Understanding Driver Turnover - All Exits Are Not Equal

I hear a lot of people talking about driver turnover and how much it impacts their business. Driver turnover is certainly a challenge, but I don't think it's a black and white issue. I don't think that all driver turnover is bad - in fact, I think some driver is a GOOD thing.

If you take all your drivers and plot them on a graph that maps their quality, you'll end up with something resembling a bell curve:

• A big bunch of pretty-good ones in the middle
• A smaller group at the top
• A matching small group at the bottom.

The drivers in that top group are the stars - the 20% of your fleet that makes you 80% of your profits. The big bunch in the middle probably break even for the most part, but the group at the bottom cause you problems. They're the 20% that account for 80% of your headaches, disruption, and unplanned costs.

Good exits
If we consider turnover in the context of that graph, we get a different picture. Drivers in the bottom 20% don't really cause a problem when they quit. In fact, they're probably doing you a favour, since the odds are good that their replacement will be better quality than they are.

Bad exits
Drivers in the top 20% cause HUGE problems when they quit. If a top-20% driver quits, you lose a great source of profit and have a monumental challenge trying to find someone of equal quality as a replacement.

Finding balance
I think we need to consider driver turnover in that context, and plan retention activities accordingly. Do everything in your power to keep those top-20% drivers happy. Do what you can for the big bunch in the middle. For the ones in the middle, either move them up or move them out.

The first step for each of those is developing a clear picture of who's who. We'll look at that next time, but for now think about how much it would HELP you if all your bottom-20% quit.