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Tuesday, August 14, 2012

Treating Drivers Right Keeps Nussbaum Turnover Low

This may be a company worth checking out if you live near Normal, Ill. It’s Nussbaum Transportation and you can read this post from the CEO below.

Submitted by Brent Nussbaum, CEO on December 20, 2011 at 09:22
With average driver turnover in the OTR truckload industry well over 100 percent, how does Nussbaum’s turnover rate hover consistently around 35 percent? It’s all about quality over quantity.

At Nussbaum, driver quality is our top priority. While the industry-wide driver shortage is no secret, we understand that retaining the right drivers not only provides security and consistency for our business, but for our customers’ as well.

So what are we doing differently to retain a quality driving force? We start by asking questions. According to our latest driver poll, money is the pivotal factor in the decision to change jobs, but drivers also take into consideration bonuses, home time, equipment, pay per mile, and communication. And we’re listening. In 2011, Nussbaum has enacted many changes, including:

  • An across-the-board pay increase: In early 2011, all Nussbaum drivers were given a per-mile increase to insure that their pay was in line with or above market rates. Additionally, we gave drivers a second increase in benefits, accessorial pay, and minimum load miles.
  • Switch to Practical Miles pay system: Previously, driver pay was based on the industry standard, short miles pay system. But in November 2011, Nussbaum announced that all driver pay would be calculated based on practical miles. This pay system had been sought after by our driving force, and Nussbaum is proud to more closely match our drivers’ paid and driven miles. On average, drivers are paid for 4 percent more miles when their routes are based on practical, rather than short miles.
  • Bonuses based on Scorecard performance: This year was the first time monetary bonuses were attached to our Driver Scorecard program. Originally implemented as a tool for measuring safety, the scorecard was expanded to include fuel mileage, idle time, driver productivity and other key performance indicators. By basing bonuses on a points system, we are able to help our drivers improve their individual performance and reward them for their efforts.
  • Consistently building relationships: Open communication based on honesty, integrity, respect and personal attention is what all drivers can expect when they are a part of the Nussbaum team. In addition, our Driver Manager of the Month program promotes improved driver performance scores through collaboration with their driver managers. The scorecard program allows Nussbaum to provide performance feedback and recognition encouraging our drivers to become top performers every quarter. Additional appreciation is shown through personalized birthday and anniversary cards. Nussbaum also promotes communication between our drivers by featuring both personal and professional stories, shared by our drivers, in a quarterly newsletter. More recently we have encouraged interaction through our company Facebook page that offers drivers a portal to directly communicate with each other and receive timely company updates.

We consistently receive feedback from our drivers expressing how happy they are to work at Nussbaum.

“There are few companies like Nussbaum left out there, trucking or not. They truly care about you!”
      -Jack Mudgett, Nussbaum Driver     

“Everyone at Nussbaum is great to work with! I hope to make it my home till the day I retire.”
      -Kent Pitchford, Nussbaum Driver

We are confident that our efforts to hire and retain quality drivers will continue to reflect in the level of service we provide to our customers and our success in years to come!

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