be the most important issue…

16. Pay • Pay is bait…without a competitive pay package you will not attract drivers. However, pay is not the primary reason that a driver leaves his/her employment. • In fact, once a driver starts working for you, there is a good chance that he/she never sees their pay check.

17. Miles • Is it miles or proper use of the drivers time? • When a driver says “I’m not getting enough miles” what is he/she really saying? • Most companies adjust pay to miles. If they haul more short haul freight they will pay more per mile and more for stops, whereas if their freight is more long haul the mileage /stop rates will be lower. • Is it lack of miles or downtime that is the actual issue when a driver says he / she is not getting enough miles?

18. Home Time • Home time is an important issue. However… • Statistically a driver who is an over the road driver, is not happy working short haul. Whereas short haul drivers are not happy working over the road. • Is the issue the amount of home time or is it making sure the driver receives the home time he/she was told they would receive? • What does “you’ll be home weekly mean?”

19. Equipment • Equipment is important, however, most carriers have good equipment.

20. Benefits • Benefits are important for a drivers family, however, drivers did not rank lack of benefits as a high priority for leaving their current job.

21. Why Do “Good Drivers” Quit • According to the Upper Great Plains Transportation Institute…the major reason a driver leaves his/her company is due to lack of job enrichment. This has been broken into 3 moderator’s: • Knowledge and skill • Need for personal accomplishment, learning and self improvement • Context satisfaction

22. Knowledge and Skill • Knowledge and skill, refers to the ability of the individual of the individual to do the job correctly and efficiently. Obviously if the individual does not possess the necessary knowledge and skills, they will perform poorly and most likely react negatively to the job.

23. Need for Personal Accomplishment, Learning and Self Improvement • Relates to the psychological needs of drivers for personal accomplishment learning, and self improvement. It refers to intellectual/skill attributes that allow the driver to perform well. (Drivers who do not exhibit a need to personally grow as part of their job would perform poorly in any job)

24. Context Satisfaction • This refers to the extent to which individuals are satisfied with specific aspects of their work

25. Let’s Review Each of These Areas, Starting With Skills and Knowledge • How well to you educate, train, and retrain drivers? • Orientation • Employee meetings • One-on-one performance evaluations

26. Need for Personal Accomplishment, Learning and Self Improvement • Do you provide the opportunity for your drivers to receive recognition for personal accomplishment? • Does your company provide the opportunity for advancement (for drivers) within your organization? • What does advancement for drivers mean?

27. Advancement • Possible areas for advancement for drivers: • Advancement within the driver fleet* • Into the office • Own their own unit • *Refer to handout from Driver Retention Strategy

28. Advancement • According to UGPDI: • 83% of drivers indicated that career advancement was “somewhat” to “very important” • 54% of drivers perceived opportunities of advancement in their company was “poor” or “very poor.” • “A large majority of drivers prefer some form of advancement as a driver as opposed to moving to a different job in the company. As a result, it is probable that a lack of a career path encourages drivers to think about quitting and/or searching for a different job”

29. Context Satisfaction • Drivers want to feel satisfaction with specific aspects of their job. They need feedback on their performance.

30. What Does All This Mean • Drivers need to have a feeling of accomplishment. They need to have the opportunity to “move up” in an organization. If this is not available in their current job, then there is no motivation to stay. • What are the opportunities for advancement in your company?

31. Problem Areas for New Hires • Orientation • Working with Dispatch • Learning a new system • Meeting other drivers

32. Orientation • What is the purpose of your orientation? Is it just to get the paperwork done, or do you recognize that this is your opportunity to share your culture with your new hire? • What are your goals for orientation? • Does your company recognize the importance or orientation, or is it “a necessary evil?” • Do your drivers “feel important” during orientation, or do they feel “they’re in the way?” • Who is involved in your orientation process • What is the “buy-in” from other departments with regards to orientation? • When does operations get involved with orientation and what do they do? • What is ownerships role in orientation • Is what you present in orientation in direct correlation to what recruiting has told your new drivers? • How do you measure your orientation process?

33. Post Orientation • What processes do you have in place for post orientation? • Special dispatch fleet • Mentor program • Meeting with driver after first trip • Regular follow-up meetings to ensure new hire has a comfort zone with organization

34. Working with Dispatch • What is the accountability with operations for driver turnover? • Do they have “skin in the game?” • Are they part of the process with regards to establishing protocol with regards to new hires? • Are new hires just part of the regular fleet or are have you developed a special dispatch system for them? • How does dispatch know what was the agreed “home time” policy for the new hire? • Do you have a process in place to measure home time? • What is your process for ensuring that the drivers expectation for miles is not only met, but also meets the needs for your company? • Have your drivers been trained on dealing with different personalities? • What measurements are in place for dispatch to use to ensure driver is successful? • Is dispatch held accountable for driver turnover?

35. Learning a New Job • What are the challenges of learning a new job? • Let’s take a few minutes and discuss this as a group

36. Meeting Other Drivers • What do you have in place to ensure that once a driver has joined your organization, he/she has the opportunity to identify drivers who are successful in your organization? • What happens when your new hire meets the rest of the fleet?

37. What Do Your Drivers Think (Say) About Your Company • What is the “perception” of your company to your own drivers? Are you really “different” or are you “just like all the other companies?” • Driver surveys • Participation in your process development • Sharing of information • Mentoring program • Do you ask their opinions?

38. Driver Surveys • Let’s Take a Few Minutes to Discuss Driver Surveys, Then as Teams, Let’s Develop a Driver Survey

39. Participation in Your Process Development • What is the involvement of your drivers in the development of your processes? • Is the “perception” that they are part of the company or is the “perception” that it is just talk?

40. Sharing of Information • Do you share information with your drivers?

41. Mentoring Program • How many of you have “mentoring” programs for new hires and drivers who are having problems? • How do you decide who is going to be a mentor? • How do you measure the mentor’s performance?

42. Opinions / Ideas • What processes do you have in place with regards to getting driver’s ideas and opinions? • How good is your follow up in this area?

43. Recognition of High Achievers in Your Fleet • Pro’s and Con’s of a “driver of the month/driver of the year” program • Objective vs. Subjective measurements • High achievers clubs

44. Training of internal Staff It is important that all employees within your organization are well trained and educated when it comes to dealing with drivers. What is the chain of command in your organization? Does everyone know and follow it? What happens when an accident or a problem with a shipper occurs in your organization? What happens when a driver has a problem? Do these receive the same amount of attention and focus? Should they?

45. Accountability • Who is responsible for driver turn over? • Who is ultimately held accountable for driver turnover? • Who should be held accountable for driver turnover? • How do you measure and communicate driver turnover information?

46. Understanding Who Your Dealing With, Will Help Recruiting and Retention

47. Are All Personalities the Same • It is not unusual for people to think that we all think alike. • “If we treat everyone the same, then everyone will react the same way” • Is this true? • Let’s do some personality training.

48. Being a Player? Being a Coach? Which is easier

49. 4 Basic Types of Personalities • Good Friend • Accountant • Entertainer • Boss

50. 4 Basic Types of Personalities Family/Friends Entertainer Good Friend High Risk Low Risk Boss Accountant $$$$$$$