By Lisa Henthorn, V.P., Corporate Communications & Marketing
It goes without saying – trucking is a different animal, with drivers on the road sometimes weeks at a time – so it can be hard to draw comparisons between the trucking industry and the broader landscape of the business community when it comes to basically anything.
Even so, statistics indicating U.S. companies may be shifting focus away from employee retention efforts to cost-cutting strategies could prove worrisome to the trucking industry, especially coupled with the worst driver shortage of all time and turnover rates for smaller fleets growing at an all-time high.
It’s true, 51% of U.S. employers are laser-focused on cost management as their top priority in 2016 after prioritizing talent retention in 2015, according to a new compensation survey conducted by Buck Consultants at Xerox, finding that retention budgets stalled out in 2013 at 3%.
Meanwhile, rising costs for retaining drivers have translated to trouble for shippers, primarily due to larger fleets attracting drivers away with higher pay, bonuses and better benefits. In this climate, these smaller truck fleets are the most vulnerable, especially as federal truck safety regulations cap the number of miles and money drivers can earn.
While these companies continue to battle retention costs, it’s important to find savings in other facets of their business. By finding more efficient ways to distribute, savings can be found in nearly every area of the supply chain. Fortunately, solutions like Eyefreight’s cloud-based transportation management system (TMS) can help reduce distribution costs, slashing shippers’ net landed cost of goods and potentially reallocating those savings to retaining valuable talent.
To better navigate the changing market of transportation and logistics, including the battle for top driver talent, companies need to gain a broader view of the disruptive qualities of TMS and how to best leverage an effective solution for their business needs.
Check out Eyefreight’s white paper on “Combatting the Rising Costs of Distribution” through cloud-based automation technologies to learn more.