Our Talent Sustainability effort aligns directly with the State Freight Plans, and U.S. Department of Transportation National Freight Strategic Plan, and specifically addresses truck driver, and workforce shortages highlighted as key regional-national safety & security issues in all reports.
We are addressing the commercial truck driver shortage as follows
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Goal–With a concentration on dislocated U.S. Veterans, and other vulnerable population segments (including Millennials), the tying together of job creation with the growing shortage of commercial truck drivers is the Goal.
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Incentive–Providing a fully funded scholarship toward a sought after degree/certificate creates Incentive.
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Hope– Establishing an opportunity for Intergenerational Mobility through a program allowing a driver to bestow their scholarship to a family member (e.g. child, grandchild etc..), and provide those drivers coming from families where Generational Poverty is the Norm, a sense of Hope.
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Motivation–Leveraging an executive mentoring approach that guides the driver candidates through the education required for a possible new career within the hiring firm/industry creates Motivation.
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Public Trust–Measurable increase in transportation security, and safety creates Public Trust.
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Satisfaction–Quantifiable reduction in transportation costs creates Satisfaction.
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Partnership comprised of corporations, government, and academia makes it all happen.
Business Exposure
For a perspective on cross industry exposure to commercial truck driver shortage, please glance at the 2016 Fleet Owner report http://fleetowner.com/fleet-management/2016-fleet-owner-500-1-100. A company listed as owning 580 “Total Vehicles” requiring a truck driver with a commercial license, (conservative estimate of 35% annual driver turnover & annual cost per driver between $5,000.00 to $10,000.00 for recruitment alone) places the annual truck driver recruiting expense of that firm at $1.01 million to $2.02 million. This a reality for the industry as a whole. The strategy for all involved is to reduce cost by 50%, increase retention by 100%, and create a customized scalable offering that is self sustainable.
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There is “NO” existing remedy to the commercial truck driver shortage as all across-the-board incentives are found to be lacking,
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Driver Retention is KEY with continually high turnover causing following:
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Increasing “Opportunity Loss” from driver turnover as economy improves,
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Loss of investment in driver training dollars,
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High Recruitment Costs averaging $5k to $10k per driver.
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Corporate truck transportation requirements are either totally outsourced, or part outsourced to 3rd party carriers along with their own drivers.
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As the economy improves, corporations will face growing issues with trucking carriers (both outsourced, and their own) as there will be greater aggregated demand for increased trucking capacities to move more goods, yet a dependence on a continually shrinking supply of truck drivers.
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All corporations heavily dependent on commercial trucking, faces following:
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Spiraling costs for commercial trucking services as the demand grows exponentially for these services from an improving economy, and is coupled to an ever shrinking supply of commercial truck drivers,
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Ongoing customer service impact due to delivery issues,
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Increased safety, and security issues due to reliance on trucking fleets moving more product with less manpower,
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Continual economic-safety-security repercussions resulting from the domino effect,
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Companies are likely in the continual planning stages to re-engineer dependence on status quo commercial trucking, and facing significant challenges.
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This is an issue that many CEO’s are not aware of, and the consequences are significant.