Opinion: Getting and Keeping the Right Employees

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By Mark Murfin Senior Vice President, Sales and Marketing Ruan Transportation Management Systems An American Trucking Associations study released in May confirmed the pinch that all of us in the logistics industry are feeling. The study’s authors predicted that the current driver shortage of 20,000 would increase to more than 110,000 in less than 10 years. All of this is to happen while the demand for freight hauling is forecast to exceed the supply of drivers to move the cargo. Drivers are exiting the field for a number of reasons: health, too much time away from family, less-competitive salaries and benefits, and odd schedules. What’s more, demographics will be against the industry for the next decade. The trucking and logistics industry traditionally has drawn on Caucasian men from 35 to 54 years of age, a population segment predicted to decline by 3 million between now and 2014. Demographic statistics also tell us that the growth of the labor force as a whole will slow by almost a full percent between now and 2012. Without the right people, we will fail. So, if we heed the previous statistics — and we need to do so quickly — we notice that we have to change the way we recruit and retain drivers. To that end, carriers should try to create an atmosphere for drivers — and, for that matter, all employees — conducive to retention. All employees want to be safe on the job. That means providing them with the tools and skills necessary to handle any situation that might arise. It also means a thorough hiring process including background checks that surpass industry standards for drivers. That way, employees and potential employees know they are safer because not only did they meet or exceed these standards, their fellow employees did, as well. Besides providing continual safety and security training to all employees, make sure that every person who comes in contact with a load has a role in its security. That is especially true for food and hazardous materials. Constantly communicate with drivers about potential hazards and conduct driver calls en route. Taking these steps demonstrates to drivers and their families that the company cares about their safety. When drivers have that confidence, they feel more positive about their employer, their line of work and themselves. It is no secret that health is a major issue among drivers. It is a challenge for drivers to eat right, get enough exercise and abstain from poor health habits such as tobacco use. Encourage healthy habits for your drivers and their families. My company, for example, has had for a decade a “wellness” reimbursement benefit for employees and families. Under that plan, we reimburse half the cost of smoking-cessation assistance, weight-loss programs and fitness-facility costs. Employees and families who take advantage of this benefit enjoy better quality of life and fewer health-care expenses, while the company benefits by reduced absenteeism and avoiding long-term health-care costs. This year, we introduced a consumer-driven health-care program designed to increase awareness of health-care costs and their effect on the entire organization. Different from a flexible spending account, the free program allows employees to save money on a tax-free basis and the funds do not lapse at the end of the year. The money never will be taxed as long as it is used for health-care expenses. The program includes a high-deductible health plan that meets the standards required to open a health savings account. This requires the employee to take responsibility for his or her own health, ultimately lowering costs. All of our medical plans provide preventive coverage including annual physicals, immunization and dietary consultations. We encourage our employees to be stewards of their health. However, the pure demographics of the trucking industry’s driver shortage are working against us and no amount of training, wellness education or communications can overcome it. Trucking must take a different recruiting approach. For example, the ATA forecast found that only 5% of drivers are women, only 11.7% are African American and Hispanics represent only 9.7%. We must recruit from within these underrepresented populations to help fill the void, beginning by exploring how to do so and to meet the needs of all of our employees. Drivers do not leave the trucking industry solely for financial reasons. They leave for a better quality of life — such as predictable schedules and quality family and personal time. By fulfilling those needs, you can have a high-quality work force dedicated to remaining part of the team. Ruan, of Des Moines, Iowa, is a privately held, full-service transportation management company with 2,800 drivers. This opinion piece appears in the Sept. 19 print edition of Transport Topics. Subscribe today.