You might NOT be aware of this, especially if you are a commercial truck driver
so I thought I should tell you some important information about just how much you are
worth as a driver. According to research conducted by the Upper Great Plains
Transportation Institute at North Dakota State University, found that it costs
truckload carriers an average of $8,234 to replace a driver. The true costs to
replacing a driver need to be looked at by upper management closer to eliminate many
of the personality disputes that arise. Many carriers are creating positions to listen
to drivers and deal with their concerns. Some of the costs are:
Recruiting costs, including advertising, staff labor costs, testing, recruitment,
training and orientation fees, as well as referral and signing bonuses.
Profit lost due to idle equipment. Fixed asset costs of idle equipment.
Increased equipment maintenance as new drivers get used to a company's trucks.
Productivity loss as new drivers learn a carrier's delivery routes.
Customer loss because of unhappiness with driver attitude or lack of drivers to provide service.
A survey by Highway Bound magazine reported that:
truck drivers lose more than $100,000 in potential earnings over a 30 year career in
moving from carrier to carrier. One of the major problems in the industry is driver
recruitment and retention. The first due to company reputation while the other because
of policies and poor pay. Many companies are looking at 30% turnover annually. The
study also found an average driver earns 30.5 cents a mile when starting a new job,
while his pay increases to 33 cents a mile by three years. He will change jobs eight
times over that 30 years, unemployed four months because of job changes, be without
medical coverage 21 months, and 84 months on non-eligibility for 401K participation.
The bottom line is most drivers will stay with a carrier only as long as there is an
opportunity to make more income, while having to do the same amount of work or less.