Budgeting isn’t an exciting topic — but it’s so important for your truck driver recruiting efforts. If you plan out your yearly expenses ahead of time, you’ll set yourself up to focus on what matters most.
You’ll also avoid overspending in the wrong areas, having to start at ground zero with your hiring and recruiting plans.
And if you’re not sure where to start with planning an effective truck driver recruitment budget, no worries — we’ve got you covered. Here’s what you need to consider for smart planning this year.
Talk to Your Drivers
To get the most out of your recruiting budget, you need to maximize driver retention.
According to the American Trucking Association (ATA), the average turnover rate in 2020 was 90% for large carriers and 69% for smaller fleets. Convincing drivers to stick around is one of the biggest — and most costly — challenges for carriers.
So, it pays to build relationships with drivers. Reach out and ask what attracted them to the job and why they’ve said or left. The answers can help you know which recruitment efforts deserve more of your yearly budget.
Determine Your Recruiting Costs
Figure out what you expect to spend on recruiting costs like:
- Hiring recruiters
- Job board postings
- Brand awareness
- Recruiting events
- Technology for video interviews and tracking systems
- Background checks
Don’t forget anything new you’re adding to improve driver retention, such as pre-employment testing and employee referral programs.
Do you have any other miscellaneous hiring costs to consider? If so, ask if they are necessary. If they are, budget them in.
Re-evaluate Your Recruitment Methods
Now is an excellent time to step back and look at your recruiting efforts. Are your current methods attracting the ideal candidates for your fleet? Or are they focused on quantity over quality?
Waste less time and money by focusing on a high-quality recruitment process with meaningful connections, targeted ads, and consistent direct leads. That way, you can know each dollar is going towards smarter leads and the best candidates.
At AMG Driver Recruitment, we help small, medium, and large carriers hire the people they need in the most efficient ways. Learn more about our process here.
Estimate Your Total Number of Hires
Next, you’ll need to estimate your total number of hires for the year. Talk to your hiring managers about previous years’ recruitment budgets, expected turnover rates, and the best methods for calculating number of hires.
Know Your Different Costs Per Hire
The cost per hire (CPH) won’t be the same for each driver. For example, rehires and referrals will typically cost less. Companies with various divisions will also see cost differences per driver based on haul types, routes, and more.
Break down each CPH, including rehires and turnover costs.
You can calculate CPH with this formula:
CPH = Recruiting costs / Total number of hires
Remember that recruiting costs include internal costs (like referral programs and paying recruiters) and external costs (like agency fees and job board costs).
Prioritize Steps That Retain Drivers
We really can’t say it enough: Focus on what you can do to retain your drivers. You’ll save time and money while keeping things moving smoothly by holding onto drivers. Your recruitment budget should be generous in areas that prioritize retention.
Plan (Realistically) for Turnover
Finally, don’t underestimate the cost of turnover. You can’t ignore driver churn, and if you do, it will come back to bite you. Know how many drivers you’ll need to hire to make up for turnover.