Dangerously High Turnover Rates in the Trucking Industry
With millions of trucks on the road every day across the US, the extremely high turnover rate among trucking companies has drastically increased the danger of an already hazardous job.
The turnover rate among many trucking companies is as high as 90% or nearly 100%. This means that each year, almost all of the truckers in a company will quit and have to be replaced.
Why is the turnover rate so high? As we discussed in August, truck drivers often face exhausting hours, low pay and inadequate benefits. These high stress factors rapidly increase the rates at which employees burn out and turn to other trucking companies or seek work in other industries. Truckers in such situations are more likely switch jobs more frequently.
If truckers never stay with one company for long, they are unable to gather retirement or other benefits inherent with staying with one employer over a long period of time. This also leads to trucking companies, scrambling to hire more, new employees to replace those who have left, instead of investing in their employees’ health and well-being. This cycle leaves truckers bouncing from job to job and leaves trucking companies chronically understaffed. This high demand for less experienced truck drivers, with little time to properly train, increases the dangers associated with the job. If you or a loved one have been involved in a truck accident, it is important to speak with an experienced truck accident lawyer immediately.
Bob Costello, Chief Economist with the American Trucking Association, has noted that “the driver shortage – which we now estimate to be between 35,000 to 40,000 drivers – is getting more pervasive in the truckload sector.” A staff shortage that extreme can have real and lasting effects on the industry. The more time, energy and money that goes into recruiting and training new truckers in an effort to close that gap means there aren’t enough resources for the employees who already work within those trucking companies.
There is a Better Way
There is an alternative business model that some trucking companies, as well as companies in other industries, have adopted. This is known as Employee Stock Ownership Plans, or ESOP for short. With this model, employees are given stock in the company they work for. Truckers are no longer seen as strictly employees, but also shareholders. This adds incentive for employees to remain with their employer by giving them a sense of ownership within the company. This added benefit has shown to decrease the high turnover rate among the trucking industry, and in other industries.
If trucking companies paid their employees a fair wage, provided workable hours, retirement plans and overall decent working conditions, there would be more incentive for truckers to remain within a company. In order to maintain long-term employees, trucking companies could provide fair compensation, benefits, and better training. This, in turn, would reduce the turnover rate in the trucking industry.
You should not have to pay for a trucking company’s negligence. If you or a loved one have been injured in a trucking accident, contact Chad Jones law today. Our attorneys are standing by to meet you for a free consultation.