Archived Articles

Drivers: The Lifeblood of Your Company

Mark Lavinsky, President, NBI, Atlanta, GA

Have you ever talked to one of your drivers and, at the end of the conversation asked yourself, "Who does this guy work for?" As we all know, drivers are the lifeblood of virtually all producers yet most producers spend little time thinking about how important their drivers really are. With all due respect to your sales force, who comes in contact with your customers more than your drivers do? Have you ever lost a customer as a result of a bad driver? Have you ever calculated what your "true cost of hire" for a driver REALLY is? Have you ever REALLY calculated what a bad driver can cost your company?

Let’s take a quick trip down memory lane…Years ago, we would place an ad in the local newspaper for drivers and the phone would ring off the hook. We’d select the best applicant, hand them the keys and away they went. Then the boom of the 90’s came and finding drivers got a little tighter. The phone stopped ringing as often because the unemployment rate went down. As a result, we as an industry were forced to lower our driver standards (no one lowered their standards on purpose, but let’s face it, we have a product to deliver and if we can’t deliver it on time, our customers will find someone who can!) During the 90’s we were also faced with the "grass is greener" syndrome. (Remember? Look at drivers funny and they’d quit, knowing there are dozens of other driving jobs out there.) Let’s face it, who in their right mind wants to be a driver in the first place? Long irregular hours, dirty muddy stressful working conditions and, in some parts of the country, the work is seasonal. It’s really not a career path most folks are clamoring to enter. The baby boomers are getting older and the potential driver pool is shrinking to a tiny puddle. The Bureau of Labor predicts that by the year 2005, the young adult labor pool (age 25 to 34) will shrink by 4 million people.

Now we’ve entered a new decade and things have changed once again. The economy has slowed and the unemployment rate has risen. More and more drivers are now out of work. Does that mean when we need a driver we can expect a bigger pool to choose from? It probably does, but who is now responding to your help-wanted ads? In markets where the unemployment rate has inched up, it’s usually not the best drivers out of work. Quite the contrary, it’s the worst drivers who usually are the ones who have been laid off and looking for employment. Are you going to hire someone else’s problem driver? How about the over-the-road driver? Are you going to hire him? If you do, be prepared: usually the first thing you’ll have to do is "whip the cowboy out of him." As we all know, driving a mixer truck is not like driving any other commercial vehicle.

As the economy slows, shouldn’t we be placing more emphasis on quality drivers? Many have said, "It’s hard enough to find business and it’s even harder to keep it, to keep good customers." Why would anyone take a chance with a driver who might cost your company a customer?

So what can we do? Can we as individual companies and collectively as an industry turn this trend around? Can we finally stop the "revolving door" of below standard drivers? Can we convince our drivers to take ownership of their job from both a safety and customer service perspective? Can we lower our accident rates and reduce costs? Maybe the better question should be can we afford not to! Shouldn’t our strategic plans address driver related issues?

Pro-active versus re-active: Now that the economy has slowed, shouldn’t we as an industry start to reverse the trend and begin to raise our standards back to an acceptable level? Shouldn’t we mandate that all of our drivers be professionals? Shouldn’t all drivers have personal qualities of a higher standard and be assets to our companies? Drivers that will stay on the job and be safety conscious! Easier said than done!

How well are your drivers trained? We hire a driver, put them with a driver trainer and in a few weeks hand them the keys to a truck. Sound familiar? This is the typical scenario for most ready mix companies. Many companies will have weekly, biweekly or monthly driver meetings to talk about driver issues, but does this really constitute training?

·         Are your drivers really "trained"?

·         Do your drivers really understand the importance of a proper vehicle inspection?

·         Do your drivers know what preventive maintenance really means?

·         What about issues related to product quality or environmental laws?

·         Do your drivers always practice safe defensive driving skills?

·         And what about customer service skills?

Many producers feel their area of expertise is concrete, not training. This is probably true with most companies, but does that mean the training of your drivers should be minimized? If it does, it’s just a matter of time until you lose another customer or worse. Incorporate training as part of your business culture. Programs should be customized to meet your critical needs.

Think about outsourcing as a way to train your drivers. Outsourcing can actually save your company time, effort, energy and money in the long run, but be cautious - make sure you thoroughly investigate any company you might consider using before you sign on the dotted line.

Understand what drivers want. According to industry research, here are the top six items drivers look for in a company.

·         Health insurance benefits with a reasonable deductible and good family coverage

·         Retirement benefits like a 401k and profit sharing

·         A good atmosphere and a fair dispatcher

·         Clear, honest communication within the company through easy-to-understand and clearly written policies

·         Quality trucks with comfortable seats

·         A financially healthy company that lives up to its promises

Drivers: We all know we can’t live without them.

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As a recognized leader in our field, NBI is regularly quoted in industry articles and surveys; we speak often at trade shows and seminars and serve as a reference for the industry. Some of the coverage generated is listed below:

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"Program fulfills need for qualified drivers"

 Concrete Products, August 1998

In recent years, the ready mix industry has experienced a critical need for qualified, well-trained drivers. Shortages have prompted some companies to turn away business or limit expansion plans.

This is partly because of stringent federal licensing, drug testing laws and a decrease in the primary age group (21 to 29 year olds) that normally makes up drivers. Also, the U.S. Department of Education has restricted the federal monies for students wishing to enroll in training programs, therefore further reducing enrollment in the driving schools and limiting the potential workforce of this industry. In the face of this current shortage, the American Trucking Association predicts that the industry will need an estimated 450,000 new drivers each year through the year 2005.

Atlanta-based NBI was founded in 1981. It supplies employers with qualified workers and designs customized training programs to satisfy individual company requirements. NBI has recruited, screened and trained over 5000 drivers in the last fourteen years, and notes that 89 percent of them are still on the job.

Otis Russell, president of Alabama Concrete Industries Association, sees many of the 60 companies in his group successfully recruiting new drivers through NBI. "We had people who were hesitant at first because of the financial commitment," he says. "But they've found the commitment has been recoverable in 18 months to two years. Most companies who we talk to have been satisfied with the quality of the drivers' work ethic and their ability to do the job." A driver's enrollment contract lessens the financial burden, he adds.

NBI's "Growing Your Own" training centers are designed to have trainees ready for their CDL license within a four-week period. This classroom, track and local driving curriculum provides a constant source of qualified drivers through the following steps:

* Analyzing a company's needs. After working with a company's representatives to determine the ideal driver's profile, NBI can establish training process needs. The following variables are considered: driver needs for a 12-month period, driver requirements, entry/training requirements, staff and personnel, and driver availability.

* Developing a recruitment strategy to find appropriate trainee candidates. NBI utilizes a variety of strategies of recruitment, including newspaper ads, television and radio ads, job fairs, and local community outreach.

* Screening potential candidates. Once identified, candidates' worthiness is validated through employment history verification, drug screening, DOT physical examination and in-depth interviewing.

* Customizing a training program. A competency-based curriculum varies from person to person based on their individual needs. Students must attend the program for a minimum of four weeks and pass each competency to graduate.

* Formulating a plan for driver retention. If there are indications that potential trainees have no desire to stay a minimum 18 months on the job, they will not be accepted into the program. Self-esteem building and motivational techniques are incorporated into the program, and according to the company, they help aid the retention effort.

As trainees enroll in the program, they sign forms for file documentation. A "letter of commitment" states they'll stay on the job for a minimum of 18 months. A tuition reduction, amounting an approximate $1,000 savings, is available for those trainees who remain on the job for 18 months.

An "enrollment contract" specifies that students understand their financial responsibility, and agree to repay their training costs, according to a predescribed payment schedule with their new employer. Training costs can be recovered through trainee payroll deductions upon completion of training.

Reliable recruitment

"We started using NBI in the fall of 1997," said Tom Hawthorne, Vice President of Southern Concrete Materials in Charlotte, N.C. "Our new drivers are the key to the company's success. They're the ones going out of the gate meeting with customers. In the beginning, we were 'rolling the dice' with getting serious candidates. But after NBI established its programs with us, everything fell into place. Our entire approach to getting high quality drivers has changed for the better."

"It's hard to find good qualified drivers because of the CDL-competitive market here in Charlotte. It's a transportation center down here, but NBI has been a good source so far," Hawthorne added.

Pat Strader, operations manager at Texas' Houston Shell & Concrete, is sold on NBI. "We can start with a wider base of applicants, funnel down, then skim the best drivers," he says. "This is much better than putting an ad in our local paper saying 'driver with experience wanted, must have CDL'."

"The classified ads brought in bad drivers with bad driving records who were bad for our company," adds Houston Shell & Concrete's Lori Gunn, Risk Manager. "Our turnover rate was almost 100 percent, but since hiring through NBI over 93 drivers in the Houston area alone and another 10 in Austin, our turnover has dropped considerably."

"How to avoid hiring someone else's problem"

 The Concrete Producer, October 1997

Driver recruitment is as important as training in unique 'Growing Your Own' hiring approach.

Many ready-mixed concrete managers will tell you high driver turnover, which creates scheduling problems and high rehiring and retraining costs, is one of their biggest problems. An almost universally low supply of competent, skilled people who will tolerate working in a tough environment and regional labor shortages intensify competition by creating high market wages.

Plant managers will often do anything to get new drivers if some trucks are idle. They may even ask competitors whether any former mixer drivers need work or if anyone knows other former professional drivers who need a job.

Other managers would tell you this is akin to a NFL general manager calling another and saying, "We cut our place-kicker today. How can I contact the one you just cut?" This approach may result in hiring someone else's problem. But if that general manager brings a former professional soccer player with tremendous leg strength but who has never placekicked before, the coaches can develop him their way.

Similarly, the "Growing Your Own" hiring strategy, developed by the NBI, attacks the driver-staffing problem at an earlier stage than training programs. In this strategy, recruiting consultants find good people first; only then does training start. Managers take a low-risk gamble because applicants have completed a nominal four-week training program, which indicates dedication. Although startup time is longer, producers who incorporate this approach into their strategic planning retain drivers longer and avoid hiring emergencies later.

In most cases, the program seeks candidates who don't hold a Class B commercial drivers license (CDL). Why? Producers who adopt the "Growing Your Own" approach realize that you can't compare driving a mixer truck with any other professional driving job. The program meets CDL requirements, but the main emphasis is on industry-specific training.

Trainers stress unique maintenance and safety requirements in mixer driving. A recruit who has previously driven for a living may never appreciate the uniqueness of mixer-truck operation.

Wanted: Driver staying power

A key ready-mix producer with many plants in north-central North Carolina says previous driving experience sometimes forms lax attitudes regarding unique safety issues in mixer-truck driving. Some experienced professional drivers aren't receptive to warnings that their mixer trucks are susceptible to flip-overs and getting stuck during off-road driving. "Some drivers who come from other industries aren't good about maintenance either, things like greasing trunnions and rollers," he adds. "Sometimes their attitude is 'I know the truck better than you.' And some of these guys feel like they're above performing maintenance."

In addition, unlike many other professional drivers, most mixer drivers need to develop an ongoing rapport with customers because they deal with the same ones day after day. Some long-haul drivers deal with a given customer once in their entire career.

Some of these guys think it doesn't matter how they conduct themselves in a particular place because they'll never be there again. As the company grows its own mixer drivers, NBI emphasizes the importance of customer relations, since ready-mix production is a local business.

Driver turnover is often caused more by resignations than terminations. One producer supplies a great deal of commercial work in North Carolina's burgeoning "Research Triangle" area of Durham, Chapel Hill and Raleigh. Since unemployment is around 2% in this region, competition for high quality labor is high, and so are wages.

"A ready-mix driver's working conditions are not ideal in the summer, so a lot of guys seek more comfortable surroundings," one manager says, "Invariably there'd be a late load, and guys couldn't tell their wives when they'd be leaving work." The managers not only wanted to replace defections, but wanted about 20% more drivers than mixer trucks to compensate for vacations and stay at full production.

They know too well the cost involved in replacing drivers. In the four years before the company adopted this new hiring approach, the annual attrition rate for the company's 150 drivers was 29%. Management estimates that it costs about $4,000 to recruit, hire and train a new driver. 

Finding, training the best candidates

A company first polls its managers and develops a list of positive and negative driver attributes and creates an "ideal driver profile." Managers select training areas that will develop recruits' ability to meet profile criteria.

For example, a group of driver trainers, mentors, dispatchers and others compiled a list of desired driver attributes, including ability to deal with customers, flexibility in handling various situations, dedication and safety consciousness. Kevin Jackson, operations manager for Sherman Ready-mix's South Alabama division, lists three negative criteria - a lack of dedication and a tendency toward belligerence on the jobsite - that were used to reject drivers when the company bought a plant, inherited nine trucks and adopted the program to fill those positions in February 1997.

The recruitment process starts with newspaper or radio advertising or job fairs. The pool of respondents shrinks as candidates are screened over the phone; remaining candidates attend an orientation that provides driver requirements. At his point, recruiters also promote the occupation's better-than-average starting salary, excellent benefits and guaranteed hours. The pool shrinks further as recruits' employment histories are verified; they take a drug test and DOT physical, and participate in an interview that evaluates motivation and attitude.

Managers at the participating company also interview recruits and reserve the right to reject recruits based on the interview or background check. The result is a 1-to-1 ratio between recruits and available positions. If the company rejects a recruit, the recruitment process starts all over again - there's no going back to the original respondent pool.

Recruits' backgrounds vary widely, but employment history often indicates patience, dedication and plenty of human contact. Sherman International's Jackson has hired a former chief petty officer from the Navy, a Pentecostal pastor, a bartender and a prison guard.

The selected recruits enter a minimum four-week training course at the plant, and NBI meets with company managers to formulate a customized training program. At Sherman Ready-mix, training included fueling procedures, negotiating a driving course and classroom instruction for CDL education.

A low-risk investment

Trainees are not employees until they complete the program. The company pays for training when the training is completed and is reimbursed by driver paycheck withdrawals. Night or weekend training is available so trainees can remain gainfully employed during training.

Some companies forgive part of the training costs when the driver is still employed after a given period. One company pays NBI $3,500 per driver after training and withholds $24 per week from drivers' paychecks to cover training costs. When the driver is still employed after 18 months, he owes a balance of $1,628. The company forgives this balance, and this amount combined with "soft costs" (facilities, trucks, fuel and insurance), subsidizes driver development.

Proofs in the results

Producers who grow their own drivers can quantify reductions in driver turnover. By last July, one producer had twelve months to evaluate the program and had lost four of 80 new hires, compared with its previous 39% turnover rate.

Improved service isn't as easy to measure, but Sherman Ready-Mix's Jackson reports substantially fewer customer complaints about drivers hired under the new approach. 

The approach isn't perfect. Poor drivers occasionally slip through the background checks, and managers who set training criteria sometimes realize they've left something out, so additional training sessions are necessary.

As you might expect, many try this approach on a small scale to evaluate results. One ready mix producer grows its own drivers as a supplement to the hiring practices it has used in the past, but is committing more resources to the new approach. 

"New Training Program for D/FW Concrete Divisions,"

The Lonestar Quarterly, July 1997

The Dallas/Ft. Worth concrete divisions have turned to an outside source for the training of its mixer truck drivers. NBI, based in Atlanta, has demonstrated an ability to help drastically lower driver turnover.

While training mixer drivers for another company, NBI was able to reduce the company's turnover rate from approximately 60% to approximately 20%. Doing this has helped the company increase productivity with the use of a labor force that does not need constant training.

Pioneer has seen the same results here in Dallas with the new drivers trained by NBI. The reduced turnover is accomplished by asking all new drivers to sign an 18-month commitment to the company in exchange for the training they receive. All new trainees receive at least four weeks of training by NBI followed by two days of training with the Quality Control department, then at least 10 full days of training with a Lead Driver. As of publication, NBI has graduated approximately 250 drivers.

All of the applicants that apply with NBI go through a series of interviews and exams to ensure that Pioneer is getting only the best employees. Thus far all of the new drivers have proven to be excellent workers with good work ethics. NBI's efforts will go a long way to ensuring a stable work force for Pioneer Concrete.

Driving Dallas to success

The economic boom in Texas may be good news for Pioneer's business but the Lone Star State's low 4% unemployment rate is bad news for employee turnover and recruitment.

Pioneer's concrete operations in the Dallas-Fort Worth area were experiencing a chronic 100% turnover of mixer truck drivers. It was becoming impossible to recruit experienced drivers, which was impacting on Pioneer's ability to fill customer orders at a time of record concrete volumes.

In desperation, North Texas Operations Manager Tommy Abbott decided to do something about it, so he turned to NBI. "I saw a competitor's program where NBI was recruiting and training concrete truck drivers very successfully," Tommy says. "I persuaded them to open a similar school in Dallas."

The training is conducted for us at a former Pioneer concrete plant, which is an ideal training site. Four mixer trucks are committed to the program. A team of four instructors runs a four-week course. Applicants for the program usually have no truck driving experience.

"They are put through a rigorous screening and interview process," says Tommy. "Only about 10% of those who apply for the school are accepted and of those about 25% of those drop out of the program." In the 18 months that the program has operated, about 130 drivers have graduated. Tommy says it has been a success. "By far the majority of drivers have stayed with Pioneer, using their new skills to fill customer orders across Dallas and Fort Worth. Because of the success in Dallas we have just implemented a program in our Houston operation."

Texas trains its own

"I'll be here as long as they want me," says Curtis Garrison, one of the Texas drivers' school's graduates.

Just 30 years old, Curtis has held a mix of jobs including driving a flatbed truck for an air-conditioning company, manager for a discount store and a cable television installer.

Curtis was a successful candidate for the four-week course, which covers road driving skills, road laws, government regulations and customer relations training. "It was about what I expected," said Curtis. "During the course we take an exam to judge how we are doing. Then we take a written and practical test set by the Department of Public Safety to get our license."

Prospective drivers are not paid during the four-week course, and have a further two-week wait before the first paycheck arrives, so the students need to be committed to seeing the course through.

Tommy Abbott explains: "Pioneer puts a lot of effort into training our drivers. We feel that if the students are prepared to make a financial sacrifice, we have a shared commitment to making it work."

"Prior to running this course we would hire people with some driving experience and trained them with an established mixer driver, but we found often that we were reinforcing bad habits," said Tommy.

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