Driver turnover has been a hot topic across the logistics industry for decades. Only in recent years, however, have industry leaders gained a more comprehensive understanding of why drivers leave carriers. Despite what many people once believed, it is not all about the money.
Tenstreet’s driver survey tool, Insights, has enabled the company to gain a more complete and nuanced understanding of why drivers choose to leave carriers. While pay often dominates the retention conversation, survey results made it clear that money is not the only factor contributing to high industry turnover rates.
“Pay is a frequently discussed topic in the world of retention and is often the reason blamed for a driver’s departure,” Bailey James, Tenstreet senior content and marketing specialist, wrote in a company blog post. “While being paid well is still important in keeping skilled drivers for the long haul, pay dissatisfaction is less likely to be the actual tipping point that sends someone out the door.”
Often, the final straw for drivers is simply feeling unheard, unseen or unappreciated by their carriers. Drivers are willing to stick with carriers through conflicts and tough times, as long as the path forward is clear. Once the relationship between a driver and a carrier breaks down, however, drivers start moving on.
Rewards programs are often used as a way for carriers to express their appreciation for drivers. While this is great in theory, these programs often prove expensive for carriers and cumbersome for drivers.
One of the biggest hurdles carriers face when using traditional rewards programs is a lack of driver engagement. Historically, these rewards platforms have been housed away from other tools, requiring drivers to take extra steps in order to earn (often low-value) recognition.
By integrating its new rewards program into the Driver Pulse app, an app 4 out of 5 drivers already have on their phones, Tenstreet has essentially created a plug-and-play program for drivers and carriers alike.
“More than 330,000 drivers have used Pulse in the last month so it’s a natural place to engage your fleet without additional tools or effort from you,” James wrote in a recent blog post.
With Tenstreet Rewards, drivers can earn points from their carriers or win them from Tenstreet. Once they reach a certain threshold, drivers can then redeem those points for high-value rewards in the form of digital gift cards to popular retailers — with options ranging from Amazon and Walmart to Home Depot and Petco.
Drivers can earn these reward points three different ways:
Applause Rewards
Carriers can issue this type of reward to recognize drivers who go above and beyond in the course of their duties like by providing standout service or helping another driver in a bind. This enables carriers to show appreciation for the day-to-day things their drivers do to help the business thrive. Applause Rewards can also be granted when drivers perform actions within the Tenstreet system like uploading current documentation, completing a training, submitting a survey or any other positive behavior the carrier wants to encourage in its fleet.
Automated Rewards
This is a “set-it-and-forget-it” option that allows carriers to acknowledge special events like birthdays and work anniversaries, communicating that these milestones are valued within the company. Automated Rewards are also a budget-friendly way to recognize drivers since carriers can calculate these overall annual costs well in advance.
Pulse sweepstakes
This feature allows fleets to gamify safe driving and other positive behaviors through sweepstakes. Carriers decide how drivers earn contest entries, then Tenstreet handles the logistics of the actual sweepstakes.
Tenstreet Rewards is designed to make drivers feel seen and appreciated by bringing incentives they can actually use right to the palm of their hands. Not only does this approach boost driver participation, it also streamlines the rewards process — both practically and financially — for carriers.
“Rewards gives carriers flexibility in budgeting however much makes sense for their businesses and also offers easy-to-use reporting that helps you track spend on rewards points over time,” James noted. “This report lets you track money invested in your rewards program (and money that’s still available to disperse to drivers) alongside an itemized list of all the rewards you’ve given and a summary total of all the points each of your drivers has received.”
In today’s economy, carriers are under continuous pressure to cut costs. When decision-makers have a clear view of how much they are spending on their rewards program, they can ensure the cost expended is lower than the estimated amounts saved by improving retention.
Ultimately, Tenstreet Rewards cut to the heart of the driver turnover problem by creating an avenue for drivers to feel seen, heard and appreciated.
Click here to learn more about Tenstreet Rewards.
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