According to David Heller, director of safety and policy for the Truckload Carriers Association, “there are as many as 200,000 job openings nationwide for long haul truckers. The U.S. Bureau of Labor Statistics also sees the demand for truckers increasing, from the 1.5 million drivers on the road now; it expects trucking to add 330,100 jobs by 2020 – an increase of 20% since 2010.”
That’s why more than ever, it is essential to have a driver hire plan in place. However, before you can implement a strategy regarding driving jobs, you must establish what your budget is.
Here are some key factors to consider when determining your driver hire budget.
Companies must audit internally and define what exactly driver turnover means in their organization. Who is responsible for monitoring, tracking, and reporting turnover on driving jobs? Companies must specify their goals for turnover and what their growth plans for their fleet are for the upcoming year. The recruiting department must hire enough drivers to meet the company’s growth plan in addition to enough drivers to keep up with their turnover.
How to figure your annual driver turnover
First, add the total number of drivers on the fleet on January 1 to the total number of drivers on the fleet on December 31. Divide that number by two, and you will have the annual turnover for the year. Second, take the total number of driver terminations for the year and divide it by the average number of drivers on the fleet for the year. Multiply that number by 100, and you will have the annual turnover for the year.
Companies must determine how many trucks are on their fleet and how many are available to assign to drivers. You should also account for any trucks that are out of service and what your growth or downsizing plans are for the year. This figure will tell you how many drivers your company must plan to hire in addition to replacing the turnover drivers.
Cost Per Hire
Look at your previous year’s driver hire efforts and determine how much you spent on recruiting drivers. Determine what costs were directly related to driving jobs and which expenses were charged to the recruiting department.
Include all costs involved in bringing on drivers such as; advertising, physicals, drug screens, MVRs and background checking, orientation expenses (travel, lodging, meals and materials) and any miscellaneous expenses directly related to the recruiting process (truck shows, promotional items, paperwork, office supplies, etc.)
For most companies, advertising will account for the most significant portion of their recruitment budget. To attract the best drivers, job seekers need to know who you are and how to reach you. Most importantly, they need to understand why your company is better to work for than your competitors.
To know how effective your recruitment advertising efforts are, it is imperative to track. Here are a few things you should monitor when analyzing your advertising source(s):
How many phone calls, emails, texts, etc. were received?
How many complete applications were obtained?
How many drivers arrived at orientation?
What was the actual number of drivers hired due to the advertising source?
Companies should track and monitor this weekly. The lower the advertising cost per hire, the more effective that source. Companies must also consider volume. An advertising source that has a low cost per hire but is only bringing in one or two drivers a month needs a second look to determine if you should spend more money on that source and if so, will it bring improved results.
Contact KJ Media online or call us at 800-620-9967 to discuss how we can eliminate your pain points.