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NRMCA 2007 Developing Industry Leaders Driver Recruitment and Retention La Jolla, CA March 18 – 21, 2007.

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Presentation on theme: "NRMCA 2007 Developing Industry Leaders Driver Recruitment and Retention La Jolla, CA March 18 – 21, 2007."— Presentation transcript:

1 NRMCA 2007 Developing Industry Leaders Driver Recruitment and Retention La Jolla, CA March 18 – 21, 2007

2 WWW. NRMCA.ORG Developing Industry Leaders Group Members Darryl Keiser, New Holland Concrete Brad McMahon, Transit Mix Concrete David Semones, Lafarge North America Matt Smith, Smiths Ready Mix Leif Yderstad, Lafarge North America Tom Zais, Texas Industries (TXI)

3 WWW. NRMCA.ORG 2006 DIL Driver Recruitment and Retention Summary Driver Recruitment and Retention Survey Distributed Through NRMCA Results of Survey - Factors Impacting Recruitment & Retention: Labor Pool Hours of Operation Compensation & Benefits

4 WWW. NRMCA.ORG 2006 DIL Driver Recruitment and Retention Summary (cont.) DRR Task Groups Objective – Develop strategies to solve Driver Recruitment and Retention Issues Recruitment Strategies 1. Improve Image of Industry through Communication 2. Customizable Material to Promote Industry 3. Conduct Labor Pool Market Research

5 WWW. NRMCA.ORG 2006 DIL Driver Recruitment and Retention Summary (cont.) DRR Task Groups Retention Strategies 1. Comparative Compensation Statistics 2. Develop Front Line Supervisor Training 3. Promote Industry Image

6 WWW. NRMCA.ORG 2007 DIL Group Objective Conduct Market Research to Identify Comparative Compensation Statistics Identify Benefits Most Important to Drivers Understand Why Drivers Leave the Industry Provide Best Practice Recommendation

7 WWW. NRMCA.ORG Wage and Benefit Survey Summary 2006 Comparison Class B DriversSoutheast Short Haul S. Central Short Haul National Truck Drivers Long Haul US Labor Dept Concrete NRMCA Natl Averages Hourly Rate Avg$15.00$16.82$17.50$16.34$16.19 Salary Avg$35,000$37,600$40,000$33,980$35,847 Hourly Entry Rate$12.50$12.65$15.25$14.40 Top Hourly Rate$18.00$22.50$24.37$21.58 Incentive PayAttend/Safety Bonus Load BonusMileage BonusMileage/Load/S afety/Attend Vacation1-2 weeks1-3 weeks1-5 weeks Health BenefitsYes Retirement PlanYes

8 WWW. NRMCA.ORG 2006 NRMCA National Mixer Driver Championship – Driver Survey 27 Drivers Participated in Job Satisfaction Survey Championship Driver Demographics Average years with company was 11. 2 years Average years driving mixer 13.1 years Driver championship competitors represented 16 states. The biggest US concrete producer states, CA, FL, and TX (~ 25% US annual capacity), represented 31% of the driver championship participants. The sample pool of drivers is not a valid data set for comparison against mixer drivers in the industry-at- large.

9 WWW. NRMCA.ORG 2006 NRMCA National Mixer Driver Championship – Driver Survey Goal of Survey: Ascertain Positive and Negative Aspects of Job Top 5 Job Satisfaction Factors ranked in order: 1. Relationships with co-workers 2. Condition of equipment 3. Company Reputation 4. Company emphasis on Safety 5. Company valuing diversity

10 WWW. NRMCA.ORG 2006 NRMCA National Mixer Driver Championship – Driver Survey Top 5 Least Satisfying Job Factors ranked in order: 1. Management lack of involving drivers in company improvement 2. Disciplinary Actions by Supervisors 3. Supervisor hiring – interviewing – driver selection process 4. Management lack of recognition for a job well done 5. Management not encouraging drivers to share ideas or feed back.

11 WWW. NRMCA.ORG 2006 NRMCA National Mixer Driver Championship – Driver Survey Top 5 Reasons Drivers Quit Their Job 1. Work Hours 2. Pay / Compensation 3. Supervision / Management 4. Job Duties 5. Lack of Respect or Recognition

12 WWW. NRMCA.ORG 2006 NRMCA National Mixer Driver Championship – Driver Survey Condition of Equipment Highlight Driver personal connection to their truck and sense of personal ownership Management policies that respect the sense of personal ownership Drivers should be dispatched by name not truck number

13 WWW. NRMCA.ORG Best Management Practices Wages and Benefits The Ready-Mix Industry appears to be relatively competitive with respect to wages and benefits across all trucking industry segments. Areas of key importance: Financial Security and Retirement Programs Consider 401(k), IRA, or a Profit Share vesting Performance Rewards Consider performance pay programs to equitably reward top performers and tenured employees Hours of Service Clearly identify expectations of position in hiring process and continually reinforce the importance of scheduling flexibility in communication program Consistency Exercise consistent wage treatment between locations of all employees

14 WWW. NRMCA.ORG Frontline Management Training The Changing role of a Supervisor Transitioning from Employee to Supervisor Skills needed to be an effective Supervisor Developing others – Building a team Progressive Discipline Recognition of a Job Well Done NRMCA will Launch a Front Line Supervision Workshop this Fall

15 WWW. NRMCA.ORG Best Management Practices Consistent Personnel Management Weaknesses Areas for improvement: Establish consistent communication pipeline with drivers Emphasize front-line management and daily contact with supervisors Publicly recognize and reinforce positive behaviors Continually educate front-line personnel on executive vision and strategic initiatives

16 WWW. NRMCA.ORG Best Management Practices Communication Enhancement Monthly Employee Newsletter Establishes a consistent communication pipeline with drivers Presents opportunity to publicly recognize and reinforce positive behaviors and organizational successes Should include photos of personnel, events and activities that represent the spirit of the organization Should include personal executive updates on goals, initiatives and strategic vision for the organization

17 WWW. NRMCA.ORG Best Management Practices Feedback Establishment Execute an annual employee survey (sample survey in appendix) Should be anonymous Investigate employee perceptions on organizational and management strengths and weaknesses opposed to an evaluation of employee satisfaction A survey specialist should be engaged to assure collection of valuable information 2 NRMCA Committees (Operational, Environmental, and Safety as well as Educational Activities Committees) have recommended for the NRMCA to conduct a national mixer driver survey

18 WWW. NRMCA.ORG Best Management Practices Feedback Establishment Implement employee suggestion/comment mechanism Provide suggestion boxes and comment cards at each plant or truck base location Consistently respond to suggestions through newsletter or posted memorandums at each plant or truck base location Management should acknowledge all suggestions and respond appropriately by taking action or explaining a lack of action Publicly post organizational initiatives and progress reports Should include overall organizational performance Declaration of organizational goals and monthly progress

19 WWW. NRMCA.ORG Best Management Practices Advancement and Training Opportunities Concrete Delivery Professional Program NRMCA Program to enhance prestige and professional recognition Driver Trainers/Mentor Drivers Provide supervisory experience and establish personal connection with other drivers. Facilitates sharing of best practices. Concrete Technologist Certification Enhances QC and offers new career paths to drivers

20 WWW. NRMCA.ORG Summary The wages and benefits offered by most R/M companies are relatively competitive with other trucking organizations. Most trucking companies fail, however, in fundamental personnel management practices. Driver Retention can most significantly benefit from the implementation of sound personnel management practices and the establishment of clear lines of communication with each employee. Several BMPs have been identified through the course of our research and continued identification of programs should be encouraged to differentiate the R/M industry from other trucking segments.


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