Welcome to the FTS Plus+ Blog: The Highway Wire

Thinking Outside the Box

Posted on 6/17/2016 by in Industry News

Driver attrition is at an all time high. Companies are trying everything from pay increases to redoubled hiring, but the number of drivers, or lack thereof, continues to increase. With companies facing turn over rates from 90% to 106% it begs the question ‘what can be done to increase retention and recruit new drivers’?

The shortage is currently estimated at between 35,000-50,000 drivers. As transportation costs rise, and the need for merchandise on store shelves increases, the problem will likely get worse before it gets better, creating a need for owners to think outside the box when it comes to driver retention and driver recruitment.

Recruiting can be costly and skyrockets expenses for carriers. According to Bill Cassidy, “if the cost of hiring a driver averages $5,000, a company with 200 drivers and a 100 percent turnover rate would spend $1 million a year just to keep capacity steady.”

High turnover causes operational inefficiency, and ultimately affects consumer satisfaction rates; not to mention when an individual is moving from company to company in search of something better, it affects their quality of life and that of their family.

While increases to driver pay and financial surges in marketing help to ‘band aid’ the turnover rates, there is an additional approach that has proven results when it comes to retention, and that’s offering medical benefits.

Offering benefits has a direct impact on a company’s appeal to drivers. Medical benefits are a consideration of many, especially those with families and small children. Supplemental benefits, such as accident and life insurance, set companies apart in a competitive market.

A driver will measure a company by its compensation and benefits package. Solid compensation packages attract quality talent— individuals who are career oriented. A generous benefits package communicates to the driver that the company cares about its employees and is stable enough to offer benefits.

While benefits sound great, traditionally they have been too expensive for small and mid sized trucking companies to offer. Premiums are higher than they’ve ever been and the cost associated with health plans continues to rise, but there is an association that is challenging traditional healthcare and changing the way benefits are provided for the trucking industry.

Independent Truckers Group (ITG) offers high quality, guaranteed issue benefits, at the lowest cost in the industry. Products such as the MEC Plan, cover wellness and preventive care starting at just $85 a month for an individual. The plan is ACA qualified, and can reduce or eliminate the Obamacare tax penalty.

ITG has been supporting fleets for 17 years and has a unique understanding of the challenges that owners continue to face in recruiting and retention. Their aim is to create an affordable solution to help companies retain their fleet, while providing drivers and their families quality benefits.

As the turnover rate continues to rise, healthcare and benefits are a critical asset to your fleet, making them an extremely influential factor in the recruitment and retention of top talent. So ask yourself this question, when you’re seeking new talent, what’s your competitive advantage over industry peers?

FTS Plus+ has partnered with ITG to help you offer your drivers quality benefits at affordable rates. To learn more, visit us at ftsplus.com/itgtrucking.

Don't forget there are many other great savings available for you to take advantage of! For a full list of savings and benefits, visit us at ftsplus.com/savings or give us a call at (800) 749-1724 Opt. 2 to talk with one of our dedicated savings consultants.