Do you know your cost of turnover? When a driver leaves you and your trucks sit idle what is that costing you?
The supported number as provided from the TCA is $4,500 per driver. That varies depending on type of fleet, location, driver experience, and more. Below are some of the key factors
13 Factors that Affect your Cost of Turnover
- Who do you hire? Whether you are hiring new to the industry drivers, or more experienced drivers – this affects your costs.
- How many of your drivers worked with you before? Do you have an active, effective re-recruiting campaign? What is their cost and break even point?
- At any point in the year, do your trucks sit idle because you do not have enough drivers to fill the seats? What does this cost? Per day, per truck?
- At what point in your drivers tenure do you break-even on hiring them? 30 days? 60 days? 100 days? What percentage of your drivers are you able to keep past that point?
- How much do your recruiters cost.
- Do you advertise? And if so, how do you measure the effectiveness of your advertising.
- Do you use hiring bonuses or referral bonuses?
- How long do you train your new drivers? If you use experienced drivers to assist with training, are you factoring in their time?
- Are you operating at capacity.
- Do you factor the opportunity costs?
- What are the travel costs to orientation?
- What are the other costs of onboarding?
You may have additional costs to factor in. Knowing how much it costs you to replace drivers is key when approaching any type of retention strategy. If you could affect your turnover by 5%, how much would that add to the bottom line? 10%? In some cases the numbers are staggering.