It has been said that we hire 90 percent of our problems. In all probability, that is an understatement. Poor performance, late deliveries, incomplete or improperly completed paperwork, illegal jobs, equipment abuse, customer dissatisfaction, accidents and high driver turnover can, in most cases, be directly attributed to poor or improper driver hiring practices. Years ago, before deregulation dramatically increased the demand for drivers, knowledge and training on the subject of proper hiring the “best of the worst” in an effort to keep their trucks rolling. As a result, many poorly qualified drivers have found their way into the work force and the quality of drivers has declined. As a consequence it is not only important to know how to find, screen, hire and retain drivers, it is critical to the continued success of the company. This publication is designed to define the problems and ramifications of improper hiring, and to provide trucking companies with solutions to this growing problem.

Legal Ramifications

Today, plaintiff attorneys know as much, if not more, than the average trucking company about proper hiring and processing of drivers. In cases where a plaintiff attorney can prove to a jury that the trucking company did not hire drivers of acceptable competency, or that they did not hire drivers of acceptable competency, or that the federally mandated paperwork such as MVRs and past employment checks are incomplete, an additional suit for negligent hiring may result. In most cases, this additional demand is defended and covered by your insurance. In some cases, however these shortcomings result in punitive damages being demanded and awarded. In all but a very few states, insurance companies are prohibited from paying these punitive damages. This means that even if the settlement is within the limits of the trucking company’s insurance coverage, the insurance company cannot pay. The trucking company who hired the driver, or leased the owner operator pays punitive damages. Hiring or leasing drivers that are unqualified due to age, experience, tickets or accidents can jeopardize the future of the trucking company.

Hiring Costs

Quite often, companies yield to economic pressures and hire poorly qualified drivers just to fill seats and to get the truck moving. Even as they process the driver, they know that this new hire is nothing more than a stopgap measure and will probably have to be replaced within a month or two. The desperate hope is that the new hire will work out until a better driver is found as replacement. It is also hope that in the meantime, this new driver won’t do too much damage. On the surface, this seems to make sense. What the company has not figured in is the cost of hiring. Recent surveys have placed the cost of hiring a new driver at between $800 -$2,000. This cost includes advertising, phone calls, physicals, drug tests and the hours required to process, road test and provide orientation to the new hire. Not included in that cost figure is lost revenue from downtime as the truck sits in the yard and the reduced productivity of the driver while learning a new system. If these additional costs are included, the overall cost of finding and hiring a new driver increases dramatically. Therefore, hiring a driver that is not going to work out is luxury that few companies can afford.

Accidents

Regardless of past accident records or experience, a driver in his first six months of employment is one of the most accident-prone drivers that a company can have. During this time the driver is learning new routes, new customers, new paperwork and new procedures. His attention is often on these issues rather than driving. When this occurs, the driver becomes inattentive and is subject to having an accident. A company with a high driver turnover rate is usually a company with a high accident rate as well.

Maintenance

Thirty percent of all maintenance costs can be traced back to equipment abuse. Much of this abuse can be attributed to new drivers who are unfamiliar with the equipment or who are inexperienced and do not have good driving habits. Hiring poorly qualified drivers will have a direct adverse effect on company maintenance budgets and fuel costs.

Summary

In an economic environment where most companies are operating on a 2-3 percent net operating ratio, proper driver selection and retention can make the difference between a profitable company and one that has to file bankruptcy. It is critical for a company to have effective hiring practices, hiring the “best of the worst” results in increased costs, which will prevent a company from being competitive in today’s market place. The methods and procedures in this publication are designed to provide assistance in the areas of recruiting, screening, hiring and retention.

Qualifications to look for:

Age
National Transportation Safety Administration studies show that commercial truck drivers between the ages of 21 and 23 have the highest incidence of fatal accidents of any age group. Although the Department of Transportation (DOT) only requires a minimum age of 21, it is recommended that companies look for drivers who are at least 24 years old. There is no upper age limit set by DOT but as driver’s age, their reflexes, vision and stamina all decline. Older drivers can be excellent, but should be carefully evaluated by the company physician for medical qualification. It is also recommended that drivers over the age of 65 be required by the trucking company to undergo an annual physical rather than the bi-annual requirement set by DOT.

Experience
DOT does not set a minimum experience requirement. They simply state that the driver must be qualified by reason of experience or training. We advise that a driver should have at least three years of verifiable, comparable driving experience or training. Driver trainees may be considered if they are at least 23 years old, have graduated from a Professional Truck Drivers Institute approved driver training school and have a good driving record. The company they work for should have a comprehensive training school and have a good driving record. Please keep in mind that using driver trainees may open the company up to possible negligent hiring/negligent entrustment suits if the driver is involved in a serious accident.

Driving Record
The University of Washington conducted a study that showed that drivers with five or more traffic tickets were almost three times more likely to have a fatal accident than a driver with a clear MVR. A driver with multiple tickets is extremely difficult to defend in litigation arising from an accident. A maximum of four moving violations in the most recent three-year period is acceptable. Any misdemeanor or felony citations such as DWI/DUI, reckless driving, drag racing, leaving the scene of an accident, etc., should be considered disqualifying offenses.

Accidents
The average driver has one accident every five years. If a driver has had two at fault accidents in the most recent three year-period, there is an excellent chance that the driver will have more. It is recommended that a maximum of one at-fault accident be accepted. This same criterion should apply to retaining current drivers. Additionally, the nature of the accident should be considered. Running off the road, jackknife and rear-end collisions may indicate improper following distances or poor attitude and should be thoroughly checked. There is an industry wide practice of dismissing minor accidents and faulting major ones. Typically, the only difference between the two is luck. Almost every minor accident could have been major if one or more of the factors had changed. Instead of looking at severity, look at causation, and seek to identify potential attitude problems or poor driving practices.

Education
Although there are many excellent drivers who do not have a high school diploma, education should be a qualifying factor. A driver should exhibit sufficient literacy to properly complete logs, paperwork, trip reports, etc. An illiterate driver may be excellent behind the wheel, but be unable to do the rest of the job. A general policy requiring a high school diploma should be set if a driver can demonstrate adequate competency, this requirement can be waived.

Finances
This area is especially important when leasing owner operators, but also has value when qualifying applicants for company equipment. An owner-operator should be current in truck payments and should have a current bobtail deadhead policy in force. Company drivers should be able to operate for at least one week without drawing cash in advance. Although there may be extenuating circumstances, poor finances generally show a poor sense of responsibility and may indicate potential problems with the driver.

Appearance
It many cases, the driver is the only company representative that a customer ever sees. The attitude of a customer can be directly affected by the appearance of the driver. Look for drivers who present a good appearance. Clothing should be clean and neat without any offensive symbols or messages on them. Beards and mustaches should be trimmed and maintained. Remember, the way drivers care for themselves is the way they are going to care for your customers and your equipment.

Attitude
An aggressive or unprofessional attitude will cause accidents, lose accounts and cause problems for the company. Screen drivers for a good attitude that reflects professionalism and respect for others.

Finding Qualified Candidates
Every trucking company in business today is in competition for good drivers and there are not enough to go around. It is essential for companies to learn how to go around. It is essential for companies to learn how to find and recruit qualified drivers. There are several methods of recruiting. Each has special requirements in order to be successful. The following discussion will attempt to identify these methods and how to best use them.

Word of Mouth
One of the most effective methods of recruiting is word of mouth. Drivers tend to have more faith in the opinions of other drivers than in the promises of a company. If a company has a core work force of good, well-qualified drivers, these drivers can be used to recruit other drivers. Cash bonuses for recruiting work well as incentives for these drivers. Such bonuses should be contingent on the recruited driver staying with the company for at least six months. Potential recruits can be encouraged to talk with the company’s drivers using signs on the trailer that encourages inquiries. Keep in mind; however, if a company has poor drivers, they will attract drives of the same quality. Additionally, a dissatisfied driver can create a poor image of the company and cause potential drivers to avoid it. If using this method, use long-term driver s who have exhibited loyalty to the company and who represent the quality of driver is sought.

Newspaper Advertising
This is perhaps the most common method of searching for drivers. It is also the most poorly used. In any major newspaper, there are dozens of ads competing the available drivers. These ads vary from small one or two liners to large quarter-page spreads. The size and sophistication of the ad depends on what the company can afford and how knowledgeable it is in the field of recruitment. Most small companies tend to submit small inexpensive ads. When they get minimal or no response, they complain that there are no drivers available. What the fail to see is that the good drivers were there but were attracted to the more promising ads that were placed b y companies that were willing to spend more on advertising. Because these ads attracted the drivers, these companies had the first opportunity to screen them. If the drivers do not meet their needs, they are passed over and go to the next ad that attracted their attention and the process is repeated. Eventually, if no one else wants these applicants, they finally call the small two-line ad. By this time, drivers have been screened by at least five or six other companies and were found lacking. In effect, the company that placed the small ad is getting everyone else’s rejected applicants and the money they spent placing their small ad is wasted. More importantly, their truck is still sitting idle of has a poor quality driver behind the wheel.
When designing a newspaper ad, make the ad, make the ad attractive. Define what the company’s advantages are and incorporate them into the ad. The newspaper can usually assist in creating an ad which will catch the eye, and still be within your budget. Always include the company name in the ad. A company that is ashamed to identify itself will not attract many good applicants. The Following is a sample ad which uses bullet points to attract a reader’s attention. Not all companies will have all the advantages listed in this ad, but it serves as an example and will help to identify the issues that appeal to drivers.

Sample:
Drivers: if you are looking for a company that truly cares about you, give us a call. Due to extension, we are looking for a few good drivers who want to work the best. If you are at least 24 years old, have three years OTR experience and a good driving record, we offer

• LATE MODEL EQUIPMENT
• HOME WEEKLY
• EXCELLENT PAY
• PAID VACATION
• 401K PLAN
• HEALTH INSURANCE
• 1ST-IN 1ST-OUT DISPATCH
• LIBERAL ADVANCE PROGRAM
• WEEKLY SETTLEMENTS
• ASSIGNED EQUIPMENT
• SAFETY BONUSES
• UNIFORMS
• ALL PALLETIZED, NO TOUCH FREIGHT
• NO EAST COAST
• FUEL BONUS

If you are interested, please call XYZ Transportation at 1.800.111.0000 or stop by our offices at 000 Main Street, Your Town, and Your State.

A company that uses this type of advertising will attract many more qualified drivers than the one that is satisfied with the one or two line ad. The extra money spent should be well worth it in terms of the type of driver everyone wants.

Magazine Advertising
If a company is operating on a nationwide basis and does not need drivers who live close to a terminal, magazine advertising can be effective if used properly. As in newspaper advertising, the goal is to create an appealing ad that attracts the drivers and allows the advertiser the opportunity to have first choice of the available work force. In order to do this, the same principles apply as did in newspaper ads. Generally, the advertising department of the magazine will be happy to assist in developing an effective ad. Remember that magazine advertising solicits the company’s opening nationwide. If the country, using regional sources such as newspapers can make advertising budgets more effective.

Radio Advertising
Most of the same principles that apply to magazine ads also apply to radio ads. For the most part, radio programs that cater to truckers can be heard in a multiple state area. If a company does not have driver domicile requirements, radio ads can be effective. However, if the company is looking for drivers that live n the area, this type of advertising is not effective. For every local call that is received, there may be dozens of calls from phone lines and personnel. If local low wattage stations are used, the best time to advertise is on the weekend, when the drivers are at home. As with the printed media, radio-advertising departments will be happy to help design effective advertising.

Back of Trucks/ Billboards
These methods are combined for the purpose of the discussion here because of their similarity. As in radio and magazine advertising, these ads are indiscriminate and reach drivers from all parts of the country. If a company uses this method, they should be prepared to talk to drivers from every part of the nation. Additionally prospective drivers will discuss the company with existing drivers. Before using these methods, make sure that current drivers are going to properly represent the company when approached by potential recruits.

Brochures and Flyers
Depending on how these items are used, they can be effective in finding local drivers from all parts of the country. Brochures posted at a trick stop will result in national interest. The same brochure posted at local restaurants, bulletin boards and other local facilities will generate more local interest. When an applicant fills out an application, a take –home brochure describing the company can generate the spark that causes him or her to choose that company over another. Regardless of how the brochures or flyers are used, they should be done in a professional manner that reflects favorably on the quality of the company. Most local printing firms will assist in design and layout of these items.

Summary
Before selecting the best advertising system for a company, the needs of the company should be evaluated. More than one system can be used at any given time. The system or systems chosen must meet the company’s requirements. Costs, location, number of openings and driver domicile needs must all be taken into consideration before a final selection is made. Once the choice has been made, use the resources available to ensure that the advertising looks or sounds professional. If using more than one type of advertising, keep a record of which methods are most effective and concentrate advertising dollars there in the future.

Source: Sentry Insurance