In 2011 driver turnover rates in the for-hire trucking industry went up over 90% and it’s been over that benchmark ever since. It even on occasion went up over 100% which is why it’s so surprising that the in first quarter of 2015, it plummeted a jaw-dropping 12% down to 84%. The most interesting part? No one seems to know why.
Even the American Trucking Association is scratching its head as to what happened.
“Clearly, the decline in driver turnover in the first quarter was significant,” said the ATA’s chief economist, Bob Costello. “But what is less clear is why it dropped so much and whether turnover will continue to remain low.”
To try to understand why it dropped, and whether it will stay low, we have to look at turnover rates in the past.
Traditionally, trucking has been an extremely high turnover industry but in 2009 when a weakened economy had freight levels low, the turnover rate was at one of its lowest levels ever at around 50%. Freight was scarce and jobs were tough to come by, so truckers who had jobs tended to stick with them.
As the national economy has been improving however and freight levels have been on the rise, so too has the driver turnover rate. Carriers went back to offering signing bonuses and using whatever tactics they could to fill their empty vehicles. With this, driver “churn” went up (drivers leaving one carrier for another), bringing the turnover rate up with it.
So if the turnover rate has dropped by as big a number as 12% in the first quarter of 2015, what happened?
In an interview with the Wall Street Journal, Costello is bold enough to say that “something probably happened that quarter,” but falls short of stating what it is, saying that “Before I really make any profound judgments on this, I want to see what happens in the second quarter.”
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Source: gobytrucknews, truckinginfo, joc, wsj, ajot
Image Source: datesofasia
BASEBALLbat says
This is the greedy population in America not wanting to spend any of their large savings, thus causing the lower working class to work harder for income, and / or making less money, and / or increasing bills, (rent, utilities, groceries, home payments, etc.)
It is just a lack of a place to go, and a fear of becoming homeless and jobless that is fueled by a economic manipulation to keep money flowing to the wealthy business owners, that causes drivers, and other workers in other jobs to keep working for companies they don’t want to work for. Lack of options would best describe it.
Tinfoil hat please…
madcracka says
He’s right you know
BASEBALLbat says
It will come back up when the money starts moving again. 🙂
SirByrd says
Companies improved pay while HR and Dispatch lied less… It ain’t hard to figure.
Matt Crawford says
It went down because I quit switching companies. If they don’t know why it went down it’s because they’re math is flawed.
Timothy W Lucas says
Add me to the turnover rate. I got enough and moving on to a company that pays $20 an hour after the first hour adding some value to my life and more driving time for sure. I got 5 years to go if I make it. Just hoping to quit after 41 years as I’ve certainly had enough. Do-daw Do-daw.
Nat says
I for one just quit my job for safety reasons. Companies are cheap and don’t give a dam about their drivers or their trucks. Some are just getting out of the transport driving all together. Companies work us like dogs and feed us scraps while they rack up the money.when will it end
Jean says
Companies have raised the cents per mile. My husband is still looking for a better trucking job with insurance. It is amazing the number of ways JB Hunt won’t put who they are on an ad. We apply to ads and guess who has called us countless number of times JB Hunt.
Don’t they understand if they paid more and consistantly he would stay? Instead of offering thousands of dollars to work for them why not start paying their drivers more so they stay?
Wife of a trucker
royce dressel says
Because orientations have gotten down right lethal. All the cr@p a driver has to take to get a new job is unreal, and it isn’t making the highways any safer. The reason I have not changed lousy jobs for a year is because I’m saving up to get out of this all together . I bet I’m not the only one! Also, you have finally beat me down . You win. I’m just an animal in a harness now. Don’t stand to close to my rear, you might get kicked in the head!
Mark says
I can tell you exactly why. The oil boom is over and a LOT of CDL holders are leaving the oil field and getting back into a road truck and need to put in some time before jumping to another company. By the 1st quarter of next year you will see the turnover rate go right back up right along with the increasing driver deficit.
K100E says
I’m thinking the big company’s are now looking at there CSA scores. All the newbie drivers they slammed on the road are costing them points. Which doesn’t make them look good. So it’s not the drivers staying at jobs. It’s the company’s not firing them so they can put a new driver in the seat with beginner pay. All the large companies exploit newbie drivers. Once they reach a year employment, they fire them for the smallest thing. Then comes the newbie with less pay. I never applied to any of them. Did my homework for a year before starting back in 2002. I’m now with Bay and Bay for almost 2 years. Have 4 years more to go before retiring. Try Bay and Bay company driver. Do not lease off them, I’ve heard bad stories with leasing. They’ve been good to me so far. Tom F.
mike says
Companies like the big E which is private company which I was employed. I believe started to fire to control costs , in what I believe is due to mismanagement. I actually witnessed my superiors lie in a uc court during a terminated employees hearing. This is another reason for the increase. Mostly from what I surmise politics in that company determine employment, doing you job in no way guaranteed employment. I ve seen them terminate the victim of an assault even with witnesses that saw the altercation. Due to what I seen as politics .
Ed says
Maybe it’s because we are starting to see that moving to almost any other company would just be SSDD. Why move for no gain. And with what the govt is trying to do with these new mandates coming, there won’t be turnover in the industry, there will be exodus from the industry.
Mark says
There’s been a rash of raises across the truckload sector, would hardly surprise me if people were either 1) slightly more content with their current carrier, or 2) staying put to see who else jumps on that bandwagon in the next quarter or so.
Wouldn’t surprise me if oil sector losses are influencing this too. Fewer drivers leaving to visit the fields, and the ones who left over the last half year are enjoying working less than 100 hours/week.
Mike says
Alot of companies gave their drivers pay raises last year and wages for drivers went up accross the board. They also adopted we care about our driver campaigns to boost moral. An 85% turnover rate is nothing to celebrate it is still obscene. The subculture behind the drivers has not really changed but a better illusion is being portrayed. The bottom line is that it will always be the bottom line that matters to management. Many drivers today feel they are more important than they are by these ( you are important, you make our company great) slogans tossed about by management. The truth of the matter is unless you are a owner operator operating under your own authority and working directly with brokers you are just another cog in the wheel and the sooner you come to terms with that the saner you will be. Behind he scenes are sales people that seek out new accounts and nurture established accounts for increase access to freight and better freight prices. Load planners that calculate profit margins and available assets to move product based on time restraints, drivers hours, drivers delivery history, drivers enforcements and criminal records , drivers pay rate etc etc. Then dispatchers or the latest name given to them ( driver managers) so they feel important because get this dispatchers turn over rates are over 52% also high. Then you have safety and compliance, legal analyst, accountants, training , human resources, mechanics, parts departments, its a very complex mixture of business professionals that makes up any fair size trucking company.
Bob says
Less and less drivers were falling for and getting tricked into leasing at C. R. England for the first quarter of 2015.
Infosaur says
Figures, that was the same period I left my longtime company for a new one, got fired and ended up at a 3rd outfit.
Bucking the trend again.
Matt Chase says
It seems that this 12% decline is due to the new crop of drivers coming in who have put forth effort to stick around and remain in their respective first job as an entry level driver. Reason for this in my opinion? More and more of our professional and seasoned drivers have seen the catastrophe that awaits the industry with this driver shortage problem. They have been rallying to the cause. With the help of social networking and hands on training, the message of ‘professionalism’ is getting through.
Angelo D says
It’s quite simple. It’s that old, but ever truthful cliche that ” Once bitten , twice shy.”
This IS the second time around and truckers, being bred on pure, unadulterated commen sense ” Learn to Be Still” if their apple cart is stable. I am certain, by this article, that “Common sense” will soon become a marketable form of training or curriculum.
Don Dierdorff says
Maybe it’s the wonderful working conditions. LOL.