Speaking at the Recruitment and Retention Conference in Nashville, Tenn., recently Gary Salisbury, senior vice president and COO of Fikes Truck Line, said his company is retaining more new contractors in the first year of their lease.
And, he said, turnover among its owner-operator fleet is declining.
Retention jumped 13 percent this year to a total of 70 percent of all new leases. Turnover dropped from 80 percent a year ago to 65 percent in 2005.
These improvements have been achieved for a second consecutive year in conjunction with programs targeted at increasing profitability among contractors. “Traditional wisdom suggests that contractors are individual business people who are responsible for their own profits,” says Salisbury, “but as we studied the numbers we track, we realized that when our contractors are more profitable, we are more profitable. Fikes began investing in business programs to educate its contractors about how to lower their costs and make smarter business decisions. Front-end initiatives to increase profitability include tracking more data about loads, distances, deadhead and individual contractors that help load and fleet coordinators load-for-profit. Fikes is also covering tuition costs for contractors and operations staff to attend the two-day Certified Master Contractor (CMCTM) business program sponsored by The Alliance of Independent Trucking Professionals. The course provides tactical advice on how to lower costs and create long-term financial stability.
Fikes Truck Line is a leading flatbed specialist with headquarters in Hope, Ark., and terminals in Texas, Colorado and Kentucky. The truck line delivers building materials, steel, machinery and manufactured goods all over the United States. For more information, call Fikes at (800) 643-6611 or log onto www.fikes.com.