As the commercial transportation industry continues to face distinct driver shortages, fleet management has become more critical than ever. Indeed, fleet managers need to account for both seamless fleet operations and a limited workforce with high turnover rates. Fortunately, fleet management technology improves driver retention in multiple ways, as it continues to adapt to the industry’s needs. Read on to find out how.
Why driver retention is crucial
Initially, driver retention practices seek to address two distinct issues at once: the ongoing driver shortage and driver turnover. To better understand the roots of both and thus how fleet management technology can help, let us briefly explore each.
The driver shortage
The first major issue the industry faces is, in the simplest terms, driver shortage. Citing Chris Spear, President and CEO of the American Trucking Associations (ATA), Business Insider reports the following alarming findings:
- “The US has a shortage of around 80,000 truck drivers[;] a record high, and an increase of roughly 30% from before the pandemic.”
- “[I]f nothing is done to address the trucker shortage, the industry could be down by 160,000 drivers by 2030”, according to ATA.
- “This [driver shortage] has caused havoc in the US supply chain. Coupled with shipping problems and a surge in demand for goods, the lack of truck drivers is contributing to shortages, delays, and soaring prices.”
Business Insider continues to note that, coupled with COVID-19-related strains on trucker training and operations, “truckers are quitting their jobs in search of better wages, benefits, and working conditions.” These criteria, however, may present some actionable insights toward retaining drivers.
Driver turnover
The second major issue, in close alignment with the above, lies in driver turnover. Driver turnover rates have traditionally remained high in recent years, which ATA finds mostly unchanged. However, data does find a difference between smaller and larger truckload fleets, defining the latter as “fleets with more than $30 million in annual revenue”:
- “In [Q4], the turnover rate for [larger] truckload fleets […] was unchanged at a 92% annualized rate.”
- “[In contrast,] the churn rate for smaller truckload carriers dipped two percentage points to 72%.”
- “For the full year, the annualized turnover rate at large truckload carriers averaged 90%, down one point from 2019. The annual average rate at smaller truckload fleets was 69% in 2020, down from 72% in the previous year.”
Of course, driver turnover rates may signify a post-pandemic uptick, as ATA Chief Economist Bob Costello identified “a tightening of the driver market,” “a more robust freight market [and] an increase in carriers seeking drivers”. However, turnover rates do present a challenge for individual carriers that seek to retain talent, especially when faced with shortages.
The benefits of fleet management technology
With the above in mind, we may begin to explore how fleet management technology improves driver retention. For text economy, let us consolidate its benefits down to 2 that best serve this article’s context.
#1 Key Performance Indicator (KPI) tracking
First and foremost, such solutions serve to provide a clear overview of operations through fleet management KPI tracking. Vital KPIs they measure include:
- Driver performance; driving habits, route adherence, and more
- Diagnostics and maintenance; maintenance cost, frequency, and duration, inventory, and more
- Total Cost of Ownership (TCO); a vehicle’s overall cost, from initial acquisition and fuel costs to maintenance and taxes
Understandably, this depth of insights can offer invaluable assistance to fleet managers. In turn, operation optimizations they inform will inevitably benefit drives as well.
#2 Process automation and integrations
The second, definitional benefit comes with automation and integrations. As fleet management technology advances, its scope expands into integrations with other departments, such as marketing and sales. An excellent example of this comes with Customer Relationship Management (CRM) solutions, integrations with which offer to automate the processes fleet managers value with increasing efficiency. Such processes that directly relate to drivers include:
- Workflow improvements; driver vehicle inspections, fuel report submissions, delivery proof records, and more.
- Communication improvements; communication channel management, behavior insights, etc
- Driver documentation; maintenance and management of medical and other records, license renewal notifications, etc
How fleet management technology improves driver retention
Now, having already touched on some of the benefits of fleet management toward driver retention, let’s pinpoint exact practices. For the sake of text economy, let us consolidate them down to 3 categories.
#1 Promote driver safety
Perhaps the most obvious first benefit of comprehensive fleet management comes with driver safety. Here, consider that workplace safety remains a priority for truck drivers, so establishing a culture that prioritizes it should enhance retention rates.
As regards improving driver safety, fleet managers may consider both aspects of it:
- Driver behavior. First, driver behavior is crucial for their own safety. For instance, 2020 saw a worrying trend of reckless truck driver behavior, which manifested in a 40% increase in drug and alcohol violations. Identifying dangerous driver behaviors early will allow for timely interventions and coaching sessions.
- Timely vehicle maintenance. Simultaneously, engaging in proactive vehicle maintenance will immediately enhance on-the-road safety for drivers. Moreover, a close eye on vehicle diagnostics will allow for timely reactive maintenance, reassuring drivers that their safety remains a priority.
#2 Reward driver performance
On the subject of driver behavior, rewarding driver performance is the second way fleet management technology improves driver retention. Through consistent driver behavior monitoring, fleet managers may track such metrics as:
- Safe miles driven
- Engine idling times
- Route adherence
- Delivery timeliness
- Customer reviews
Of course, strict monetary rewards may not at all times be possible. Still, even plain recognition can incentivize drivers to continue to do their best, and assure them they are valued.
#3 Increase driver engagement
The third and final way fleet managers can seek to increase driver retention is simply by inciting more driver engagement. While exact ways to achieve this goal will vary across fleets and carriers, some common practices include:
- Recognizing excellence. As highlighted above, recognizing excellence directly affects driver engagement. As with all industries, an employee whose performance remains overlooked will very often seek more appreciative workplaces.
- Maintaining open communication channels. Similarly, as with all industries, communication is key toward ensuring employee satisfaction. Fleet managers may establish and maintain open communication channels, reassuring drivers that their feedback is being heard.
- Establishing productivity goals. Finally, clear productivity goals also serve to incentivize drivers to remain engaged and invested in their work. Especially in combination with performance recognition, this can offer immense benefits toward driver retention.
Here, of course, fleet management technology may not always directly enable such practices, but its insights will help inform them.
Conclusion
In summary, this is how fleet management technology improves driver retention; it helps promote driver safety, it enables better driver performance recognition, and it can inform practices that increase driver engagement.
Interested in state-of-the-art fleet management solutions that will help increase your driver retention? Contact us today, we’ll be happy to help!
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