Companies are facing a hard reality in today’s economy. Maintaining operators in a growing industry is proven to be a difficult task. Large companies with high yields appear to be doing everything possible to recruit and maintain favorable operators. Offering benefits packages that appear to be a fare deal, except not to many operators seem to find it worthwhile. Addressing the unfavorable benefit packages offered to employees could solve driver shortage in the Logistics and Transportation field. Freight companies are being faced with more regulations on the carriers and operators. With new implementation of new laws, a difficult task of recruiting becomes even more difficult. This does not only affect those who haul freight, but also companies …show more content…
Freight companies claim they could expand their companies only if they had drivers according to Dave Rusch, CEO of CRST International. With the shortage of operators growing, by 2024 these companies will lack almost 175,000 drivers. Impacting not only the growth for carriers, but also for companies that rely on them to deliver their goods. (Costello, B., & Suarez, R. 2015). To ensure our economy continues to grow, and not deterred by the lack of operators other hauling methods are being considered but would not solve issues in the short term. Also, these alternative methods could come with negative affects. Freight carriers have a hard task, in recruiting, hiring, and maintaining a growing but shrinking career field. These companies don’t just have to worry about finding operators but keeping them from jumping to another carrier. (Costello, B., & Suarez, R. …show more content…
The same amount of freight is being hauled with half the drivers needed. Drivers realized the shortage of operators adding stress to their daily lives. With being pushed by carriers to haul more freight due to the lack of drivers many operators are leaving the profession entirely due to safety concerns. (Wile, M. 2014). In an occupation where pay isn’t everything, new and old operators find it hard to be home only 5 weeks out of the year (Wile, M. 2014). Being over the road for weeks at a time for ok pay turns off a lot of employees. Drivers are faced with a great deal of stress, being pushed to haul more, and spend more time away from home only adds to the shortage problem. Companies battle the reputation of long hours and low wages and are starting to develop programs to get and keep new staff. “Most fleets instituted large pay increases in the summer of 2014 with many repeating the increases again in 2015(Costello, B., & Suarez, R. 2015). Yet driver shortages are still on the rise and forecasted to grow even
Employees protested, “that supervisors should have received a reduced bonus because they were not working as hard as they are and the company might be playing with the numbers” (Beer & Collins, 2008 p.6). A beneficial system for the new Scanlon Plan is to rearranged payout count. This will help to regain trust amongst employees and management. Equity Theory stresses integrity to all compensation arrangement and if this is effectively executed, then this will resolve the mistrust issue that employees have with their management team. The rewards should not be paid on a consistent month-to-month basis, instead, on a settled proportion plan, which gives rewards "each nth time the right behavior is demonstrated" (Bauer and Erdogan, 2013, p. 112). Traditionally, this would imply that workers are paid reward each time a specific measure of cash in permitted payroll is met. “The current permitted payroll is at 38% of sales value” (Engstrom, 2008). This requires no change. Instead, when Engstrom comes to a permitted payroll of one million dollars, then 10% of that sum should naturally disbursed to workers as rewards. This tackles numerous past issues with the Scanlon
Many employees when looking for a job or deciding whether to stay with their current employment often considers the employee benefits the company offers.
Verizon Wireless may be losing at least one competitive advantage as a result of lack of knowledge about how employee benefits packages in the wireless industry compare. Studies have shown that valuable employees and top talent candidates are highly influenced by employee benefits packages considered to be good (Paterson, 2013). The leadership team’s determination and call for organizational growth, translates to both retaining current employees and enticing new candidates to join, an area in which a top employee benefits package is a major contributor. With this consideration, and factoring in the problem of a lack of updated information, it was determined that there was a critical need for a current benefits package comparison. The investigative steps necessary for this analysis for this Capstone Project were found in Section III, and this subsequent chapter, Section IV, submits those findings.
This made it so that more carriers could work in the states, which made the market fluctuate by decreasing the rate. In 1980 there was a total of 17,100 authorized interstate carriers (Schneider & Johnson, 1992) There is more than 1.5 million drivers on the road delivering our food and clothing across the united states (Local freight trucking industry, 2017).
The current driver shortage didn't happen overnight, but to carriers facing the oncoming crisis that's coming - well, like a speeding truck - it can certainly feel that way. A "perfect storm" of detriments has created a void in the normal flow of potential drivers, from baby boomers eyeing retirement or alternate jobs that keep them closer to homes and families to millennials that consider the demands of truck driving a poor match for their desired lifestyle. In terms of truck-driving demographics, those edge-of-retirement baby boomers are also being pulled off the road by stiffer regulations on medical conditions like sleep apnea, which could affect alertness or even response time out on the road.
Organizations face massive challenges in attracting and retaining a high-quality and productive workforce. Companies are continually looking for new ways to keep their employees satisfied at all levels in order to harness greater productivity and ideas from people while keeping them motivated and happy. One real challenge examined earlier is the need to transform General Motors to be a much more productive and fully utilized organization by examining the hourly workforce. This is a great change from the traditional "us versus them" mentality of the past between management and the union.
Driver retention is an ongoing problem in the trucking industry. Driver turnover rates are always high. The problem with such a high turnover rate is attributed to many factors. Workplace environment, demographics, and driver’s quality of life seems to be the leading factor. There are factors that could lead to better retention among drivers. Most truckers want the family feel among drivers. Benefits is the leading factor to high turnover in the industry. Drivers want and need good benefit packages that include vacation, illness, and pension. When the companies make the driver feel more needed, then you will have a better and more
Instead of Delta Air Lines meeting demands of salaries and benefits by small margins, they should survey the workers needs and come to an agreement. With Delta’s profits consistently rising in the last five years, even new hires are concerned why attendant salaries pay gap is 26 percent behind Southwest Airlines. Delta’s total compensation, including all benefits, is slightly below the industry standard. If demands are not met, Delta will be subject to sickouts and work slowdowns. Those actions are designed to place economic pressure on an airline (GAO-03-652).
That capability alone helped Freightliner to go from producing 116 trucks in 1950 to over 6,200 by 1970. That’s a volume increase of 5,250 percent! For a time, between 1951 and 1974, the White Motor Company sold Freightliner trucks through their
In the past two decades, transportation cost of cargo has decreased that has aided in improving productivity and economic growth. Nonetheless, the operations of the market forces and the rising cost of fuel as well as environmental concerns impact on the cost of transporting goods from one place to another. Subsequently, the high cost of moving goods will be felt throughout the economy affecting enter...
Ward Transport and Logistics Corporation Are you interested in working as a driver? How about working for a shipping and transportation company that has jobs in accounting, sales, warehouse, customer service, driving and more? If you’re in the Northeast or Mid-Atlantic region, check out what Ward Transport has to offer you. About Ward Transport It all started in 1930 with just one truck and two drivers.
If there were no drivers, there would be no profits, and if drivers found other more favourable ways to make income, Uber would be affected drastically. This is an impactful flaw in Uber’s design. Drivers will often be dissatisfied due to no real employer-employee relationship due to only contract employment, lack of communication, and extremely minimal room for drivers to advance in rank or professionally develop.
Hiring an individual is simple, but getting the right individual takes a lot of effort and this makes a big distinction. The finest workforce gets the work done, they are bliss to supervise and assist the organization’s development. Recruitment focusing on merely employing warm bodies could result in headaches and unexpected setbacks. Sudden hire might need hours of management and time used up in control, retraining in addition to terminat...
This has gotten so bad to the point where truck drivers are forced to ignore Australian low to ensure their employment. This show that truck drivers’ well being is being ignored and Australia’s road safety requirements are disregarded. According transport NSW, there were a total of 390 road deaths in 2017 and 53 deaths were related to trucks which make up a staggering 17 percent of all road deaths in NSW (Patty 2015). From these statistics and figures, we can expect number of deaths relating to truck drivers to increase if there aren’t regulated and
...the demands of driving, but the fundamental problem may be the behaviour of the individuals willing to pick up the technology" (Reimer, 2009).