Turnover rates in the trucking industry have declined as a result of the slowing economy, as drivers are holding on to their current jobs, hesitant to move from company to company. Regardless of the decline, turnover rates remain at a high103% in the first quarter of this year. In breaking down this number, if a company hired 100 employees in 2007, they would have had to replace all of those employees once, and three of them twice, in order to match this rate of turnover.
In his article, Driver Turnover Rates Decline, but Trucking Expects Reversal, Eric Miller writes, “’It is important to note that, while the driver market has eased over the last year (or more), this is only a temporary phenomenon,’ ATA Chief Economist Bob Costello wrote in the report. ‘In the longer-run, the driver shortage will be back with a vengeance, once freight volumes pick up, likely boosting turnover.’”
Both high turnover rates and driver shortages cause numerous problems in the trucking industry. High turnover rates require trucking companies to constantly hire and train new employees, decreasing the number of experienced truckers on the road. Driver shortages, on the other hand, push a trucking company to extend the number of hours a driver will be on the road in an effort to meet demand.
My thanks to Jackie Bretell who wrote this post.