Why Hiring Is So Tough and What You Can Do BY KEN LUCCI P rior to the pandemic, most operators found it challenging to attract and retain quality chauffeurs and CDL drivers, but now many are find-ing it close to impossible to bring on drivers and other staff, whether furloughed or new hires. Unfortunately, some fear this is not a temporary phenomenon. While many hope to see an influx of driver recruiting activity in Sep-tember after COVID-related enhanced unemployment benefits expire and summer seasonal help is no longer an issue, there are several factors that will continue to hamper efforts to attract, hire, and retain drivers in the long term. Do you recgonize any of these happening in your market? It’s Not Just TNCs … Now It’s Amazon The third largest corporation on the planet has not suffered a bit through the economic shutdown. In fact, Amazon’s profits rose 38 percent seven months into the pandemic as founder Jeff Bezos’s net worth sur-passed $200 billion, according to CNN. Amazon’s model was tailor-made for e-commerce ordering, which grew more in 2020 than online and retail ex-perts forecasted it would grow over the next 10 years. In 2019, the company Competition From Other Passenger Transportation Segments Nationally there is a shortage of drivers in all transportation sectors, including school bus, motorcoach, paratransit, senior services, and even taxis and TNCs. Numerous school bus operators across the US report that up to 40 percent of existing drivers are not returning for a variety of reasons, forcing many companies to “reimagine” the position by implementing sign-on bonuses, offering eight-hour minimums, and guaranteeing higher wages and benefits just to get contracted routes covered. Other passenger sec-tors are also going to extremes to get drivers back in seats: TNCs have such shortages of drivers in major cities and suburbs alike that ride-abandon rates have soared to more than 35 percent in some areas because would-be passengers are simply experiencing too long of a wait time and cancelling. To combat this, Uber is offering $1,500 sign-on bonuses, while Lyft is ad-vertising hourly wage guarantees as high as $33 using tactics reminiscent of their initial disruption stage. National Franchises Attracting Workers by Raising Wages to New Heights As if competing for drivers among transportation companies was not enough, another sector is vying for candidates by offering wages similar to the lower-end payscales in our industry. According to Forbes, restaurant chains like McDonald’s or Dunkin’ are so desperate for workers that some franchisees have raised starting hourly wages to between $13 and $17 plus benefits like college reimbursement. Shift managers reportedly can make between $17 and $21 per hour depending upon store location. delivered 3.5 billion packages in the US, which increased by more than 60 percent in 2020 (Business Insider). This has necessitated massive growth in Amazon’s ground delivery force, which in the US is made up of 2,500 partner entities called Delivery Service Partners (DSPs) that employ 250,000 drivers earning between $20 and $27 an hour plus benefits. Add to that 150 distribution centers employ-ing approximately 90,000 logistics workers, toiling in air-conditioned com-fort averaging $15 an hour plus flexible work hours and excellent benefits. OK, So What Can I Do? 1. Look in different places for new blood that may be a bit older. z Recently retired: prospect in over-55 communities and civic groups z Retired public employee pensioners: visit fraternal organizations and obtain state worker retiree lists z The faithful: churches, veteran groups, and private associations might be able to help z The must-find-work: unemployment office and labor department job postings 2. Advertise using new media and methods, including social media and community e-bulletin boards. z Stress flexible hours and pay z Emphasize luxury vehicles, local driving, and high-end passengers with the potential for good tips z Promote work-life balance Attract minorities and women where they can see your advertising. z Facebook groups z Local churches and civic associations z Hair salons and nail spas Competition for CDL Drivers With the Freight Industry A report from the V American Trucking Associations confirms that the need to hire drivers will increase over the next 12 to 18 months to meet rising demand to avoid shipment delays and massive price increases in goods. The biggest concern is that the nation’s CDL drivers are aging out of the workforce. The Bureau of Labor Statistics estimates that the average age of a commercial truck driver in the US is 55 years old, while industry statistics state that only one new CDL driver comes in to the industry for every three that retire. Consequently, industry stakeholders are lobbying for much higher wages and more benefits to attract new blood while region-al trucking companies are offering large signing bonuses and advertising guaranteed wages of $1,500 or more weekly. To add to this predicament, traditional advertising is not very effective hiring for any driver position. According to Coyote.com, a logistics industry data site, it takes nine ads over time to successfully hire one CDL driver and the turnover rate for new freight drivers can be as high as 40 percent after they experience the rigors of over-the-road life. 3. 26 08.2021 chauffeurdriven.com
Chauffeur Driven August 2021: Page 26
