While driver turnover is a rampant issue in our industry, many fleets are suffering from the hidden costs associated with replacing a driver. A recent study interviewing 15 fleets of varying carrier-type and sizes revealed that safety managers often underestimate the true costs of driver turnover. The study discovered that the cost of turnover could easily reach $20,729 per driver.
To start minimizing the effects of turnover, you need to understand the unforeseen costs you’re incurring outside of the standard training and onboarding costs.
Here are the eight annual cost categories resulting from turnover that you might not even know are hurting your fleet:
Bonuses — $94,163 ($0 – $712,500)
Sign-on bonuses and awards for safe driving are effective motivators for attracting and retaining talent. If your fleet refrains from offering these perks, you risk losing out on quality drivers. Over time, bonuses can take their toll on your fleet.
Testing and Screening — $194,430 ($0 – $536,000)
With high turnover, driver screens and drug/alcohol testing can quickly become costly for a fleet. While a single pre-employment drug test might not be pricey alone, constantly onboarding new drivers makes testing and screening a lot more costly than one might expect.
Orientation — $332,728 ($0 – $1,150,740)
Orientation programs increase the value of each new driver but can be costly as well. Besides the cost to attend orientation alone, your fleet also can pay heavily on transportation, lodging, teachers’ fees, and other education costs.
Advertising — $446,190 ($3,000 – $1,869,340)
Advertising includes any digital or print method to market a fleet to potential drivers. When looking at the cost of turnover, the costs associated with advertising and seeking talented drivers are often expensive and overlooked.
Training — $543,356 ($0 – $3,100,000)
Whether in-cab coaching, one-on-one meetings, online training, or in-classroom, training is an obvious cost that can rapidly grow with constant turnover.
Production Loss — $848,797 ($0 – $9,959,500)
High turnover also correlates with production loss while recruiting and training new drivers. New drivers are unfamiliar with their route and their inexperience often results in lost miles.
Staff Labor — $1,062,568 ($22,440 – $8,200,000)
Finding top-tier talent starts with recruitment, and fleets that acquire the best available drivers are investing in robust recruiting and driver relations departments. You also can’t forget about the extra administrative work and training a replacement driver needs.
Costs and Lost Profits of Idle Equipment — $3,017,535 ($70,980 – $18,109,797)
Without drivers to operate your trucks, your fleet is losing out on hauling freight for the time the vehicle is not operational. Lost profits from idle equipment is one of the most overlooked aspects of driver turnover when calculating a fleet’s true cost.
Addressing the Driver Turnover Issue
The above costs are all necessary and will vary from fleet to fleet, but the answer to achieving reductions is to start addressing driver turnover. Voluntary and involuntary turnover can be solved by focusing on a strong safety culture where everyone in the fleet is committed to accident prevention and making sure your drivers feel watched after, not over. Fleets today are achieving this by using driver management platforms, such as the Idelic Safety Suite. With the Safety Suite, safety teams are empowered to address at-risk drivers’ behavior and recognize the safest drivers for their dedication.
If you’re interested in learning how fleets are reducing driver turnover, preventing accidents, and lowering insurance, schedule a personalized demo of the Idelic Safety Suite today.
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