Introduction

In the midst of the current freight recession, trucking companies are experiencing a rare ease in recruiting qualified drivers. With an abundance of applicants available, it might seem tempting to believe that the driver shortage is a problem of the past. However, this temporary relief shouldn't lead to complacency.

The Persistent Challenge of Driver Shortage

The driver shortage has been a major issue in the trucking industry for the past decade. Every year, the American Transportation Research Institute (ATRI) publishes a report highlighting the top concerns in the industry, and the driver shortage has consistently ranked high on this list. Below is a look at how the "Driver Shortage" has ranked in the issue list over the last 15 years. A few observations are worth making.

1. From a trend perspective, the issue has been rising and becoming top of mind for carriers over the last 15 years. From consistently ranking outside the top 3 before 2014, to being top 1 for 5 years in a row.

2. This is not a COVID phenomenon. Though COVID accentuated it, this phenomenon is caused by multiple reasons, including demographic trends that will only accentuate: aging workforce, increasing regulations, and rising demand for freight.

   
   

Despite this trend, many carriers appear to be acting as if this is the new normal. When approaching carriers to discuss opportunities to streamline their driver recruiting and retention processes, we often hear that this is not an issue and that "all trucks are full."

Why Act Now?

The current environment provides a unique opportunity to streamline your recruiting processes and prepare for the inevitable return of a competitive market. Here’s why you should act now:

1. Temporary Relief has its Days Counted: The current surplus of drivers is a temporary phenomenon. As the freight market recovers and supply and demand re-balance, the driver shortage will become a critical issue once again. Analyst consensus is for the market to turn the corner in the coming 2-3 quarters and initial data points are confirming this forecast.

2. Accelerated Innovation Pace: The pace of innovation has continued to accelerate over the last few years, meaning today there are many more technologies and tools available to streamline recruiting and retention than before. For example, the boom of Gen AI and its many use cases have open a world of possibilities for driver engagement & qualification. Use this "market downturn" to put time and effort into evaluating your current processes and assessing how new technologies and use cases could help you streamline these.

3. Lower Risk of Changing: Making changes is always hard. However, making changes when there is no room for mistakes adds significant stress to the organization and might defeat the change effort. Now is the time to introduce changes, giving your teams enough time to get on board with those changes, adjusting and fine-tuning them ahead of the turn.

Where Should Carriers Start?

1. Assess Your Driver Value Proposition: This encompasses everything from hiring areas and marketing to pay and equipment. In a tight market, having a clear value proposition for drivers can be the difference between working through hundreds of leads to get one hire and filling up your seats with referrals from current and past drivers.

2. Streamline Your Recruitment Process: Ensure that you have a consistent and efficient process for getting drivers on board. Evaluate your current recruitment process and identify areas for improvement: where are you losing the most leads? What steps are taking the longest? Identify these bottlenecks and leakage points and utilize technology to address them. Look for opportunities to automate repetitive tasks so you can better focus your team's time. A streamlined process not only saves time but also improves the candidate experience, making your company more attractive to top talent.

3. Leverage Technology for Compliance and Documentation: Compliance is critical in the trucking industry, and addressing all requirements ahead of hiring in an efficient way is key to not losing leads and minimizing risk. Look for solutions that allow you to meet all regulatory requirements while minimizing delays and legwork for your team. This ensures that you meet all regulatory requirements without added manual effort, reducing the risk of non-compliance and freeing up your team to focus on building relationships with drivers.

Conclusion

The current freight recession is a temporary reprieve in the ongoing challenge of driver recruitment. By taking action now, you can position your company for success when the market rebounds. Don’t wait until the driver shortage becomes a critical issue again – prepare for the future by streamlining your recruiting processes today.

If you’re ready to future-proof your operations and take advantage of the current environment, contact us at Double Nickel. Let’s work together to ensure your company is ready for whatever the future holds.