A recent survey of the readers of Overdrive and its sister brand Truckers News asked truck drivers, “What is the one thing you dislike most about your job today?” The top gripe by a considerable margin was that, “regulations are making it harder to work and make a living.”
Lack of respect came in next at 20 percent. And while most companies assume pay is the top reason why drivers switch jobs, ‘not enough money’ appeared farther down on the list at just 13 percent.
3 Strategies for Increasing Driver Retention Rates
Ever-changing regulations have made it increasingly difficult for contract carriers to stay compliant, find work, and earn a living, but there are a few strategies that trucking organizations can leverage to help keep drivers contracted and minimize turnover caused by dissatisfaction.
- Automated Onboarding Process
Compliance is, and will continue to be, the primary focus for any trucking company that chooses to work with independent contractors or independent service providers. The risks associated with noncompliance are rising, and trucking organizations must ensure that all contract carriers remain compliant with state and federally mandated regulations. To minimize risk, companies are leveraging automated compliance tools that help initiate and establish proper business agreements with contract carriers the right way. A clear communication path through the back-and-forth negotiation process and transparent agreement signed off by both parties, work to protect both trucking companies and independent service providers against any potential issues that may arise. With the ability to track date-sensitive, contractual and compliance-related items, and alert both parties when an update or change is required, trucking organizations can rest assured knowing that their independent service providers are onboarded faster and in support of compliance. What’s more, independent service providers feel greater respect through this processes—are ultimately more satisfied being treated as an empowered independent business—which results in lower turnover.
- Streamlined Settlement Processes
Self-employed contractors manage and operate as an independent business. So the accurate and on-time delivery of settlement is extremely important to their livelihood and the livelihood of their subcontractors. Using contractor management software, like IC Pay, trucking companies can provide independent service providers with the ability to provide comments, make adjustments, and submit invoices for electronic approval and payment. In addition, it allows trucking companies to deliver electronic payments to their independent service providers via direct deposit or debit card. Not only does this help create a seamless and expedited settlement process, but it also removes administrative burdens for both the trucking companies and their contract carriers. Automating time-intensive settlement process allows companies to pursue revenue-generating activities while helping independent service providers get paid in a more timely and accurate manner.
- Document Push & Management
Simply put, working with independent service providers means paperwork—and lots of it. While much of this paperwork can be attributed to the onboarding process, it’s very common for compliance and contractual documents to be updated throughout the course of an engagement. In the past, both independent service providers and trucking companies were forced to manage and maintain these documents manually. However, with contractor management software like IC Onboard, trucking organizations can now send on-demand documents and alerts which are tracked for execution and compliance. Once a document is pushed, the independent service provider receives at alert via email, text or splash screen within the software, informing them there is a document to review and electronically sign. The amount of documentation required to complete, consolidate and update on a regular basis is no small feat. This streamlined process allows both the trucking company and independent service provider to update and respond to new information quickly and efficiently, minimizing the hassle and productivity loss when changes are necessary.
Working with independent service providers can deliver operational effectiveness and cost savings that significantly outweigh the management challenges. However, trucking companies must seek to manage turnover through proactive practices aimed at reducing the burdens placed on the independent service provider. Companies, like Openforce, are well-versed on the challenges and industry-leading technologies for reducing independent contractor turnover. In fact, Openforce customers experience a 30 percent decrease in contractor turnover when compared with the industry average in transportation. And without fail, each customer Openforce onboards confirms some combination of reducing costs, managing risks and eliminating non-strategic tasks—which allows them to shift the focus to their core business, on-time delivery and servicing clients.
Openforce® is the leader in technology-driven services that reduce operating costs and mitigate risk for companies using independent contractors. Our cloud-based applications help companies and contractors alike achieve more sustainable, profitable growth by removing financial, operational, and compliance barriers to getting business done.