Saturday, July 14, 2012

"90 Days to 75% Retention" and "Negotiating with Freight Brokers"


Thought of the Day - When one of your drivers comes to you stating he is leaving for more money, and you give him a raise in an effort to keep him, how long does he typically stay?  In most cases, he or she may stay for another month or two, or just leaves anyway.  Pay is not the answer to driver retention nor attracting drivers.

 There is a solution...


$75


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Thursday, July 12, 2012

Driver Pay and Retention. What difference does pay make? - Continued from Wednesday. Part 3 of 3

Good Morning and Welcome. 


Thought of the Day - When one of your drivers comes to you stating he is leaving for more money, you give him a raise in an effort to keep him, how long does he typically stay?


Check out our new Publication "90 Days to 75% Retention" A Real Plan for Driver and Owner Operator Retention

"Out in the West Texas town of El Paso..." Continued from Wednesday.  We have a lot to cover on this topic, so posts will continue daily throughout the week...

Jorge and his European superiors are enjoying the fruits of the new employee pay increase, production is running at almost 100%,  customer demand is being met.  Then slowly after a few months one employee after another leaves.  This was not a huge issue at first, as there is still plenty of new employees coming in the front door, as the trained employees exit out the back door.  

The trend continued and within six months they were right back to where they started.  147% annual turnover,
the plant was running at 67% capacity.  To add insult to injury, most of the mequilla's in Juarez had raised pay levels, following Jorge's lead.  Juarez, due to it's isolation and dependence on the mequilla's, tends to operate in a vacuum.  So the once steady of stream of new employee applicants had slowed to a trickle.  What to do, what to do? 

Let's summarize, shall we?  Jorge has increased factory pay levels from an average of $1.05 an hour to $3.75 per hour,
had a short lived success with retention and recruiting, and was now right back to where he started.  High turnover and low production due to shortage of factory workers.  Now his current roster of factory workers were all at the higher pay level.  Sound frustrating and all to familiar?   

Jorge's tale of struggle and redemption, along with a thorough plan for your company can be found in our new publication -


Friday's Post - HR Style and employee motivation from Cortes and Montezuma...   Subscribe by email so you don't miss and please feel free to share this post. 


and don't forget... Popular reading for both Brokers and Trucking Companies -

Negotiating with Freight Brokers


Book, CD or Set





18 Wheels of Justice Series available on Amazon and at: http://www.18wheelsofjustice.com/


Wednesday, July 11, 2012

Driver Pay Continued - A Lesson from Cortes and Montezuma

Good Morning and Welcome.

Check out our new Publication "90 Days to 75% Retention" A Real Plan for Driver and Owner Operator Retention

"Out in the West Texas town of El Paso, I fell in love with a Mexican girl..." Continued from yesterday.  We have a lot to cover on this topic, so posts will continue daily throughout the week...

So the new higher pay rates were a huge a success, the next few weeks were chaotic with training, but the plant was back at full production.  There was a lot of back slapping and hand shaking as the executives were very happy.  This higher cost of labor was fairly easy to absorb in the cost of the product, (when a production line sits idle because of lack of labor, as we all know, it's not good for anybody) and more importantly they were able to meet customer demand.


All was well for a few months.  Jorge and his European superiors were pleased with the results.  Although initially not pleased with the pay raises, the cost of turnover, the training costs, the lost production time that were eliminated with the new pay program, more than made up for the additional cost.  They had invested millions upon millions in this strategic facility, and having expensive manufacturing equipment and real estate sitting idle was unthinkable.


A lot of the other mequilla's followed suit, as competitors often do, raising pay and having different levels of success, but success, nontheless.  Although not competitors in the conventional sense of the word, the mequilla's were competing for labor, which is a whole different ballgame.  And a dicey ballgame at that.  It does not follow conventional wisdom, it is not an issue you can throw money at, it requires a new approach. 


Check out our new Publication "90 Days to 75% Retention" A Real Plan for Driver and Owner Operator Retention

Then - slowly but surely and almost predictably, the new employees started to leave one by one... Where and Why?  I think you will be surprised.

The saga continues on Thursday with HR Policy recommendations from Cortes and Montezuma...   Subscribe by email so you don't miss and please feel free to share this post. 


and don't forget... Popular reading for both Brokers and Trucking Companies -

Negotiating with Freight Brokers


Book, CD or Set





18 Wheels of Justice Series available on Amazon and at: http://www.18wheelsofjustice.com/


Tuesday, July 10, 2012

Driver Pay - A Lesson from Cortes and Montezuma

Good Morning and Welcome.

Check out our new Publication "90 Days to 75% Retention" A Real Plan for Driver and Owner Operator Retention

"Out in the West Texas town of El Paso, I fell in love with a Mexican girl..."

In the mid 2000's I acquired an El Paso, TX based trucking operation and spent much of my time early on visiting and getting to know my new customers across the border in Juarez, Mexico.  Juarez is fascinating, hustling, bustling border city, full of all of the good and bad elements that come with the US-Mexico border.  One evening over dinner and drinks at Maria Chuchena's with a customer(highly recommended,  and don't worry about the the chalk body outlines on the sidewalk, the drug cartels only aim at rivals, are relatively good shots, and otherwise employ generally nice people) anyway, he was the GM of a Mequilladora in Juarez, he was discussing hiring and retention issues in his plant with factory workers.   For those unfamiliar with the word, Mequilladora is a generic reference for a manufacturing plant owned by a foreign(non-Mexican) corporation. 

"Jorge" as we'll call him, was explaining his struggle with hiring and retaining factory workers.  There are literally hundreds of large manufacturing plants in Juarez and the competition for workers has become fierce over the years.  Originally chosen as a excellent location for bountiful, low cost labor, the plants were constantly battling the same issues with retention that face trucking companies today. 

Jorge described his plants initial approach to the problem, which was simple, made sense and all the executives were on board with the idea.  Pay them more than anyone else.  A lot more.  Not double, not triple, but quadruple, Yes. 4 times what the other factories were paying.  This will stop the turnover.  This will cut our hiring costs and we can increase much needed production. Why wouldn't this solve the problem? Surely the local labor force would be knocking the door down and lined up to work at the factory.  I agreed, and was impressed with this bold plan, it sounded like an excellent idea.  I was on the edge of my seat as I ordered another round for us as Jorge continued his story... 

So it was announced on a Friday afternoon.  The word spread quickly and echoed across the rolling hills of Chihuahua and they came...And did they ever, not by the hundreds, but, by the thousands, to work at his plant.  When Jorge was driving into work early on Monday morning, he saw the streets lined with people.  His first thoughts were of the late, great Senor Villa and his revolution, and that the good people of Mexico had risen once again to claim their country and his plant...

Jorge's saga continues on Friday with HR Policy recommendations from Cortes and Montezuma...   Subscribe by email so you don't miss and please feel free to share this post.  I have to keep this short as it is a blog.  If I was left unsupervised and to my own devices, I could write a book about retention and trucking.  Wait.  Hold on a minute, I did.  I wrote two!  Check them out below.  Have a good day.

Check out our new Publication "90 Days to 75% Retention" A Real Plan for Driver and Owner Operator Retention

and don't forget... Popular reading for both Brokers and Trucking Companies -

18 Wheels of Justice - Negotiating with Freight Brokers
Book $29 CD $20 Book & CD Set $39


Book, CD or Set





18 Wheels of Justice Series available on Amazon and at: http://www.18wheelsofjustice.com/


Sunday, July 8, 2012

Weekend Update - Executive Briefing - Top Ten Driver List

Good Morning and Welcome.

This is presented and written for drivers, owner operators and recruiters.  This is Part one of a three part series, please see blog history for parts II and III.    Check out our new book "90 Days to 75% Retention" A Real Plan for Driver and Owner Operator Retention Solutions 


Company Drivers.  Are you happy with the company you are driving for?  How and why did you pick the one you're at?  Was it an ad? A reference?  Did you just need the job and go with the first place you could find?

Here at the Bleater, we hear a lot of complaints about lack of pay in the OTR trucking industry.  Why do trucking companies spend so much on advertising and recruiting?  It seems to me that if they spent more money paying drivers, instead of advertising, they would have all the drivers they needed.  Not neccessarily true...

Think back through your driving career.  Where were you employed at the longest?  Do you tend to work for a company for less than a year and leave for something that seems better?  Pays better?  Were you promised something that never happened?  This happens way too often. 

The recruiter promises you the world on a silver platter.  You can't wait to get started and then guess what?  The first week on the job you realize that this was a big mistake.  So, you contact the recruiter to ask, "why am I sitting so much?  Why can't dispatch seem to get me home?"  He says he will look into and address with dispatch, but nothing changes.  You stay a month, maybe three, hoping it will work out, and it never does...

Are all recruiter's dishonest? Of course not! Are all trucking companies dishonest?  No!  There is often a disconnect between recruiters and operations.  Read on and I will show you how to find out before you start...


This is part 1 of  3 of the "18 Wheels of Justice Top Ten Driver Checklist".   This list will cover how to negotiate the best pay, find the best company and what to look for in a company.   I will keep it simple and to the point.  It's in three parts, because blogs are supposed to be short, according to my editor.  Anyway, back to the point...

Print, email or just find a pen and notepad and keep this list, so you will have it with you.  Forward to your wife or significant other, so they can help you.  This is a major life decision, it is important to get a second opinion.  You will be thanking me a year from now, when you are no longer chasing rainbows and will have found a happy home and a serious career.  If you're not serious about your career and making money, and most importantly, being happy where you work, stop reading here.  This article is not meant for you.  You spend the majority of your adult life working, why not enjoy it?

Now, without further ado,(drum roll, please!)the Top Ten List!


10.  Make a list of no more than 5 potential Trucking companies you want to work for.  Big, Small it doesn't matter, there are many different benefits with both.  This seems like a lot of work?  Yes it is, but do once every 10 years, instead of once every 3-6 months and enjoy your success.  Approach driving like a career, and you will find your way. 


9.    Ask them for a random list of Ten drivers phone numbers, that currently work there. This is your first step, do not skip this one.  The Drivers who work there and like it, are more than happy to tell you about the company.  Driver's who work there and don't like it, are even happier to talk to you about the company.  If the recruiter tell you he/she doesn't have a random list, but a list they give out to new drivers, that's fine, they are honest.  Ask him for five from that list and ask him if he can pull up five more at random.  Take an hour, call all ten, if you only reach 5 right away, that's fine, leave a voicemail, the others will call you back before you make your decision.  Keep track of who you have talked to.  If the recruiter balks or refuses to give you a list of ten drivers, while you are on the phone with him/her the first time(this is important), run, don't walk, but run away from this company. If they can't produce on the spot, don't work there, you will regret it later.


8.    Pay! - Don't ask, Don't ask, Don't ask.  Should I say it again?  Don't ask yet!  This is for later in this new realtionship, Ladies and Gentlemen.  If they mention pay, don't acknowledge it, just mention you are on "the market" and are looking for a home.


Part II on Monday.  Tomorrow's Bleater - Oh Brother, Where Art Thou? Part II - Where did my Owner Operators and Driver's go?
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18 Wheels of Justice - Negotiating with Freight Brokers
Book $29 CD $20 Book & CD Set $39


Book, CD or Set





18 Wheels of Justice Series available on Amazon and at: http://www.18wheelsofjustice.com/