Tag Archive for: Driver Turnover

55 Things We Learned from an Expert Insurance Underwriter

55 Things We Learned from an Expert Insurance Underwriter

Insurance premiums and renewal rates continue to be one of the biggest expenses incurred by trucking companies. Rates have increased exponentially in recent years due to accident frequency, truck driver shortage, and the ever-present threat of nuclear verdicts. But, we are here to help. We set out to learn about the underwriting process including:

  • – Assessing a Trucking Company
  • – Premium Increases
  • – Technology Factors
  • – COVID-19 Impact
  • – Safety Culture Influence

Download your free eBook from Infinit-I: Avoiding Nuclear Verdicts

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We interviewed Tony Hoff of Napa River Insurance about the underwriting process for trucking company insurance assessments. He gave the most interesting and data-packed presentation I have ever seen! I could barely keep up with all the notes.

Infinit-I Workforce Solutions presents: 

55 Things We Learned from an Expert Commercial Auto Insurance Underwriter.

Underwriting Process

  1. Fleet managers and front-line operations are the ones who must maintain the safety culture with the drivers. If they are not ‘singing the safety tune,’ no one is.
  2. Operations MUST believe in safety culture and live it every day. It is a continuation of the top-down culture that insurance underwriters take into consideration.
  3. Underwriters will not convince you that safety culture is important. You should already be living it.

“Safety is doing the right thing for a long time.” – Tony Hoff, Napa Valley Insurance

Industry-Wide Premium Increases

  1. 15-20% Increase in premiums across the industry without a horrendous loss. If you have incurred large losses, you can expect more.
  2. Underwriters consider 5 years of data history.
  3. Excess limits are more costly and difficult to fill. They are not priced to have a loss every single year.
  4. Results in commercial insurance carriers leaving the market because they can no longer afford to write commercial auto coverage.
  5. Capacity is on a steady decrease as insurance carriers leave the market. When you lose money from a loss standpoint, you don’t want to underwrite anymore.

COVID-19 Effects on Insurance

  1. In the beginning, COVID-19 slowed everything down in the commercial auto insurance market.
  2. Initial reduction in claims due to:
    • Less congestion on roads
    • Increased productivity
    • Fewer losses
    • Decreased accident frequency
  3. The trucking industry rebound has led to more claims due to the resurgence of traffic, congestion, and sudden backups.
  4. Speeding is OUT OF CONTROL!!! Unsafe Basic scores are rising across the board.
  5. “Accident rates are increasing at an unprecedented level. We need to slow these drivers down.”

Premium Increase Factors

  1. Everything is more expensive. (Claims frequency and amount, medical coverage, defense attorney fees.)
  2. Insurance companies are seeing losses where their vehicle never touched the insured truck but are still paying out.
  3. Plaintiffs are getting better at what they are doing. Ten years ago, they did not even know what a CSA score was. Not they could teach you about CSA.
  4. There is a lot of uncertainty in trying cases. Settling may be cheaper than going to court (fees/attorneys) even if you were clearly not liable.
  5. Loss development – the longer the claim is pending, the more it costs.

“A 300% increase in 6 years is dramatic. It is unsustainable. Something has to give. Who is it going to be?”

What You Can Control

  1. Know the process – know what steps of underwriting consist of.
  2. Underwriters who have time to thoroughly vet the submission feel more comfortable writing.
  3. Strongly suggest you shop early. Get ready at least 3 months before renewal. Have your documents ready.
  4. If you are going to shop with more than one broker/carrier, have a standard submission-ready.
  5. Know where you stand. Is my expectation to get a decrease? Or do I want to manage my increase?
  6. (Loss Ratio + Incurred Total Loss) / Your Premium. If you are over 65%, your insurance carrier is losing money.

Safety Culture

  1. Online continual training is key in proving your commitment to safety.
  2. Look at your drivers’ attitude. Do they accept responsibility? Are they willing to learn?
  3. It is absolutely crucial to have a remedial training program. Find drivers’ weaknesses and coach them.
  4. Insurers look at loss development, are you trending in the right direction. If you have a stellar loss history, a new loss may not significantly affect your premiums.
  5. Find the carrier that you enjoy doing business with and then figure out the pricing.
  6. Put some faith behind your trusted safety program. Invest in yourself.
  7. Let Underwriters know what makes you “Best in Class.”
  8. Be prepared for renewal, provide a packet with the following documents:
    • Financial documents and review
    • Loss History
    • Insurance History
    • Profile of Operations
    • CSA Roadside Results
    • Reportable Accidents not on Loss Run
    • Onsite Loss Control Survey

Be a Real Partner

  1. Solidify a business relationship with your Insurance Partner.
  2. You can get a quote from anywhere, be engaged.

Technology

  1. Track everything. You can’t know where you are trending unless you can track it:
  2. Turnover, Retention, Ops Performance, CSA Scores, Driver Safety Performance, Loss Trends, Accident Costs, Recordable Accident Rates, Total Accident Rates, Insurance Costs
  3. Benchmark yourself and maintain accountability.
  4. Find out what metrics are causing your losses and attack those.
  5. Use front end data to make back end decisions.

“Safety Professionals who make future decisions based on past results and analysis are the most effective. BE PROACTIVE.”

  1. “Every lawsuit involves being able to produce documents quickly. “Have you trained your drivers? Can you provide the documentation that you’ve trained your drivers?” Camera/online training combination can take a nuclear verdict and knock it out of the courtroom.” – Mark Rhea
  1. The greatest myth in trucking is that safety is too expensive. The advanced technologies that are now in place are a game changer in the industry. Technology is embraced by insurance companies because it gives us a claims “edge” that we otherwise would not have.
  1. Onboard cameras and collision mitigation are proven to influence courtroom decisions. BUT it only makes sense if you are willing to act on the data. You will need to have policies in place before you utilize these technologies.

Addition Tips from the Underwriter

  1. We will look at how many times you have switched insurance carriers in the past.
  2. If you have favorable loss history that extends beyond 5 years, and then have a bad year, it will come up at renewal. You need a relationship history with your insurer.
  3. Be 100% honest about what kind of carrier you are and what makes you the best.
  4. Bring to renewal: What do we do best? What do we need to do better?
  5. Have Best Practices in place, not the easy out. (PSP, Long-form physicals, etc.)
  6. Invest money in the onboarding process. Invest in your training.
  7. 10% of drivers cause 90% of your problems. Get them in and coach them before we lose them.
  8. Reporting the issue is huge! We track day loss happened vs. when it was reported to us.
  9. 3 things that will result in plaintiff verdict:
    • Leaving the scene of an accident.
    • Failure to report an accident.
    • Positive drug test after accident.

Insurance Take-Aways

  1. 2021 will continue to be a very challenging year from an insurance standpoint.
  2. Losses are up and so is speed. Slow your drivers down.
  3. We are living in different times and we need to adjust.
  4. What makes you an exceptional risk? Can we fix those areas that are not exceptional?

“Safety Culture = Commitment. If everyone in your organization stays committed, you WILL succeed.”

Get Your Insurance Questions Answered!

MCIEF Founder Tommy Ruke is Ready to Answer Your Most Pressing Insurance Questions. 
Learn Real Solutions to Your Insurance Problems. 

Infinit-I Workforce Solutions has partnered with the Motor Carrier Insurance Education Foundation (MCIEF.org) to help you get your insurance questions answered. Infinit-I and MCIEF have joined together to provide access to “Ask Tommy”.

This is a service provided to MCIEF members, but it is being opened up to Infinit-I visitors to give you the opportunity to ask your most pressing insurance questions. To submit your questions, click here.
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How Online Training Saves You Time, Money, and Resources

Save Time

The most precious commodity. Online training offers numerous ways to increase your efficiency; the most effective being through online orientation.

Traditional in-person orientation for a trucker is about 3 days on average. Every day that one of your drivers is sitting in a classroom and not on the road is potentially 500 miles per new hire. That’s money lost for your bottom line.

You might be thinking, “It’s not always about mileage, safety is a big part of orientation.”

Absolutely, we couldn’t agree more. Since the beginning of the Coronavirus pandemic, the entire business structure has shifted. Companies are now realizing the need for remote capabilities.

Our learning management system allows your new hires to start orientation as soon as the job offer is accepted. Instead of dozing off during orientation presentations, your drivers can

participate in online orientation from the comfort of their homes.

If you eliminate just 2 days of in-person orientation, you are looking at an additional 1,000 miles per new driver! Increased your efficiency, capacity, and revenue instantly.

Bonus: Since your drivers can work at their own pace while online, they get to spend more time with their family. This means, when your drivers do show up for their truck assignment, they aren’t worn out by several days of repetitive workshops or classes. They are fresh; ready to hit the road and make some money.

“Infinit-I is the pioneer and the leader for online truck driver training. For instance, we were able to cut our new driver orientation from two days into 2.5 hours with Infinit-I.”

-Bobur Hasan, HR and Recruiting

Save Money

The industry average cost of onboarding a new truck driver is around $10,000 each. How many new drivers do you take on each year? Most trucking companies have a turnover between 85-105%.

If you run a fleet of 100 drivers, your onboarding cost for one year could be up to $1 million dollars. That’s cost to hire, before rolling. How many miles would your new driver have to run before your company breaks even? And since the majority of turnover happens in the first 90 days of employment, how many of your drivers stay on that long?

Our safety program has proven to decrease our client turnover by up to 53%. That means is possible for Infinit-I Workforce Solutions to take you from 100% turnover to just 47%. A reduction in turnover like that would save you over half a million dollars per year in onboarding costs. Incredible!

Let’s say, however, that the Infinit-I Workforce Solutions platform reduces your turnover by a modest (very modest) 5%. Here is a simple formula to show your annual savings:

With a fleet of 100 trucks, a 5% reduction in turnover would save your company $50,000 annually.

 

Save Resources – Drivers, Equipment, Fuel

Our #1 goal is to support you in your effort to create safer drivers. Hopefully, you aren’t willing to put a price on a driver’s life. If our frequent and consistent safety training saves even one life, driver or civilian, our platform proves invaluable to your company.

We can, however, put a price on accidents. The average cost of an accidents/incidents in the trucking industry is around $5,000. Our learning management system has shown some clients up to an 18% reduction in accidents.

“The Infinit-I platform has streamlined our orientation process…resulting in lower CSA scores, reduced worker’s compensation claims, and decreased vehicle incidents and accidents.”

-Shepard Dunn, President & CEO

What could a just a 5% reduction in accidents return to your bottom line? If we figure one accident/incident per week for an entire year, your potential savings could be around $13,000 annually. Plug in your numbers below to figure how much your company could be saving.

Remote training can save you resources in so many other ways too. In-person training sessions, no matter how frequent, will always increase wear & tear on your equipment and unnecessary fuel consumption.

Not to mention the loss of revenue while your drivers are traveling to and from the terminal, not making money for your company. These are opportunity costs that aren’t typically considered when planning for safety training sessions.

And since social distancing is here to stay, in-person training presents even more challenges:

  • – What are your legal responsibilities to your employees?
  • – Can you accommodate a 6-foot distance between attendees?
  • – Will you require your drivers to wear masks?
  • – Will you provide masks?
  • – What types of masks are acceptable?

Too good to be true? Nope!

See for yourself with a complimentary, one-on-one, 30-minute demonstration with our experts. In just half an hour, you’ll experience the power of the Infinit-I Workforce Solutions platform.

Our learning management system will not only create safer drivers, but will save you time, money, and resources. We can prove it.

Click here to enhance your safety culture in just 30 minutes.

 

Want to know more…

More New Content Coming Soon! Check out these new additions to our library.

Out-perform, Out-shine, and Out-grow your Current Safety Culture

Why A Positive Dispatcher & Driver Relationship is Key

Why You Should Be Focused on Your Employee’s Cultural Relationships Now More Than Ever

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Why A Positive Dispatcher & Driver Relationship is Key

WHY A POSITIVE DISPATCHER & DRIVER RELATIONSHIP IS KEY

Dispatcher & Driver Relationship

Dispatching truck drivers is a challenging yet rewarding career path. The relationship between the two can be maintained in a healthy way through constant coaching and communication.

Dispatchers must be trained to manage any situation a driver might face over the road. They must be competent enough to walk the driver through sticky situations according to company policy. Not add to the stress of an already intense situation.

A dispatcher is the trucker’s first line of communication when encountering difficult situations. They are the first phone call when a trucker realizes their load might be late, or their trailer is overweight.

But these are minor inconveniences that happen daily, with relatively simple solutions. When a driver becomes injured, however, the dispatcher must be equipped to oversee the crisis.

Proactive vs. Reactive

In the simplest terms, being reactive means responding to situations that have already happened. Being proactive means having a plan in place before a situation occurs.

When a driver realizes their load might be late, there are certain stresses that exist when reporting to the dispatcher. They might be afraid they will get written up or lose their bonus.

While a written warning from a dispatcher is anxiety-inducing, it is nothing compared to the stress that can be caused by injury. Truck drivers are at high risk for some nasty injuries. From broken bones to lost limbs, even death, each is a potential risk of the job.

When a driver calls in to report an accident, the dispatcher must be trained to keep calm. They must also readily recall company policy in order to properly report the incident.

To achieve this, training should occur for dispatchers. Not only on the proper procedures, but also how to effectively communicate with a truck driver after a traumatic incident has occurred.

 

Driver Risks

Work-related injuries can happen anytime, anywhere. For truck drivers, the consequences of a work-related injury could be life or death.

As with any physically demanding job, truckers encounter many risks:

  • – Entering and Exiting the Tractor Trailer
  • – Slinging Chains or Tarps
  • – Loading and Unloading freight
  • – Adjusting Heavy Equipment (sliding tandems)
  • – Back Injury from Extended Driving
  • – Heat-Related Injuries
  • – Hazardous Material Exposure
  • – Accidents and Incidents

Each of these poses a threat to the driver’s health, up to serious injury or death. They could also be put on medical hold if deemed not qualified to operate a commercial vehicle, which can lead to financial struggles for the company and/or the driver.

In addition to truck driver training, dispatchers should be trained on the proper procedures before an event occurs. Knowledge that is frequently and consistently trained will be readily available during a time of crisis.

The Dispatcher & Driver Relationship Program

A healthy relationship is a fundamental motivator for hard work.

Encouraging a positive company culture is essential to achieving top performance. Your dispatchers and drivers are the heart and soul of your company. The health of their relationship is a key indicator of employee morale. A healthy relationship is a fundamental motivator for hard work.

The Dan Baker Cultural Relationship Program offered by Infinit-I Workforce Solutions teaches dispatchers the importance of communication and cooperation with their drivers.

In addition to Dispatcher Driver Relationship training, The Dan Baker Cultural Relationship Program focuses on:

  • – Employee Development
  • – Improve Communications
  • – Encourage Cooperation
  • – Foster Professionalism

The entire Dan Baker Cultural Relationship Program is available on the Infinit-I Workforce Solutions platform.

 

 

Additional Resources:

5 Intangible Must-Haves that Truckers Crave in the Job Market

Why You Should Be Focused on Your Employee’s Cultural Relationships Now More Than Ever

Why your Safety Culture will Die without Buy-In. And how to get it.

 

 

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5 Intangible Must Haves that Truckers Crave in the Job Market

5 Intangible Must Haves that Truckers Crave in the Job Market

Wow! Dan Baker, what an insightful thinker!

We can’t stop talking about the inspiring webinar this week featuring Dan Baker, so we decided to blog about it.

His wisdom and knowledge and overall-attitude about truck drivers are downright infectious! (Bad choice of words during a pandemic?)

The trucking industry moves fast. If you’ve never seen the inside of an operations department, you may not realize the stress and anxiety that exists. One might compare the energy level to the trading floor of the stock exchange, or the stress of air traffic control.

All of this with a solitary purpose, deliver consumer goods on time.

What is a Cultural Relationship?

Research states that employee satisfaction is one of the most important factors in retention. One employee’s attitude can change the feeling of an entire workspace, either positively or negatively.

Bright HR introduces the concept of a psychological contract between employers and employees. The idea states that employers have an obligation to recognize the mental state of their employees and identify potential issues that may arise.

A company’s culture has become a prevalent topic in the working world. Leadership is focused on creating solid cultural relationships between employees.

Employee dissatisfaction leads to a higher turnover. High turnover leads to lower profitability.

The cost of replacing an employee can be thousands of dollars, depending on their position. Creating a workspace where employees feel respected and valued can support one of the best cost-cutting tools; retention.

Why is it important?

Turnover is an ever-present pain point, especially in the trucking industry where average driver turnover hovers north of 90%. The current driver shortage means there are many options for most drivers to easily find another trucking job.

Most of the time, it’s not about the equipment. Or the sign-on bonus. Or the size of the fleet.  While those are factors in the decision-making process, there are other, non-tangible perks that truck drivers are looking for.

With that in mind, employers are focusing on how to make their company the place drivers want to be.

5 Intangibles Truck Drivers Crave

Honesty

From day one, truck drivers just want to hear the truth. Recruiting, especially in transportation, has become a sales position.

Recruiters are trained in sales tactics. They are instructed to ask open-ended questions to identify value points. Then use those value points to entice the drivers. Sometimes, this can feel like a sales pitch to the driver instead of the beginning of a working relationship.

From the moment a driver posts a resume on a job board, their phone starts ringing nonstop. It is easy to get overwhelmed with all the interviews, emails, and screening they have to participate in.

Remove the vail of the sales pitch. Be honest. If you value that driver, tell them.

Communication

After they are employed, you must be able to carry that through to the operations side. One of the most frustrating things for an employee is lack of communication.

Imagine what it’s like to be sitting in a tractor-trailer, waiting for an assignment. Being told, “I’m working on something for you.” Only to wait hours and hours to be dispatched with absolutely no idea when they might get to start rolling.

That driver, or any employee for that matter, would much rather hear, “I won’t have an assignment for you for another 3 hours.”

They may not be happy about the situation, but setting the expectation is always better than leaving your driver hanging.

Respect

Truck drivers are the ultimate boots on the ground, front-line, in-the-know resources of the industry. And they deserve to be treated as such.

Even though they are not sitting in a cubicle at the terminal every day, they are still just as much a part of the workforce. Dispatchers, safety officers, managers, executives, truck drivers, and everyone in between should see themselves as coworkers.

This is where your company culture determines your employees’ cultural relationship. Do they see themselves as a team with a common goal? Or is it every man for himself?

To create a positive experience for everyone involved, focus on enhancing that relationship. Explore training options to encourage a workforce that shows respect to each other.

Fast Orientation

Since turnover is so high in the trucking industry, drivers can move companies often. They have been involved in every type of orientation available. And most of the time, they flat out don’t want to be there.

They’ve heard the presentations, they’ve filled out the paperwork, they’ve taken tests repeatedly.

With the latest technological advances, the practice of in-person orientation has become all but obsolete. Infinit-I Workforce Solutions allows trucking companies to virtually conduct online orientation from the comfort of their own home.

Orientation begins immediately after a job offer is made. The short, Netflix style videos or new hire paperwork get sent directly to your new driver’s computer, tablet, or smartphone. They can participate in all your regular “class-room style” orientation activities before they even arrive at the terminal.

Truck drivers just want to get on the road. For some, sitting through 3+ days of repetitive orientation is an eternity. We can change that.

To drive

Enough said.

Empty asphalt road in summer.

As previously mentioned, Dan Baker is an expert at creating positive and encouraging cultural relationships, specifically in the trucking industry. His Cultural Relationship Program was born of a need for connection and change.

One thing has become palpably apparent during the national emergencies recently: truck drivers are essential. And they should be treated that way. A strong cultural relationship is mutually beneficial for everyone from the front lines all the way up the ladder.

The Dan Baker Cultural Relationship Program will help you evaluate your business structure and allow you to eliminate weak points and solidify your strengths.

Click here for more information.

Additional Resources:

Why You Should Be Focused on Your Employee’s Cultural Relationships Now More Than Ever

Why your Safety Culture will Die without Buy-In. And how to get it.

HOT HOT HOT! Sunshine Threatens Truckers. Here’s What Your Fleet Needs to Know

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Why You Should Be Focused on Your Employee’s Cultural Relationships Now More Than Ever

Truck drivers are in high demand, and they know it. Because of the driver shortage, truck drivers expect more from their employers than ever before.

You must become the kind of company a driver wants to work for.

Truckers move fast.  Formalities disappear when communication is hurried.  In the rush, sometimes we forget to see each other as people.

As someone’s mom or dad.  As someone’s son or daughter; grandma or grandpa. Sometimes we forget about each other’s lives lived outside the walls of the company.

The Cultural Relationship

Retention is one of the key factors in the profitability of a trucking company. And to achieve long-term retention of your drivers, they must value your company and want to be there.

Establishing a cultural relationship focuses on enhancing the employee experience. Building positive working relationships between employees improves employee retention and satisfaction.

From Drivers, Operations, Shopworkers, Recruiting, and everyone in between. Add enterprise-wide value with these takeaways:

  • Employee Development
  • Improve Communications
  • Encourage Cooperation
  • Foster Professionalism
  • Reinforce Company Culture

Drivers and Everyone else

A driver’s relationship with your company is formed by every single interaction, from day one. Think about your recruiters, your dispatchers, your mechanics; their job performance of determines the driver’s perception of your company.

An adequately trained and competent workforce leads to greater driver satisfaction. Which, in turn, reduces your turnover and saves you money.

Every employee is responsible for your company culture, a critical factor in retention. Every single employee is a key piece in making your company the place drivers want to stay.

Think about your drivers’ typical day, whether at the terminal or on the road. Every point of contact they meet is potentially a pivotal interaction.

Each of those points of contact determines the driver’s perception of the company. Each interaction is an opportunity to create value for the driver.

At any moment, your driver could experience an unfulfilling encounter with another employee. If that driver decides to leave your company, the cost of a new hire replacement is tremendous.

Your winning team depends on motivation, encouragement, and employee morale. Discover the secret to all three with The Cultural Relationship Program: The People Side of Trucking with Dan Baker.

The Dan Baker Cultural Relationship Program

The son of a trucker, Dan Baker utilizes his 40+ years in the industry to improve trucking operations. His consultation builds relationships between employees that bridge generational gaps.

Dan has developed the Dan Baker Cultural Relationship Program, designed for all employees. From the administration to the shop, from the CEO to the custodial staff, this program will improve their communication skills.

The Dan Baker Cultural Relationship Program is available now on the Infinit-I Workforce Solutions platform. It is presented in three sections:

Employee Development (71 videos)

  • Company Culture, Parts 1 & 2
  • Conflict Resolution, Parts 1 & 2
  • The Most Important Part of the Process is You
  • Our Five Basic Needs
  • Perception
  • How We Perceive Ourselves
  • What Makes People Tick?
  • Comfortable With Yourself

Dispatcher Development/Communication Training (64 videos)

  • Dispatcher Foundations
  • Perception
  • Trust and Respect
  • The Generational Challenge
  • The Functions of a Dispatcher, Parts 1&2
  • Successful Communication
  • The Dispatcher/Driver Relationship
  • Managing Your Own Thinking, Parts 1 & 2

Recruiting Insights (18 videos)

  • Generational Turnover Parts 1 & 2

Poems & Stories (2 videos)

Other Interesting Articles:

Why your Safety Culture will Die without Buy-In. And how to get it.

HOT HOT HOT! Sunshine Threatens Truckers. Here’s What Your Fleet Needs to Know

28 Things Every Employer Should Do While Employees Are Heading Back To Work

Truck Drivers Challenged by Demonstrations All Over the Country

Minimize Mistakes to Maximize your Most Valuable Resource – Your Drivers

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Minimize Mistakes to Maximize your Most Valuable Resource – Your Drivers

Client Success Team

One of the biggest expenses a trucking company experiences is onboarding new drivers. Studies show that each new driver costs approximately $10,000 to recruit, onboard, and train. Retention becomes a huge factor in cutting costs.

Dan Baker’s Cultural Relationship Program teaches that improving the relationship between management, operations, and drivers creates a positive company culture that is the key to success.

A foolproof way to create a more loyal fleet is to encourage the cultural relationship between dispatchers and truck drivers. Both should understand how the other operates and be able to maintain open communication.

Money-making truck drivers love being dispatched on those loads that require you to travel 2,000 miles in 4 days. Loads with more miles ensure more money for the truck driver and their employer.

That is not always the case, however. Sometimes, there are no good loads to dispatch.

In the case of bad freight, look for other ways to improve efficiency. Use these tips from logistics leadership to maximize your most valuable resource, your drivers.

Average Trucker Pay

In 2019, the average pay for truck drivers was roughly $58,000, up from $52,000 in 2017. Truck drivers make about $10,000 more than the average earner. But everyone likes to earn extra money, right?

Creating an environment where your drivers will not only be successful, but will also thrive, will encourage loyalty and long-term retention. Infinit-I Workforce Solutions offers numerous training courses that will allow continual education of any size fleet.

Encourage Drivers Maximize Hours

Some truck drivers fully enjoy the rush of running the highways, maxing out their hours every day. Those drivers typically make the most money.

Some drivers prefer to take extended breaks, mosey around truck stops, sleep late, etc. All the time they spend idle is money lost for that driver and your company.

Make sure they understand the basics concepts of hours of service and set the expectation with this training course:

Infinit-I Workforce Solutions Training Catalog – Page 21 – CSA Hours of Service Basics

Interpreting the BOL

One of the worst things a trucking company can experience is OS&D. Overage, Shortage, & Damaged – This occurs when the freight amount is incorrect or damaged and the receiver will not accept the shipment.

While your company probably has insurance to protect you from losses, these claims take time. An OS&D incident can stop a truck for several days while a claim is being sorted. When you make money per loaded mile, an idle truck can cost your company a lot of money.

Make sure your drivers know how to read a BOL for every type of load they haul. As soon as they are loaded, they should have a thorough understanding of the shippers/receiver’s expectations and condition the load should arrive in.

This type of proactive training can save money and prevent loss of miles and revenue.

Trip Planning

Most truck drivers know the importance of trip planning, but some may not be able to execute a trip plan properly. Sharing these tips with your drivers will start a conversation about improvement.

  • Get to the destination city as quickly and safely as possible. It is always a good idea for a driver to put more miles on the front end of a trip. It is better for a truck driver to knock out 90% of the trip on pickup day than have too many miles left on delivery day.
  • If your receiver doesn’t penalize you for early loads, encourage drivers to check in early. Chances are, they will take your freight before the actual appointment, allowing your driver to move on to another load.
  • Avoid dispatching loads with too much time on them. It is always better to have a driver rolling than getting paid for sitting still.
  • You drivers should always check the entire route for big cities, business loops, high traffic areas, construction, and weather as soon as they are dispatched. They must be able to identify areas that may require a reroute. Encourage them to communicate those concerns with operations.
  • Eventually, the FMCSA’s HOS changes will allow drivers to take their 30-minute break while on duty. When in effect, drivers will be able to take their 30-minute break while fueling or being loaded/unloaded. Emphasis the importance of restful breaks, however. This is a tool to help drivers utilize their time more efficiently, not drive fatigued.

On-Time Delivery

Some truck drivers don’t understand the consequences of late delivery until its too late. Most receivers will consider late drivers a ‘work-in.’

Depending on their volume, that driver could be sitting for hours or even days waiting on an opening. This not only creates a loss of miles for the driver but also constitutes a loss in revenue for your company and compromises your reputation with that shipper and receiver.

Avoid Obstacles

Booking loads with unpaid deadhead can cost your company thousands of dollars of it happens too often. You should always negotiate empty miles with your customer. If not, look for backhaul loads. You may even reach out to brokerages to make up for the loss of revenue.

When booking loads, always check to confirm your driver will have enough time to deliver on time. Be aware of the distance of the trip, the route conditions, and the number of hours available to avoid a repower. Sending another driver to relay a load will only cost every person involved time and money.

Most importantly, encourage their safety. Drivers should be made aware that they don’t have to drive excessive speeds to make more money. The best way to improve your fleet’s performance is communication and continuing education.

Contact Infinit-I Workforce Solutions to find out how we can enhance your safety culture, improve your drivers’ behaviors, and save you money. Ask about your Complimentary 30-Day Trial!

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Logistics Layoffs; How the Industry is Shifting

Logistics Layoffs; How the Industry is Shifting

The Coronavirus pandemic has had a larger impact economically than medically in the United States so far. Since December of 2019, nearly 1.4 Million additional workers have filed for unemployment. The total number of unemployment claims rose to 7.1 million as of the close of March 2020.

Comparatively, as of late April 2020, there have been 820,000 confirmed cases of Coronavirus in the United States. This means that 60% more people have been laid off than have tested positive for the virus.

Why is this happening?

While social distancing has been successful in slowing the spread of Coronavirus, the country’s economic growth has also drastically slowed. U.S. citizens have been encouraged, and sometimes mandated, to stay in their homes and away from others. The necessary steps we have taken to contain the virus have had a severe impact that would have been difficult to predict.

To maintain balance, the response has been cutting expenses. Layoffs and furloughs work by the same principles of supply and demand. While management typically does not look forward to reducing its headcount, it is sometimes the only option to maintain the health of the business in the future.

Why does a company lay off employees?

Restaurants, retail stores, entertainment arenas, and more have been ordered to reduce operations or close completely. These companies work diligently to maintain a balance between their number of customers versus the number of employees.

The companies who perfect this practice gain a competitive advantage because they are properly servicing their customers with an efficient number of workers. Without customers, these businesses cannot afford to keep their employees on the payroll.

Due to the pandemic, customers are forced to stay home, and little revenue is coming into the companies. It is not essential to retain the current number of employees. To focus on long term goals, companies have had no choice but to make serious adjustments to their current procedures. A major way to reduce operating costs is to layoff, furlough, or terminate current employees.

Layoff vs. furlough

Reducing headcount is the short-term solution to a long-term plan for the business. It allows the company to prepare for recovery instead of upsetting the balance between customers and employees.

·        Layoff – a discharge of a worker or workers. 

Layoffs are sometimes necessary to preserve future performance. If you have been laid off recently, it does not necessarily mean you were bad at your job.

Companies resort to layoffs to permanently reduce their workforce. The frequency of layoffs increases when operating costs get too high, during economic recessions or, in this case, national emergencies.

 

·        Furlough – a layoff, especially a temporary one, from a place of employment

If you have been furloughed, it usually means you are temporarily off work until your company starts to bounce back. Furloughs are a short-term solution for the company so they can recover from losses. It works by eliminating payroll costs but keeping the employee “on the books.” Furloughed employees are usually asked to come back to work as soon as the balance is restored.

 

Professional Driver Job Market

Auto-haulers have seen a massive decline in available jobs because the balance has been upset. Most car manufacturers have reduced their headcount and consumers are not buying cards during the pandemic.

Self-isolation has caused several commuter drivers to drastically reduce the amount of road time they experience each week. Since thousands of people are working from home or have been laid off, the demand for diesel fuel and gasoline has drastically faltered.

Oilfield services are experiencing historically low oil prices, resulting in surplus inventories and decreased production. Thousands of people have been left without work. Many of these workers and contractors have CDLs and are looking to transition into other sectors.

Reduced fuel consumption makes fewer jobs available since there is a decreased need. This also drives the price lower. Gas haulers are taking a hard hit for the time being. As the economy normalizes, however, the need for fuel should return to normal.

A decreased number of commuters combined with social distancing regulations has forced many truck stops to lay off their employees. Truck drivers are feeling the brunt of this as well. They are no longer able to eat at the dine-in restaurants or use the driver’s lounge at truck stops. The effect is far more widespread than could have been predicted.

What now?

Trucking is its own beast. Once you are in it, you are in it for life. Whether you’re a professional driver, dispatcher, planner, etc. you will most likely stay within the industry. But that doesn’t mean there are no options after you’re laid off.

The success of a trucking company is very much dependent on their capacity and the amount of freight available to move. Certain sectors, such as food and pharmaceuticals, have seen success throughout the pandemic because the demand has increased.  Freight activity and rates are quickly dropping in all sectors.

But there is hope. The internet holds unlimited amounts of information about different sectors of the trucking industry. An auto-hauler may be out of work now but could research the basics of running reefer. If your mileage has been limited due to the pandemic, use this time to try out another specialty that is booming.

The future of trucking

DMVs have shut down, new CDL holders have not been able to enter the market. When the economy returns to normal, we will see a higher demand for truck drivers. However, after several months without issuing new licenses, it will be the responsibility of current CDL holders to take on the extra work.

Current CDL holders are not able to renew expired licenses. The emergency waiver issued by the FMCSA allows those with expired licenses some relief until the end of the declaration.

Trucking companies rely on technology to make their operations as efficient as possible. You will begin seeing more companies offering remote online orientation because it greatly increases the efficiency of traditional orientation.

And truck drivers love it! New recruits will no longer have to attend a 3-day, in-class orientation before being assigned a truck. They watch presentations, safety videos, and test out from the comfort of their own home.

This convenience allows drivers to spend more time with their families while completing orientation assignments on their smartphone or computer.

Look Forward to Recovery

The economic impact of the Coronavirus has been widespread to an extent no one predicted. Eventually we will start to recover, but the trucking industry will forever be changed. To begin the path to recovery, today’s industry leaders are preparing by:

  • – Streamlining communication
  • – Harnessing technology to provide training
  • – Preparing for all potential challenges
  • – Documenting everything

Companies and drivers that can adapt and overcome to the new way of business will achieve success, just as they have before.

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Want to lower driver turnover? How a good training program impacts driver retention

A driver stands in the sun beside his truck cab | Lower driver turnover

Truck driver turnover hovers around 90% on a good day. This costs trucking businesses a small fortune, from onboarding to maintaining safety standards, to delays that a short staff will inevitably cause. With such a high demand for talent, keeping your drivers means keeping your business on the road without interruptions. The question all trucking companies are asking is, “how can I lower truck-driver turnover?”

Why is driver turnover so high?

According to our data, most driver turnover happens within the first 180 days of employment, showing that newer drivers have a hard time acclimating to the lifestyle. Secondly, long-haul routes see higher turnover. The longer the route, the shorter the tenure.

The High Cost of High Turnover

The average cost to replace a truck driver is $8,200, and the average tenure with one employer is one year. On top of that, the cost of replacing a driver is roughly three times the average cost of turnover in the U.S. 

Replacing your entire workforce every year adds up, and with profit margins already slim, trucking companies can’t afford to pay for that revolving door year after year and stay in business. 

How do you lower driver turnover? Well, first, we need to address the solvable root causes.

Addressing the Causes of High Turnover

Being on the road is hard; we all know that. Many newer drivers don’t fully grasp the impact of life on the road until they are in the thick of it. Long hours alone and separation from loved ones can be difficult to deal with if a driver is unprepared. And many drivers struggle to engage with their coworkers and peers because of distance. Add to that the level of responsibility and constant situational awareness that a driver needs to have top of mind at all times.

A truck driver is responsible for not only a 1,000-pound vehicle but tens of thousands of dollars of cargo. Add to that the responsibility for maintenance and safety. A truck driver must always be up to date on safety training and always cognizant of other drivers on the road. 

This level of responsibility, coupled with limited human engagement, is taxing on an individual, and many give up.

Solving for Human Connection, Engagement, and Responsibility

Trucking companies mostly understand the need for driver training and engagement. The rules and regulations of the road are many, and truckers are held accountable for every misstep and even every perceived misstep. Not only does this reflect on the driver’s record, impacting their ability to work and make a decent salary, but it also reflects on the trucking company. If a driver gets a negative CSA score because of maintenance or other issues, so does the company. 

The pressure is high on both drivers and companies, and many trucking companies have renewed interest in safety training programs. An investment in safety training is an investment in the company. And it could also help lower driver turnover.

“You are not in the trucking business. You are in the people business.”

Noted industry icon, Dan Baker, is famous for this line. No matter the age or generation of a truck driver, one thing always stays the same: people need to feel like they belong. This is why the trucking business must be about people first. 

Drivers stay with a trucking company, not because of pay or benefits, but because they feel like they belong and that they are appreciated. Many drivers feel like they are a business’ lowest priority because they are on the road, and it’s important to go the extra mile to prove that they matter to you. To learn how to build a great culture of belonging, check out our webinar.

But how do you solve the lack of human connection when drivers are on the road? And how can this lower driver turnover?

Appreciated employees are retained employees. You need a training program that recognizes drivers for their good work, not just their CSA scores. It also helps to give drivers morale-boosting experiences, like wishing them a happy birthday or happy service anniversary. 

When a new driver starts with your company, roll out the red carpet. Make a big deal about them and go out of your way to show them that you’re happy they’ve joined the company.  A little bit of recognition can go a long way in increasing morale and lowering driver turnover.

A Win-Win Solution 

The best way to reduce driver turnover is to keep the drivers you already have by creating a company culture that inspires drivers. Infinit-I Workforce Solutions has a cultural relations training program to help you build company-wide relationships that help all employees understand their role in company culture. To learn more about building that culture, click here.

Training and Engagement to Reduce Driver Turnover

Infinit-I Workforce Solutions has a customizable, mobile training tool that solves all the root causes of driver turnover, helping you retain your workforce and keep your business rolling.

With brief, easily-digestible training modules, drivers can complete training without eating into drive-time or off-time. In fact, most of our drivers complete their training during load times! Brief quizzes at the end of each module automatically store results, ensuring your company stays up to date with mandatory safety training requirements.

Best of all, the tool has a built-in employee appreciation function. Even while your drivers are on the road, they will know that you value them not only as drivers but as human beings. That will go a long way to lower your driver turnover. Because when the competition for talent is fierce, differentiating your company even in small ways can make a big difference.

Infinit-I Workforce Solutions takes care of all of the administration for you. We know that even if your intentions for employee recognition are great, the administration of a recognition program for tens of thousands of drivers is beyond your capacity. That’s why we built it in. 

5 Things to Remember About Lowering Driver Turnover:

  • • Life on the road is hard, and a little appreciation can go a long way.
  • • Training is necessary but needs to be retained for it to be effective.
  • • Brief training modules with videos work well when time is of the essence.
  • • An appreciated employee is a retained employee.
  • • A training program that combines state-of-the-art training with employee appreciation will lower your driver turnover.

Reduce Truck Driver Turnover

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Implementing Driver Engagement Programs That Work

driver engagement programs

At the end of the day, a driver working is mainly about a good job and a paycheck. But what does a “good job” mean? The answer might surprise you. In this gig-economy, good relationships, and meaningful engagement at work are more of a premium than ever, especially if you want to attract younger drivers who are looking for a fulfilling experience on the job, as well as good pay. Find out how driver engagement programs can help your company stand out from the crowd.

What is an “engaged” driver?

An engaged driver wants to make the relationship work. Why? Because an engaged driver believes they have a part to play in your company. They don’t feel like a disposable spare part that can be easily ignored and replaced but like a team player.

An engaged driver knows:

  • • They have your ear when they need it
  • • You respect them in word and deed
  • • You acknowledge that they have a life outside of work
  • • You’re honest and fair about policy enforcement
  • • If they complain, something gets done

An engaged driver engages by:

  • • Listening/complying when you ask for something
  • • Giving their best
  • • Sticking around
  • • Keeping you in the loop
  • • Being willing to learn
  • • Saving you time, trouble, and money when they can

In other words:

Engaged drivers act like team players because they’re treated that way.

As in any job, drivers care about the company they work for! Everyone wants to care about what they do. It doesn’t matter how tough or old-school a driver looks or sounds; they care about relationships, the functionality of the business, and their ability to contribute—not just about the dollar.

What makes drivers disengage?

A lot of turnover stems from a lack of connection with the hiring company. Even if everything generally seems OK on the surface, drivers often feel that they’re left hanging. Why?

One thing that drivers have is time. And it can work against you. With all that windshield time, they can start thinking about a problem that started on Monday; if they’re still thinking about it by Wednesday with no communication, by Friday, they might quit. For you, it comes out of the blue. But for the driver, it’s been stewing a while, with no productive outlet or solution. The key is communication.

Molehills easily become mountains when you don’t offer an opportunity for engagement and feedback. Long-distance relationships are hard, and that’s what this is.

How does a driver-engagement program work?

Drivers with 30 years or more on the road will tell you they have a family at home, and a family on the road. Earn your part in that family, and you will gain loyal drivers.

Be honest about the job.

Your first impression should include a clear, honest, and thorough job description, not a fuzzy description that’s really a desperate plea for drivers. Set applicants up for success. Tell them what they’re getting into.

Find the right people.

Seek drivers who are a fit for the roles. If you use online training, you can send training to applicants to screen them. Find out right off who is detail-oriented, who cares about finding a good job, who’s willing to learn and comply, etc. When you make it easier to recruit top-quality drivers, you reduce turnover.

Set the tone in orientation.

Be top-quality, time-sensitive, relevant, organized, honest about the job, and give drivers a great start. Again, online training is a flexible tool for engagement. If you introduce required online training at this point, you already prove that you prioritize safety and keeping drivers on the road. You can also get a sense of a driver’s attitude and comfort level. You and the driver can both make sure it’s the right fit.

Make it easy to communicate.

Communication goes two ways. Drivers should be able to hear from you without hassle, and you from them. Your technology may need to be rebooted or streamlined, but making this a #1 priority makes you a highly desirable employer.

Some ways to make this work:

  • • Work on communication between drivers & managers/owners
  • • Work on the driver/dispatcher relationship
  • • Make training quicker, easier, and more mobile
  • • Improve driver-driver relationships through driver mentors and trainers
  • • Cut down on in-person meetings as much as possible
  • • Personalize official messages when you can (ex. “Great haul last month” or “Happy birthday!”)

Make it easy to pitch in.

Drivers can assist management in solving business problems. They also contribute to the life, fun, and meaningfulness of work. Figure out why drivers aren’t happy and create training content based on the complaints expressed. Say, “I hear you.” Then take action. Use a safety competition as a fundraiser for a charity. Turn stories of some of your drivers on the road into a monthly e-newsletter. Open the door for engagement.

Give your CEO screen time.

Put together a “state of the company” message and share it with drivers each month. In a large company, a driver might only really know their dispatcher. Use messaging systems creatively to encourage and inspire from the top, as well as remind and challenge to meet goals.

Even if you do one or two of these things, it already sets you apart from most companies who do nothing to improve driver engagement! Wouldn’t it be great to have a waiting list of drivers who want to come on board with you? The driver is the only person in the company who does the work that generates the revenue to pay everyone else. Engage drivers at every level. Build a company where drivers want to work.

At Infinit-I Workforce Solutions, we help our clients get to the heart of driver engagement with online training and communication. It’s integrated, easy to implement, and powerfully effective. Read testimonials or sign up for a free demo today!

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Why Documentation is Key to Risk Mitigation

risk mitigation

What are your biggest risks in the trucking business? Apart from road conditions, hazardous freight, and unpredictable passenger vehicles, your biggest risks are financial. How do you make wise choices, mitigate costs, and stay on the black side of your ledger? Discover how the key to risk mitigation is frequent training and documentation.

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