Did you ever ask yourself why a driver shortage results in high driver turnover? As industry professionals we understand that the relationship definitely exists and readily accept the fact that a tight driver labor market will force higher turnover.

But again; why? Think about this way - in 2011 the trucking industry could easily be short 300,000 drivers. That's roughly 10% of the total 3,000,000 truck drivers working today. Instead of high driver turnover, why doesn't each individual trucking company operate with the same 10% shortage of drivers while experiencing little turnover? Why does a shortage of drivers force high turnover?

The answer can be found in just about any business textbook but surprisingly, not under the section labeled ‘Supply and Demand'. Instead, the most intuitive answer is in the section that discusses the relationship between marketing, customer satisfaction and customer loyalty. However, before discussing our textbook answer we need a little background regarding historical competitive strategies for driver recruiting.

Competitive activities for attracting driver labor usually focus on the ‘Employment Offering', the three major influences that most impact a driver's employment decision. These influences are Compensation (includes benefits), Home Time and Equipment.

Trucking companies compete aggressively within these three influences and we're all familiar with the sales pitch: ‘Home every weekend'... ‘Average equipment age is 2.5 years'… ‘$0.39 per mile with a $2,000 sign on bonus'. The tighter the driver labor pool becomes, the more aggressively truckers compete.

Now let's open our textbook. Competition for driver labor is, in effect, marketing. Each trucking company is advertising and positioning their ‘product' (Employment Offering) in hopes of reaching the widest audience and attracting the largest group of buyers (applicants).

After a driver hires on, he starts becoming familiar with the actual product. This is where customer satisfaction, or buyer's remorse, starts to develop. If the driver is satisfied, he found the product features - Compensation, Home Time and Equipment - to be as advertised. If the driver is dissatisfied, it's usually because he is not receiving the amount of wages, frequency of home time or quality of equipment promised.

Here's the lesson we need to understand and apply to our retention efforts. Unsatisfied drivers will leave as soon as they find another product offering they think is better. Satisfied drivers will be loyal employees until the current product becomes outdated or underperforms.

This is why trucking companies experience a much higher concentration of turnover in the 0-90 day tenured employee group when compared to more senior drivers. For many new drivers, product dissatisfaction happens quickly as they get a look at their assigned truck, first check or have to work their first weekend away from home. New employees unfamiliar with the product immediately begin looking for reinforcement that the features are as advertised. One or two disappointments will cause them to quickly look for an alternative product.

Senior drivers are basically satisfied with the product. Additionally, increasing years of seniority help develop product loyalty. As time passes, drivers become comfortable with their work life conditions and, in many cases, receive modest perks for their tenure in terms of higher compensation, newer equipment and a choice of job boards. However, there is always the threat of a competitor's new product offering that promises more while offering an attractive sign-on bonus as additional incentive.

Understanding the impact of marketing, customer satisfaction and customer loyalty on driver turnover can help us develop retention solutions.

In the case of new drivers, make sure your product features are accurately advertised (keep in mind terminal or regional differences) and closely monitor new employees during the first 30 days. If there is a failure amongst any of the three product features - Compensation, Home Time and Equipment - do everything in your power to make it right.

In the case of senior drivers, make sure you remain competitive with your Employment Offering. Additionally, you need to frequently communicate product features and benefits. For example, a competitor may be paying $0.03/mile more but your higher weekly miles make average annual earnings at your company higher. Let your drivers know just how attractive your compensation is. Don't let product misperceptions and infrequent communication result in unnecessary driver turnover.

I'll close my discussion with a confession. I understated the reasons for driver turnover and oversimplified the solutions for driver retention in order to make my point about remaining competitive and accurate with your Employment Offering. While your unique product offering is critical to your retention efforts, there are many other activities required to reduce driver turnover.

If you would like to learn about other critical driver retention activities, I refer you to the following Big Truck TV Videos:

• The Importance of a Consistent 5-Point Recruiting Chain
• Recruiting & Retention: Two Sides of the Same Coin
• Setting up a Work-Life Improvement Committee
• Driver Managers and How They Can Effect Retention