Driver Retention Challenges in the North American Trucking Industry
The North American trucking sector has been grappling with a persistent issue regarding driver retention. Driver retention refers to the percentage of drivers who remain with a carrier compared to those who leave. The nature of long-haul, for-hire trucking leads to conditions where both employees and independent contractors find themselves away from home for days or even weeks. Factors such as transit delays (whether on the road or at customer locations) and health-related lifestyle issues, like sleep deprivation and poor diet choices, significantly contribute to both short-term and long-term turnover issues.
Turnover Trends Based on Tenure
Surveys conducted among participants of the TCA Profitability Program reveal that most turnover in the trucking industry is concentrated among drivers with a short tenure (less than 180 days since hiring), regardless of whether their departures are voluntary or involuntary. For carriers involved in these surveys, short-term turnover represented over 85% of the total annual turnover. This points to the notion that the primary reason for retention difficulties is the challenge drivers face while adjusting to their working conditions, particularly for long-haul drivers. Moreover, an increase in average haul length correlates with higher turnover rates.
Annualized Turnover Formula
((# of Drivers Departed) * 12) / ((Driver Count Beg. of Month + Driver Count End of Month) / 2)
Understanding the Turnover Rate
This formula helps interpret turnover data, suggesting what the turnover rate would look like if the current rate were maintained throughout the entire year.
Turnover Rates Over Quarters
Q3 2019: 97.50% | Q2 2019: 103.13% | Q1 2019: 105.31% | Q4 2018: 99.74%
1-249 Trucks: Q3 2019: 94.61% | Q2 2019: 109.75% | Q1 2019: 107.71% | Q4 2018: 98.77%
250+ Trucks: Q3 2019: 99.11% | Q2 2019: 103.59% | Q1 2019: 103.08% | Q4 2018: 98.45%
ATA Large Carrier: Q3 2019: 96% | Previous: Not Reported | Q1 2019: 83% | Q4 2018: 78%
ATA Small Carrier: Q3 2019: 73% | Previous: Not Reported | Q1 2019: 73% | Q4 2018: 77%
ATA LTL Carrier: Q3 2019: 9.00% | Previous: Not Reported | Q1 2019: 18% | Q4 2018: 10%
Contributors to Driver Turnover
Humans thrive on social connections, and jobs that limit interaction, such as long-haul trucking, face inherent retention challenges. Recently, for-hire carriers have sought to reduce average trip lengths to increase the amount of time drivers can spend at home. The reasoning is straightforward: more home time could lead to decreased voluntary turnover. The booming growth of regional distribution centers and e-commerce has also played a role in this change.
Economic Factors
Long-haul truck drivers are mainly compensated per mile, making their earnings highly variable. This inconsistency often presents budgeting difficulties, particularly for new drivers unfamiliar with such financial fluctuations. In recent years, some companies have introduced guaranteed pay or salary options to help address turnover related to income instability.
Health and Lifestyle Issues
Truck drivers face numerous unhealthy food choices on the road, leading to poor health outcomes like obesity and lifestyle-related diseases. Health issues have consistently been a significant factor in voluntary turnover among drivers.
Expectations vs. Reality
While trucking can provide above-average earnings compared to education requirements, the reality often does not align with expectations for many, especially newcomers. Although they have the opportunity to enjoy beautiful landscapes, they also contend with deteriorating road conditions and supply chain inefficiencies, which can impact their job satisfaction and retention.
