driver turnover rate

Now a primer on 'starter' companies.
First and foremost, they are not there to move freight and make money from freight.
They are there to train new drivers.
Their business model is to bring in new, inexperienced candidates, give them a modicum of training, then set them out to find a job as a truck driver.
Not unlike a CDL school, whose business ISN'T to train you to drive, but rather train you to get a CDL.
There is a lot of government money available to train drivers. The same theory as giving money to colleges so they can 'educate' students so they may become successful taxpaying workers, the government gives money to starter companies to 'train' candidates to become drivers and become successful taxpaying workers. In general, one is white collar, the other blue collar.
We use to have apprenticeship systems to train a blue collar tradesman. That is largely abandoned, as it depended on the manufacturers to spend the time and money to train someone.
But some years back, some smart thinking people discovered they could convince the government it was in their (the government's) best interest to spend money to train workers to be tax producers.
The government gives lots of money to all kinds of education systems, one of which is the trucking industry.
Anyone that has been thru a 4 year college degree program (or more, like me) will tell you that most of the kids in there don't belong. They are going thru the motions because 'it's the right thing to do'.
Well truck driving is no different. Most that enter into the field have no idea what's involved and haven't a clue on how to do it. And once they get a taste of it, they abandon it.
Many companies require 'college degree' to get a job, but the degree doesn't have anything to do with the job.
Take myself for instance. I have an undergrad degree in ancient language and history, one in business management and a masters in physics.
But I now dispatch trucks. (drove for years)
You can take a degree in basket weaving to many of these jobs and be hired because they require a degree.
But take a 4 year 'apprenticeship' in truck driving to almost any other industry and they'll shrug their shoulders.
Starter companies, just like colleges, want bodies because it means money.
They have no intention of retaining drivers. They only want enough that hang around long enough to train the new (er) drivers.
I would fathom to guess that most persons that do that actual training and run the programs at these companies have good intentions and try very hard to do a good job. But ownership is driven by government guidelines and profits, so often they are hampered.
Most training companies turn out good drivers.
But all of them turn out a huge amount of failures.
Failure being defined as someone who abandons the industry within 2 years.
Why?
It's not the way they train. It's a combination of vetting a candidate and how this whole industry has become.
Their profits, just like colleges, is determined by running X amount of persons thru the program and receiving money for each one.
Yes, they make profit from freight as well, but they are not in business to move freight as a primary model.
They are in business to train new drivers, then send them on their way. Just not as kind and gentle as Harvard, Iowa State or UCLA.
I don't think anyone would argue that you'll make more money with a 'secondary' or true freight company.
They don't have the expense of training and combing thru new drivers. (and trust me, there is a LOT of expense with new drivers!)
So they can pay more and offer better benefits. But their business model depends on cost containment and there is a fine balance between driver cost and retention, especially in a rabidly competitive environment such as the present economy.
I have driven for many years, owned a small fleet as well as manufacturing concerns and for reasons I don't need to go into on this forum, found myself starting over late in life at a starter company.
I'm still there.
I am shocked by what I see in driver candidates, but realize that we, just like all the rest of the starter companies don't care if you become a driver. We only care that you complete our training program and we collect $7,200 from Uncle Sam as well as assorted other fees for special programs such as training foreign workers entering this country.
I believe we have an excellent program for those that are serious about becoming a professional driver. As do others.
But I'm not foolish enough to believe it's a long term thing. 98% of new drivers leave us within the first year. 96% of those that are left, leave by the two year mark.
but would you trash Yale because 98% of their students are gone within 4 years?
Find a training company that fit's your needs best, learn what you can, then move on to a company that needs good drivers.
There aren't a lot of experienced drivers that come to the company where I work, but there are a lot of good experienced drivers out in the field that got their start at this company.
And by the way, before the flamers decide to trash me for 'what's right', let me point out that morality and what makes money are often at opposite ends of the spectrum. If you're in business with a primary goal to make money, morality is often a casualty. If that were not so, I would still be fat, dumb and happy running my company in San Diego.

 

" If you're in business with a primary goal to make money, morality is often a casualty "

Long read - Emulsified, for my fried little trucker brain, but I hung in there on the 41 year experience claim. And well said.

I would only add that these companies expand further on the model by then coercing the drivers into lease purchase programs - and the failure rate on those is, well - another thread.

 

What company do you currently work for?

 

I loved this. The perfect example of truck driver over exaggeration. According to this, 100-210% of the drivers that work for starter companies, are replaced for whatever reason. Which of course is mathematically impossible. Besides, every starter company has employees that have stayed there for years. You can find drivers, at JB, swift, Schneider, etc that are either happy where they are, or content enough not to look elsewhere. I saw a post here somewhere that said looking for a cdl job boils down to 3 things. Good pay, good equipment, good home time. Pick two of the three, because you can't have it all.

If I was giving advice to someone considering this as a career who had never done it before, it would be this. If at all possible, find a friend or relative who is out here, and go with them for a month. When that driver is in the drivers seat, be in the passenger seat. Now, if that suits you and you think you can do that without that other person to talk to, you might like it enough to deal with all the bs that goes with the job.

I know this wasn't part of you original question, but didn't want the grumble pots to scare your husband off the starter companies. Many of us got our foot in the door that way. And while most of us did move on to greener pastures, some stayed..

 

According to this, 100-210% of the drivers that work for starter companies, are replaced for whatever reason. Which of course is mathematically impossible

I agree with the rest of your post bar this statement - If 1000 drivers are at a company, and 100 stay for 5 years, but in that 5 years the other 900 are lasting 4 months and leaving, then 900 drivers times 3 times a year is 2700 drivers plus the 100 happy ones = 2800 employee numbers per year - or 280% turnover on a 1000 driver company.

A bit extreme on my figures here, I'd hate to see a company with a 280% turnover, but I can easily believe 100-150%.

I think the old "Figures can't lie, but liars can figure" might apply here.

 

Before we descend into thread hi jacking -

YES! I agree with you. A lower driver turnover rate does indicate a better company. Unfortunately I don't know of a resource that lists this figure for all companies. Sure would be helpful though.

The only figure I see reported is Truckload vs. LTL - currently 95% + VS. 13%.

You could take that last statement and make a really good career choice right out of the gate.

Good luck to you and your husband. (If the endless debates on here haven't driven you off!)

 

You might want to ask about the ratio of low-experience drivers to veteran drivers.

 

That is a matter of opinion....too many variables to be considered . Some folks think big money makes a perfect company , some folks think a fast , shiny truck with a big sleeper is the cats meow , some folks wanna be home alot , some just want to run certain areas....it's all relative to the individuals wants/needs. I worked for the same food service company ( GSF ) for over 3 decades. I retired in 2011 , when I retired I was running 3 days week , home every night , great health coverage and retirement vehicles , had 5 weeks of vacation , 3 personal holidays , 6 sick days , got paid trip pay + half trip + 8 hours for every Holiday worked...Off every Christmas , New Years Day..my pay was on average of 72 to 78k...IMHO that was a "perfect job" but other folks wouldn't want to unload between 1,000 and 1,500 hundred piece trucks 3 times a week even for all of those benefits...like I said perfect is up to the individual...my perfect may not be yours or anyone else.

 

Very true. On the average from reports in the orientation classes, half of the incoming orientation class is gone within two days without every hitting the training pad at my carrier. Background probems, lying about criminal and driving histories, medical problems, too good to jump through the necessary hoops to get into a seat, etc. A very high proportion of the remaining half washout before they get their CDLs. Orientation class size means very little... unless you get hooked up with an outfit that processes everyone through...

Again, very true. I'm not into schlepping freight... that's why we have lumpers.

 

And I guess the 90%+ failure/dropout rate is also a myth?

Starter companies would be thrilled with a 100% turn over rate.