How much does truck driver turnover cost?
Truck driver turnover has been around 100% per year for basically the last decade (other than during the recession). According to the ATA, it costs between $5,000 to $6,000 to replace a driver (see page three of this excellent article). If that driver only lasts a year (on average), then the turnover cost could be 10% or more of the driver’s wages!
Raising pay and improving benefits may be the obvious (and costly) ways to reduce turnover. An often overlooked solution is to employ only the drivers needed for core operations and to use outsourced driver staffing solutions for other needs. With CDL A truck drivers becoming very scarce resources, we need to make use of them as efficiently as possible. That means efficient routes, limiting empty back hauls and most of all, reducing idle time as much as possible. For example, if you need a driver three days a week, don’t hire a full-time driver who sits idle for the other two days! Driver staffing firms can better meet these varying demands than motor carriers since driver staffing firms can place drivers across carriers with complimentary needs. The driver shortage will ultimately improve the efficiency with which we deploy our valuable, skilled CDL A truck drivers.