Weak freight demand has the trucking and logistics sector in a cost-cutting mode. Retaining more drivers is one way to improve your bottom line in 2024.
First, more bad news. In March, the American Trucking Associations’ for-hire truck tonnage index fell 0.8% from the previous quarter and was 2.4% lower than in Q1 of 2023. Publicly traded truckload carriers reported double-digit revenue falloffs in Q1 of 2024.
The American Transportation Research Institute’s annual report on critical industry issues ranks the economy at No. 1, followed by truck parking. As of October 2023, these two replaced fuel prices and the driver shortage. Meanwhile, driver retention fell from No. 7 to No. 8.
However, driver retention could top the list of potential cost savings. Historically, driver turnover for midsize to large truckload fleets averages 94%. The rate recedes typically during economic downturns, but that’s when it hurts the most. Industry studies show fleets spend between $8,000 and $12,000 per head to replace drivers.
Consider the savings potential from reducing driver turnover by an extra 20% this year. For example, a 250-truck fleet could save $415,000 in training expenses by retaining 50 drivers rather than replacing them at $8,000 each.
This article shows how some of the nation’s top fleets use custom apps to significantly reduce turnover by improving driver satisfaction. After reviewing their results, use a calculator to assess your savings potential with this easy-to-deploy technology.
Building a Better Driver Experience
Pay consistently ranks as the top reason drivers consider leaving their carriers. The economy makes it difficult for fleets to increase pay, with the National Transportation Institute forecasting a 1.45% growth in driver wages in 2024.
Fortunately, like all professionals, drivers are motivated by more than money. They consistently rank company culture, communication, and relationships with dispatch as top reasons for staying or leaving.
The stress and anxiety of starting a new job contribute the most to early turnover. Industry research shows that about 60% of newly hired drivers quit within the first 180 days of employment, and more than 30% leave within the first 90 days.
Companies that use custom driver apps can give drivers a first and lasting impression by including all the tools and information they need to do their jobs, all in one place. Fleets can accelerate development using a custom app platform by choosing pre-built components and tailoring them to specific needs without writing custom code.
Below are two proven strategies to increase driver satisfaction and cost savings with custom driver apps.
1. Simplify Driver Duties
Uncertainty is the enemy in an industry where time is money. To stay happy, drivers need immediate answers to work-related questions such as, “How much will I make on my next settlement?”
With a custom app, drivers can scan and attach paperwork from their smart devices, view completed trips, and know exactly what to expect on their next paycheck. Additionally, drivers get step-by-step workflows for each load, including trip-planning tools to select locations for fueling and rest breaks, turn-by-turn voice navigation, and single-menu access to training materials, policies, and procedures.
Central Oregon Truck Company (COTC) often tops the Truckload Carriers Association’s Best Fleets to Drive For list. The Redmond, Ore.-based flatbed hauler with 300 trucks had a turnover rate that matched the industry’s 94% historical average. After partnering with Eleos to build a custom app, COTC saw driver retention improve by 18%.
The fleet’s app gives drivers all the functions they need to perform non-driving tasks using in-cab tablets and personal devices. Management directly credits the app for improving retention. Other app benefits include a feature that gets drivers more involved with the company’s mentoring program.
One of many ways drivers benefit from the app is a crowdsourcing feature that allows them to adjust and confirm entry and exit points at facility locations. COTC and its drivers use improved navigation accuracy to save time and increase safety.
2. Amplify Driver Training
Drivers receive extensive training during onboarding meetings but often need access to helpful information about loads or how to operate a new make and model of tractor or trailer they are assigned when out on the road.
Custom apps can give drivers on-demand access to a vast digital library of training materials and resources. The contents can be tailored to their needs, enabling them to do their jobs more efficiently and confidently.
A custom app platform that integrates with existing back-office and third-party systems quickly enables fleets to give drivers one-click access to relevant information.
NAPA Transportation, a flatbed, dry van, and refrigerated hauler with more than 400 trucks based in Mechanicsburg, Penn., created an extensive media library for its custom driver app from Eleos. Drivers access training materials from the menu, such as videos on operating equipment like new reefer units.
NAPA’s custom mobile app has improved driver satisfaction, helping to lower the fleet’s turnover rate to less than 55%. Keeping more drivers behind the wheel has drastically reduced the need to train new drivers, resulting in savings of more than $1M annually, said Jim Brighton, IT director.
Another essential strategy fleets use to improve driver satisfaction and reduce turnover is continually gathering and using driver feedback and suggestions to evolve their mobile technology. With the Eleos platform, fleet administrators can act on input by creating and deploying updates through the App Editor, showing drivers they listen and respond quickly to their needs.
The Next Step to Cost Savings
With weak freight demand prompting cost-cutting measures, the trucking and logistics sector can realize significant savings with custom apps. The technology can simplify driver duties and provide fast, convenient access to information and on-demand training. Moreover, fleets can gather and use driver feedback to make continuous improvements and emerge stronger when the market rebounds.
Ready to propel your company to greater profitability and stability? Explore the potential of custom apps to reduce driver turnover and boost profits. Contact us to learn more about developing one for your fleet’s needs.
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