Many asset-based carriers utilize freight broker and data technology to recruit truck drivers and reel in new talent. It is considerably more important to find talent quickly to fill the ever-growing needs of the freight and shipping industry. The issue with recruiting and retaining truckers is that it is difficult to do so without understanding actual market trends and volatility.
According to MH&L News, “Recruiting is still the top challenge [for asset-based carriers]. So, companies are working on retaining the workers they already have.” Recruiting truck drivers is not only the top challenge for carriers, but it will always remain one of the highest priorities. And it’s critical to know how carriers can tap data and analytics technology to boost driver morale and attract more talent.
The truck driver shortage and its relationship to the capacity crunch
The industry is growing and will only continue to suffer from finite trucking capacity. Driver retention is a growing issue as the industry expands. It was predicted the industry would be down approximately 200,000 drivers by the end of 2020. This is an obvious issue as it implies added trouble with trying to recruit truck drivers. It is a difficult sell to convince talented drivers to work for a carrier when retention comes with a high risk of turnover. The main concern for the truck driver shortage is its relationship to the capacity crunch. There just are not enough drivers to maintain the amount of freight that needs to ship, especially since the pandemic hit in early 2020. As the spot freight market rose, drivers began to earn higher and higher wages on one-off loads. In turn, that slows down contract freight and reduces how much contracted truckers earn. This also overloads the drivers that are currently working for freight companies. As a result, more and more drivers will leave.
Applied technology increases profitability for carriers that helps to increase driver retention
Applying and implementing the newest freight and shipping technology will inevitably lead to a more prosperous company. Utilizing applied technology helps freight management reduce issues during transportation that cause drivers and companies to lose money. The use of the right TMS will make tracking easier and solve many issues. Unfortunately, a TMS can only go so far. And the real value lies in connecting with the granular and national freight market analyses, such as those found within FreightWaves SONAR. The more money a driver is paid, the easier it is to recruit truck drivers. That fact alone increases overall driver retention, so in a sense, success as a carrier hinges on how well that carrier understands market activity. Additionally, carriers can also use technology to avoid losses due to deadheading in trucking, while still promoting more short-hauls to appease drivers, adding up to comprehensive transportation optimization.
Added benefits of freight tech to recruit truck drivers
Aside from increasing driver satisfaction, which is a key reason that drivers stick with a given company, there are other benefits for freight technology to recruit truck drivers, such as:
- Faster processing and tracking of driver location and estimated time of arrival. This will allow the driver to make more money by knowing the information upfront.
- Less hassle in managing paperwork when digital driver apps are in use. An obvious perk, technology reduces the time wasted on handwritten paperwork. After all, time is money.
- Increased route optimization to speed transportation. Creating the proper, fastest and optimized route will inevitably reduce the amount of time a driver is on the road. That will save the freight company money and increase the amount the driver makes in tandem.
- Maximizing profitability per load that helps to add to driver wages. Of course, increased profitability means knowing when to accept or reject a tender, and that information is invaluable for fleet asset management, including allocating equipment and drivers alike.
Become a stronger asset-based carrier with freight tech-driven hiring and retention strategies through freight data
By using the proper strategy for real-time freight data consolidation and analysis, the ability to recruit truck drivers and retain the talent will greatly increase and benefit each freight company. The entirety of being an asset-based carrier is the capability to provide transportation. Without reliable, satisfied drivers, transportation providers are knocking on the door of bankruptcy. Using freight data will certainly keep a carrier top-tier and competitive in a growing industry that’s fighting over drivers. Do not be one of those carriers that cannot fulfill the needs of the company or your drivers.
Meanwhile, optimizing and maximizing fleet utilization will prove fruitful for both a carrier and the truck drivers. In the pandemic-ridden world of 2021, it is important to maximize each step to keep up with demands and stay in business. Request a FreightWaves SONAR demo to get started by clicking the button below.