Transportation Management Focus : Our Weekly Feature Article on Transportation Management Strategies, Bet Practices and Technologies for the Transportation and Logistics Practioner  
 
 
  - October 21, 2007 -  

Logistics News: Truck Driver Turnover – Is it Really 100 Plus Percent?    

 
 

Yes, but It’s not as Bad as it Seems; Where Do Your Carriers Stand?

  
 

 

SCDigest Editorial Staff

SCDigest Says:
  Turnover rates for longer term long haul drivers are higher than that for most other professions, but they are nowhere near the 100+ percent levels seen in the headlines.
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The American Trucking Association recently announced good news – driver turnover rates among large line haul carriers had dropped 11 percent – to an annualized rate of 116 percent per year.

While obviously a move in the right direction, a turnover rate exceeding 100% sounds incredible – with the carrier’s entire driver pool, on average, turning over each year.

While driver turnover and shortages are real issues, the reality is it’s not as bad as the headline number would lead most to believe.

High New Hire Washout Rates

Turnover rates for longer term long haul drivers are higher than that for most other professions, but they are nowhere near the 100+ percent levels seen in the headlines.

So how do the averages get to those hyper-levels? Extraordinarily high rates among brand new drivers is the key factor.

  
 
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Let’s take a hypothetical example.

Assume a truck load carrier has a 1000 drivers in its fleet operations.

Let’s further assume 25 percent – or 250 of those drivers - quit in the year.

The carrier obviously has to replace those drivers. So it hires another 250 drivers. But turnover among those new hires is extremely high – perhaps 75 percent.

So to get the needed 250 replacement drivers for turnover among longer term drivers, the carrier may have to hire 1000 new drivers, 750 of whom also quit in the first year.

Add the 250 original drivers who left, plus the 750 new hires who left in the first year, and you have 1000 total drivers who quit during the year. With a base of 1000 drivers to start, that means – voila – a 100% turnover rate.

Got it? The bottom line is that in our example, 75 percent of the carrier’s main pool of drivers didn’t turn, yet the turnover rate would be calculated as 100 percent.

Carrier Turnover Does Vary

Within the overall industry numbers, there can still be substantial difference in the turnover rates between different carriers. As turnover rates do impact a carrier’s service and quality levels, understanding those turnover levels should be an element of carrier evaluation and monitoring.

Trucking industry experts have suggested the following guidelines:

  • Under 25% - Outstanding
  • 26% - 50% - Excellent
  • 51%-75% - Good
  • 76% - 100% - Fair
  • 101% - 125% - Poor
  • Over 125% - Dismal
 
     
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