driver retention the nature of the problem factors contributing to the driver shortage potential...
TRANSCRIPT
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Driver Retention
The Nature of the ProblemFactors Contributing to the Driver ShortagePotential Solutions to the ProblemThe Driver Shortage/Turnover LiteraturePerspectives of Drivers and DispatchersFeedback Models
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Driver Retention
The Nature of the Problem
Turnover has Been Approximately 100% for the TL Segment of the Trucking Industry Since the Mid-1980s
Lost Freight Revenue from Vehicles Sitting Idle
The Cost of Driver Replacement is Estimate to be between $5,000 and $12,000 (Probably close to $10,000)
Cost to the Industry is in the Billions
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Driver Retention
Factors Contributing to the Driver Shortage
Changing demographics
Failure to recruit women and minorities
Inadequate pay and poor working conditions (long times away from home)
The Motor Vehicle Safety Act of 1986
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Driver RetentionPotential Solutions to the Problem
Actively recruiting Women, Blacks, and Hispanics.
Developing closer relations with high schools and vocational schools.
Creating internal career ladders for future drivers.
Placing more emphasis on scheduling techniques that permit drivers to return to their home towns as frequently as possible.
Placing more emphasis on keeping equipment in good condition since this has been found to be an important incentive to drivers.
Cooperative driver training programs that provide free training with commitments to drive for specified times after completion of training.
Developing proactive driver recruiting policies; i.e., on-going programs with active files on interested and qualified drivers.
Increasing Driver Pay
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Driver Retention
Pre-employment Screening
Applications
Interviews
Written Tests
Road Tests
Driving Record
Background Investigation
DOT Physical
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Driver Retention
Outside Services (i.e., DAC Services, Tulsa, OK)
Computerized Access to State MVR Databases 24 to 48 Hour Turnaround
Driver Work History
More than 2,500 Trucking Companies
Driving and Background Checks
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Driver Retention
Look for People Who See the Job as More than Just Driving Drivers Should Reflect the Image of the Firm Drivers are and Extension of the Sales Force
Don't Take Shortcuts to Hiring
Never Lower Your Expectations
Attempt to Hire People for Life
Verify the Information on the Application
Document Everything
Recommendations
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Driver Retention
Shortage and RecruitmentTarget Non-Traditional (LeMay and Taylor 1988)Recruiting Techniques (Southern Rakowski, and Godwin 1989)
(Dobie, Rakowski, and Southern, 1998)Driver Characteristics (Beilock and Capelle, 1990)
Retaining DriversIncentives for Performance (Taylor, 1991)Firm Attributes Leading to Retention (LeMay, Taylor, and Turner, 1994)
Driver Satisfaction (Richard, LeMay, Taylor, and Turner, 1994);
Attitudes Toward Management (Richard, LeMay, Taylor, 1995)
Focus on Dispatchers (Keller and Ozment, 1999)
The Turnover Literature
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Driver Retention
Results of Exit Interviews
Reasons Drivers LeavePoor PayToo Much Time Away from HomeOther (Approximately 35 %; 20 % related to Dispatcher)
Other Reasons Drivers Leave Dispatchers don’t answer messagesNo praise for doing a good jobLack of communicationDishonest dispatcherNo answer from dispatcher in two monthsDidn’t want to change dispatchersDissatisfied with performance review
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Driver Retention
Results of Exit Interviews(Continued)
Reasons Drivers Leave (besides pay & time away from home)
Wanted a transferPoor treatment by the companyUnfair operations policiesSettlement ProblemsTrouble with night dispatcherDispatcher incompetent decision makerUnhappy with dispatcherProblems with dispatcher switchboardUnhappy with changes in runsPoor treatment by customers
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Driver Retention
Results of Focus Groups: Perspectives of Drivers and Dispatchers
Group Question:
What are the Most Important Things that a Dispatcher Can Do to Help Retain Drivers?
Top Five Answers:
1. Routing Home2. Better Communication3. Positive and Personable Attitudes4. Provide Miles5. Maintain Trustworthiness
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Driver Retention
Results of Focus Groups: Perspectives of Drivers and Dispatchers
Other Issues
Drivers Report Little Interest in Using:1-(800) Hot LinesComment CardsSuggestion BoxesOpen Door Policies
Driver Preferences:Quick and Easy Feedback MethodsEasily Accessible Communication ToolsNo Required Writing
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Driver Retention
Research Question
How can a dispatcher increase the productivity of the drivers and keep them satisfied enough to remain with the company?
Why is one dispatcher better at this than another?
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Driver Retention
Exit, Voice and Loyalty(Hirshman, 1970)
“When organizations that are largely exit-sensitive encounter voice, it leads to little change in the output of the organization. Voice will either be ignored or institutionalized.”
(Matland, 1995)
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Driver Retention
Exit, Voice and Loyalty
Supports the Notion of Employees as Internal Customers
Characterizes Alternative Reactions to Dysfunctional Behaviors of Firms
Characterizes Alternative Responses of Firms
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Driver Retention
S-Voice
S-Exit
TurnoverResponsiveness
A Model of Dispatcher Sensitivity, Responsiveness, and Driver Turnover
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Driver Retention
Results
Voice is Institutionalized in Many (Most) Trucking Companies
Dispatchers Who are Sensitive to Voice and Who Respond to Voice have Significantly Higher Retention Rates than Other Dispatchers
Sensitivity to Exit Leads to Few Changes in the Firm
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Driver Retention
Feedback Models
CBF Models - Complaint-Based Feedback Models
PBF Models - Period-Based Feedback Models
Combined PBF and CBF Models (Periodic Feedback of Complaints)
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Driver Retention
CBF Models - Complaint-Based Feedback Models
Complaining Behavior
Immediate Problems
Poor Service
Hotels Restaurants
Police Departments, etc., etc.
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Driver Retention
PBF Models - Period-Based Feedback Models
Quarterly Job Reviews
Teacher Evaluations
Wal-Mart Shrinkage
ATCR – Air Travel Consumer Report
Holiday Inn
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Driver Retention
PBF Models - Period-Based Feedback Models
Quarterly Job Reviews
Teacher Evaluations
Wal-Mart Shrinkage
ATCR – Air Travel Consumer Report
Holiday Inn
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Driver Retention
U.S. Department of Transportation
Air Travel Consumer Report
A Product Of The
OFFICE OF AVIATION ENFORCEMENT AND PROCEEDINGS
Aviation Consumer Protection Division
1 Data collected by the Bureau of Transportation Statistics. Website: http://www.bts.gov/ 2 Data compiled by the Aviation Consumer Protection Division. Website: http://airconsumer.ost.dot.gov/ 3 Data provided by the Department of Homeland Security, Transportation Security Administration 4 Data collected by the Aviation Consumer Protection Division
Issued: October 2008
Flight Delays1 August 2008 12 Months Ending August 2008 Mishandled Baggage1 August 2008 Oversales1 2nd Quarter 2008 January-June 2008
Consumer Complaints2 August 2008 (Includes Disability and Discrimination Complaints) Customer Service Reports to the Dept. of Homeland Security3 August 2008 Airline Animal Incident Reports4 August 2008
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Driver Retention
Table 1: Overall Percentage of Reported Flight Operations Arriving On Time, by CarrierTable 1A: Overall Percentage of Reported Flight Operations Arriving On Time and Carrier
Rank, by Month, Quarter, and Data Base to DateTable 2: Number of Reported Flight Arrivals and Percentage Arriving On Time, by Carrier
and AirportTable 3: Percentage of All Carriers' Reported Flight Operations Arriving On Time, by
Airport and Time of DayTable 4: Percentage of All Carriers' Reported Flight Operations Departing On Time, by
Airport and Time of DayTable 5: List of Regularly Scheduled Flights Arriving Late 80% of the Time or More Table 6: Number and Percentage of Regularly Scheduled Flights Arriving Late 70% of the
Time or MoreTable 7: On-Time Arrival and Departure Percentage, by AirportTable 8: Overall Number and Percentage of Flight Cancellations, by CarrierTable 9: Flight Causation Data, By Airline and CategoryTable 10: Flight Causation Data, Graphic Representation
PBF Models - Period-Based Feedback Models
ATCR – Air Travel Consumer Report
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Driver Retention
Mishandled BaggageExplanationRanking—Month
OversalesExplanationRanking—2ndQtrRanking—January-June 2008
Consumer Complaints (Feedback to the public periodic)ExplanationComplaint Tables 1-5
Summary, Complaint Categories, U.S. Airlines, Incident Date, and Companies Other Than U.S. Airlines
Rankings, Table 6 (Month)Complaint Categories
PBF Models - Period-Based Feedback Models
ATCR – Air Travel Consumer Report
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Driver Retention
Quarterly Job Reviews
Teacher Evaluations
Wal-Mart Shrinkage
ATCR – Air Travel Consumer Report
Holiday Inn
PBF Models - Period-Based Feedback Models
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Driver Retention
ATCR – Air Travel Consumer Report
Holiday Inn
Drivers
Combining PBF and CBF Models
(Periodic Feedback of Complaints)
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Driver Retention
ATCR – Air Travel Consumer Report
Holiday Inn
Drivers
Combining PBF and CBF Models
(Periodic Feedback of Complaints)
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Driver Retention
Driver-Dispatcher Communication Model
Area Manager Fleet Manager 1Fleet Manager 2Fleet Manager 3Fleet Manager 4Fleet Manager 5Fleet Manager 6Fleet Manager 7Etc., Etc., Etc.
Driver 1Driver 2Driver 3Driver 4Driver 5Driver 6Driver 7Etc., Etc., Etc.
PBF/CBF Model
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Driver Retention
Area Manager
DriverFleet Manager
Computer
Driver-Dispatcher Communication Model
PBF/CBF Model
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Driver Retention
Complaint Area 1 Provides Miles Complaint Area 2 Gets Me Home OftenComplaint Area 3 Helpful with ProblemsComplaint Area 4 Respectful Complaint Area 5 Fair Complaint Area 6 Honest
Driver-Dispatcher Communication Model
PBF/CBF Model
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Driver Retention
Complaints Fleet Mgr 1 Mean
Provides Miles 6 8Gets Me Home Often 7 12Helpful with Problems 6 15Respectful 5 7Fair 11 15Honest 8 15
Driver-Dispatcher Communication Model
PBF/CBF Model
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Driver Retention
Complaints Fleet Mgr 2 Mean
Provides Miles 7 8Gets Me Home Often 9 12Helpful with Problems 18 15Respectful 4 5Fair 12 15Honest 10 15
Driver-Dispatcher Communication Model
PBF/CBF Model
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Driver Retention
Complaints Fleet Mgr 3 Mean
Provides Miles 10 8Gets Me Home Often 17 12Helpful with Problems 20 15Respectful 12 5Fair 21 15Honest 17 15
Driver-Dispatcher Communication Model
PBF/CBF Model