Recruiting truck drivers without data is like Dave Roberts setting the Dodgers’ batting line up without looking at the players’ batting averages. But what data is the most important to measure? Here are the 5 key performance indicators driver recruiters must know:
- Time Taken to Contact Applicants
- Average Time to Hire
- Average Cost per Hire
- Percentage of Offers Accepted
- Quality of Applications Being Received by Sources
Time Taken to Contact Applicants
One study conducted by Dr. James Oldroyd found some eye-opening results:
- The odds of contacting a lead are 100 times higher if called in 5 minutes versus 30 minutes.
- The odds of qualifying a lead are 21 times higher if called in 5 minutes versus 30 minutes.
Simply put, the faster you contact drivers after they apply, the more truck drivers you will hire.
Measuring the average time it takes for you to contact driver applications will tell you a lot about why or why not you are having success.
The goal should be for you to get your average time to contact 5 minutes or below.
If you are above 5 minutes to contact an application then there is room for improvement.
One of the easiest ways to boost your contact time is by working with a recruiting agency that sends the applications directly into your ATS. Do not let an agency convince you that sending leads once a day, once a week, etc. is okay.
You need the applications delivered to you in real-time so you can beat out other driver recruiters at contacting that truck driver.
Average Time to Hire
The sooner you can get a truck driver from applicant, to interview, through orientation, and out on the road, the sooner they can start earning money.
Also, keep in mind that while you are trying to officially hire a driver, they are receiving offers from other companies. If your time to hire takes long then the driver has more time to accept someone else’s offer.
On average, trucking companies take 20-24 days to hire a driver. If you are above the industry average then your competition is beating you. Every day your truck sits idle costs your company thousands of dollars.
It is important to keep track of the entire time from application to hire. However, it is just as important to keep track of the time in between each step of the process.
Knowing the time it takes in between each step will tell you where to focus your efforts. The longest step in the process is the first step you should begin speeding up.
Keep track of your time to hire so you can implement strategies that try to speed up your process. A faster process will make your company more money.
Figuring out your average cost per hire is not a complicated process. Simply calculate the sum of money spent on recruiting efforts and divide that number by the sum of drivers hired.
The industry average cost to hire a truck driver is $8,234. Calculating your average cost and comparing it to the industry average is a good measuring stick for your company. Obviously, you should try to have a cost per hire lower than the industry average.
Once you know your average cost per hire you can begin working to lower that number. Implement different recruiting strategies, try different lead sources, etc. and measure which process changes save your company money.
New technologies constantly provide opportunities for your company to optimize hiring processes. Improvements can always be made.
Percentage of Offers Accepted
Convincing truck drivers to apply for your company and convincing them to accept an offer are two different things.
There are agencies you can hire that specialize in getting truck drivers to apply to work for your company. However, you still need to convert those applications into hires.
If a low number of your offers are being accepted by drivers, that is troublesome. It could mean that your offer is not strong enough, the drivers do not like your company culture, your recruiters are underperforming, and many other things.
Losing drivers that you offer the position hurts your company. You are losing out on a driver that you identified as qualified and a good company fit. Those types of drivers are not easy to come by.
Working to increase the percentage of offers accepted is crucial.
Quality of Applications Being Received by Sources
Unless your company only hires 1-2 drivers a month you are more than likely receiving applications from different sources.
It is up to the driver recruiting department to monitor the quality of truck driver applications they receive from different sources. Using an applicant tracking system can help you sort the sources of applications.
If it is clear that one source is sending you poor quality leads stop spending money on that source.
On the other hand, if you notice one source is sending you high-quality applications then you should increase the spending.
There is some variance in the performance of each source. Some months you will see a specific job board send a bunch of quality applications, and the next month you get zero from the board. Measuring the sources over an extended period is necessary to notice trends.
If your company is not keeping track of any key performance indicators then you are below average. These are the 5 key performance indicators driver recruiters must know to optimize their performance.
What other KPIs does your team measure? Comment below!