Freightwaves recently posted an article explaining the factors for high driver turnover in the trucking industry based on a survey of TCA Profitability Program participants.
Among their findings is that turnover is heavily weighted toward drivers with limited tenure, 180 days since their original hire date. One implication of the survey is that the trucking industry needs to do a better job of onboarding new drivers and getting them adapted to some of the unique aspects of driving. The survey also found that the longer drivers haul the more likely they are to exit the profession.
One of the findings also points out the economic variability of the trucking career as a driver of turnover. Most drivers are compensated on a per-mile basis and the variability in miles driven per week directly translates into variability in the drivers weekly take-home pay.
That level of weekly pay variability puts extra demands on drivers to develop solid financial management plans. When the driver is the company and when the variability impacts the income of the entire business not just the weekly pay of a driver then the effects are compounded.
An ability to level out accounts receivables and create a steady flow of cash into the business is critical. Factoring can play an important part in how a business can minimize the ups and downs of cash flow and produce a reliable steady means of income that allows the business to plan better, helps ensure that drivers are compensated on time and enables planning.