driver turnover rate

fuzzeymateo · Feb 27, 2014

Emulsified said: ↑

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.
Click to expand...

This is an excellent post! A little long in the tooth but it is full of valuable information, thanks for posting it. I see almost everything you posted as fact. Now I will add a little bit of my opinion............If "freight companies" went back to being "freight companies" and not "training companies", wages would go up and safety would improve. What am I saying? The government needs to stop subsidizing these training companies. I saw it first hand when I worked at a CDL school and it's wrong. Like you said, my intentions were good (to train drivers safely) but the school had other intentions. All they cared about was that government grant they got for each student, bringing them in the door and pushing them out as fast as possible. That's why I only lasted 6 mos there. BTW, if it weren't for these training subsidies given to training companies there would be no CR England, Swift etc.. This is where their money is made, that and the fleece purchase. A day without CR England or Swifties on the road.......I can only imagine how much safer the roads would be.

Chickenfoot · Feb 27, 2014

Thanks for all the great information! I am the "Husband" Pinky is speaking of in the start of this thread. Can you believe I picked her for her looks and cooking gifts?! And I got a free career manager to boot!

I am an Army Vet and I promise I'll be doing a full mission analysis on this new career. In fact, I considered this about a year ago and decided against it because the first people I spoke to were CR E******. I smelled something rotten and ran away. I only came back when I noticed how many (small, local) companies were looking for CDL drivers in my local paper.

Oh... she's calling me to dinner... love that woman!

STexan · Feb 27, 2014

Emulsified said: ↑

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.
....
Click to expand...

That's almost funny but I'm not sure if you're being sarcastic.

AfterShock · Feb 27, 2014

Emulsified said: ↑

Now a primer on 'starter' companies. .......... (Big) snip ..........

.......... 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.
Click to expand...

Excellent post, Emulsified.
ThanX for saving me the time and energy of posting the same things you did, --- which, no doubt, would have consisted of far more words than you used.
I digress a lot. (chuckle)
It used to be said that the Big truck truckin' industry, "is what it is", but now-a-daze I'm thinkin' that it's more appropriate to say,
"it is what it has become".
It's generally accepted that the squeaking wheel gets the grease.
Not so in the Big truck truckin' industry.
In the Big truck truckin' industry, the squeakin' wheel
gets replaced.
Budda-Bing --- Budda-Bang.
Next in line, step right this way.................................................

If something doesn't seem to make any sense,
Follow the Money Trail.

As for potential flamers, I'm gettin' the impression that you've been exposed to heat a few times, --- fire tested if you will.
It appears to me that the heat you've incurred just made you stronger by increasing your temper,
and I'm not making reference to anger.
The word, "Resolve" come to mind.

ThanX again.

blairandgretchen said: ↑

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.
Click to expand...

PackRatTDI said: ↑

CR England's is the highest in the industry. ..wait my bad..I'm a little dyslexic and read that as overturn rate!
Click to expand...

We'll let it slide this time PackRat.
If/When any reference, by name, causes displeasure, simply re-name it to something more acceptable.
Of course, nothing else changes.
Smoke 'N Mirrors.

The Sons-0-Chester set their sights on a 225% turnover rate.
Them boys would starve with only 150%.
I wonder, does it seem strange that the bottom of the bottom feeder companies are related?
C.R. England, Knight, Swift, among others, --- all in the family. It all started when Maude Knight
got hitched to Chester England, many years ago.

Don't believe that?
Look it up yourself.

Chickenfoot said: ↑

Thanks for all the great information! I am the "Husband" Pinky is speaking of in the start of this thread. Can you believe I picked her for her looks and cooking gifts?! And I got a free career manager to boot!

I am an Army Vet and I promise I'll be doing a full mission analysis on this new career. In fact, I considered this about a year ago and decided against it because the first people I spoke to were CR E******. I smelled something rotten and ran away. I only came back when I noticed how many (small, local) companies were looking for CDL drivers in my local paper.

Oh... she's calling me to dinner... love that woman!
Click to expand...

A warm WELCOME to The Truckers' Report, Chickenfoot and "Wife". *wink*
Off hand, I'd say Pinky is a real keeper. Your combined participation posting in these forums is bound to be informative as well as educational.
I look forward to readin' your thoughts as you embark on this new adventure.
I'm thinkin' there will be many here who will benefit from what you come to learn, and share.
I wish both of you the best of success. :smt045

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