According to a recent report from Stay Metrics, while driver turnover rates spiked early in the first quarter of 2020, they soon began trending down and dropped to all-time lows in March.
The new report tracks turnover rates on a weekly basis to show how drivers responded to changing market conditions that directly impacted their pay. It shows a major shift in the turnover paradigm for the first quarter, with turnover spiking for all truckload sectors before the coronavirus pandemic, but not necessarily due to a positive economic environment. Some freight sectors experienced disruptions before the COVID-19 pandemic that could explain the turnover spike.
“Fleet executives and managers cannot fall asleep at the wheel,” said Tim Hindes, Stay Metrics Co-Founder and CEO. “Now is the time to double down on retention efforts. Let drivers know they belong to a stable organization that is essential to the economy and also use this period to rebuild driver-focused cultures.”
Key findings in the report include:
Tanker
This sector had comparatively higher turnover than other sectors. Rates spiked in the second week of January to 107.1% before the trendlines split for oil and gas haulers and food-grade haulers.
In the third week of January, oil and gas haulers saw a sudden dip from 106.1% to 62.9%. The decline could be explained by the decrease in oil production in the U.S.
Drivers in this sector may have transitioned to food-grade tankers and other industry sectors. In February, the turnover rate for oil and gas haulers jumped from 78% to 119.1% and stayed elevated during the middle three weeks of March (118%, 106.6% and 112.8%) before returning to 68.6% the last week.
By contrast, the turnover rate of food-grade tank haulers increased slightly in early February to 93.6% and fell steadily through March to reach a low of 47.8% before a slight spike at the end of March to 68.6%.
Flatbed
Flatbed also had comparatively high turnover. This sector saw a substantial spike in the third week of January from 94.6% to 124.3%, followed by a noticeable dip in the fourth week of February from 91.0% to 62.9%. Rates increased in the second week of March from 70.2% to 98.3% and fell through the end of March to reach 57.2%.
Reefer
Dry van