Transcript
WEBVTT
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M H. Welcome back to the
road forward, a podcast for trucking industry
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leaders, brought to you by trucks, by the all in one fleet management
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platform built to empower your drivers to
be productive, compliant and safe. My
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name is Alex. today we're sitting
down with roanuck and shive, them from
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ant cell services, where they make
it easy to recruit and retain your drivers.
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In this episode we're gonna discuss driver
shortage and why. The answer maybe
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is a little bit more nuanced.
We compare over the road to last mile
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and the challenges and advantages to both. We also discussed the job market and
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how employees and companies can make better
decisions with data. Let's get started.
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The first thing I want to talk
about is a driver shortage. Okay,
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because I'm seeing different videos online,
I'm seeing different people online. They're saying,
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Oh, there's no driver shortage,
especially because us, the rate is
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like for free. I don't know
if you guys have been paying attention to
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lane rate data or anything like that, or just volumes in general right.
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Obviously it's one of those things that
it always fluctuates and the rates oftentimes reflect
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those fluctuations. However, a big
argument that I'm seeing people say is there
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is no driver shortage is because the
rates are so so so, like cheap.
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However, to my understanding, we've
met and talked before, is that
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you, guys, because your company
specifically deals with onboarding and drivers and applicants
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and stuff like that, you have
the like, the expertise, the knowledge,
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like firsthand on whether or not there
actually is a driver shortage. So,
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Um, wh whoever is better equipped
to answer that question? Is there
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actually a driver shortage? I can
take that real quick. Short, short
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and sweet answer is yes, certain
parts of the country has shortage. We're
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seeing a lot of people go move
away from the trade, meaning like driving
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a truck and going into different and
field. So Um, short and simple
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answer in my view, it is
we're seeing a lot of pockets right of
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city and state. Every city and
every state is different, but a lot
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of pockets inside. Um, if
you look at the data, uh,
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there is a shortage. We're seeing
a lot of baby boomers moving away and,
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you know, retiring, which is
causing youngsters not to go into this
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trade because they see, oh well, you know, on the road,
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this doesn't seem like a good life. I could even I can do other
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things right, like invest and make
that money. So, Um, short
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and sweet answer, I would say
there is a stom religion pockets and then
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show them if you wanted time.
Yeah, and just to add to that
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right. So, you know,
we keep getting out of this question.
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And what I tell people is you
cannot really paint the whole market with the
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same brush. Every micro market is
so distinctly different. Like we recruit in
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Atlanta, we recruiting Savannah, Georgia. Both those places a couple of hours
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away and the markets cannot be more
different. And that's what we've seen,
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uh, that we've seen pockets where
we find drivers in the dozens, uh
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you know, who who are,
who are really desperate for a job,
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and then we see places like,
say, Utah or you know, a
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lot of different pockets where nobody seems
to want a new job. You know,
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everyone seems to have everything sorted to
a couple with that, with the
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general driver shortage, we're seeing,
you know, a plummet in terms of
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retention of drivers. People just don't
keep, you know, stick to the
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same job. I think the last
couple of years of spoiled people would sign
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on bonuses. They realize that they
could jump ship and make a couple of
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percentages more, and that trend does
not have seemed to have, you come
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down. We're still seeing super high
turnover and that's, I think, where
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a lot of the problem stems from, with people not having enough drivers.
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It's because, you know, they're
just running through a lot of these drivers
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a lot faster. Okay. And
so you said markets like in Atlanta,
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in Savannah. Right. So,
Um, that's that. Cities. What
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are their three hours apart, roughly, and so you're saying those two markets
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are wildly different and they're in the
same state. Um, similar geography,
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weather is decent basically all year round. And so even those two different markets,
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it's wildly different results on what companies
get went for applicants absolutely similar,
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like Dallas and Houston. Just today
we were talking to someone because based out
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of Dallas, we're based out of
Houston. Uh, completely different, like
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there are two different, you know, parts of the country and what.
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And so what is what is the
like? Why is there that difference?
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Is it like the bigger the city
gets, the harder it is to find
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drivers generally because maybe a bigger city
attracts like higher tech jobs and stuff like
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that. And inevitably like less truckers. Like what? What is the difference
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between Um Different markets that you've you've
you've noticed maybe some of the key top
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markets that you guys are in.
So honestly, it's just been tough.
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It's it's been tough to put our
finger the exact problem. For example,
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Chicago is a massive city, extremely
tough to find drivers that. At the
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same time, Houston is a large
city as well, a lot easier here.
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So my hunch, and it's it's
all a hunch, is that it's
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demanding supply. UH, number one. Number two, it's just the demographics
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of those cities. For you know, for obvious reason, in San Francisco
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just sees a lot more high income
people presiding in that city and so it's
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a lot difficult to finding low income, you know, blue collared workers.
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Uh, and at the same time, you know, Houston might just have
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a lot more of them. But
it's been difficult for me to kind of
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put the finger on the problem.
But what about Ronic? So one thing
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and and like almo was saying,
it's all a hunts right. Right now
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we're just throwing darts and hoping that
we hit the bulls eye. Right in
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the dark. So my hunches two
things. Right, it's twofold. So
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I've seen a lot of cities,
right. I'll give you example, Kansas
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City, Missouri, and Lenexa Kansas
right in that area. I've seen a
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lot of trucking jobs, right,
like big trucking companies that are there,
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and it's hard to find and compete. So like our you know, most
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of our clientele is and within Fedex
and Amazon. So Fedex contractors are looking
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for the you know, the same
from the same pool as everybody else's.
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So who is able to streamline it
and get to that pool faster? Um,
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is the ones who get the drivers. Um. So it's very hard
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to understand and figure out, okay, what city and what's going on,
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because we have to look at the
microcosm of what what the job market looks
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like in that particular city and who
are you competing against? So Um,
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like Chilan was saying, supplying the
man and just looking at every city differently
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and how to figure out what strategies
to use. So a good question would
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be, like how does a driver
find out, like what market he's in?
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Is he in a difficult market it? Is he in a like an
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easy market. Like how did,
where does the world, a driver go
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to figure this information out? Um, because knowing this information would then help
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him determine whether he can ask for
higher pay, an onboarding bonus, a
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m a ninety day bonus. Right. So, Um, depending on what
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marketing and so where would a driver
find like this information? That's a great
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question. Now, so I'll tell
you this. Right. So, all
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the job boards and if they are
on indeed or you know, facebook jobs
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and stuff, there are stats out
there that show that, hey, this
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is how many jobs are available versus
how many applicants. So we are all
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the time. What we're doing is
educating o our clients and saying, Hey,
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this is the job market you're in
and specific and this is what your
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pay should be. So, Um, we're educating them. But having that
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knowledge for a trucker or for you
know, employee in general is great to
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have. So Um, you should
have that in your toolbox, you know,
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and I'll be more than happy to
talk to Um, talk to people
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and talk them through how to get
to that. But, like I said,
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so indeed. We'll tell you.
Okay, you're posting and there's ninety
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thousand jobs out there. Where there's
only fifteen applicants, so like wow,
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okay, one is too flour wow, okay. This is how you understand
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and figure out that you're in a
tight job market, which will help you
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negotiate better. Um, you know, pay better benefits. A lot of
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the Times I've seen is it's all
about benefits more than the pay. Your
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pay is important, but also like
having that benefits. So we educate our
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clients. You know, we were
just able to educate one of our clients
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who was in Kentucky and told them, Hey, this is the job marketer
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and this is what the pay scale
should be. This person did not have
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any health benefits, right, like
health insurance and so on and so forth.
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He just started adding that. So
knowing what market you're in will help
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you, also from client perspective.
We're able to do that, and from
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trumper's perspective as well as an employee. Right. So if you're a driver,
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you want to know, like your
location, your market, because maybe
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maybe you're working for company A and
their ten mile commute for you and you'd
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really want to work for company B
that's a one mile commute, right,
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like that's important. Fuel as expensive, so you're trying to, but when
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you go apply for company B,
they may be not paying you or they
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don't have the same benefits package.
And so knowing what your market like,
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what your job market is for your
local area, can help you get that
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job that's better for you because you
live closer or something like that. Um,
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and then from there you will get
paid the same with similar benefits and
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so Um. If you are a
driver, make sure you're paying attention to
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this, like, Hey, learn
your local job market dynamics so then you
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can use that information to your advantage. And as a company, like,
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learn your local job dynamics to make
sure you're not under paying, because then
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you're gonna be scratching your head.
Why am I paying like? Why do
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I why is my turnover so high
when you're ten percent under what the job
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market in your areas you normally pay? So Um. So really, that's
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that's valuable and like like you,
like Um, it's it's very important to
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know from employers as well as employee. But Um, you know, employers
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find that out too late and it's
very important to know ahead of time because
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when they find out, it's already
too late and they're engaging us saying,
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Hey, I have to reject all
these loads because I can't take them.
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I don't have employees. Right.
So it's important to educate yourself and keep,
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you know, keep educating and understanding
what the market and markets keeps on
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changing. Right every every six months
it's like, oh, something new has
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happened and this is what the market
is so understanding as an employer is very
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important. Right, people are moving, people are moving across state lines all
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the time. You don't know,
six months there might have been a shortage
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of these types of you know,
demographics, and now there's not. So
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it's like, yeah, you definitely, as both as an employee and as
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a company owner, you want to
make sure you're paying attention to your local
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Um, your local information, so
that then you can both both get good
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retention and get good customers, provide
that service that you you know that customers
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want to you, but also,
Um, as an employee, you can,
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you know, get the best benefits
possible exactly. And a lot of
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times, like these jobs are mobile. When you think about it, you
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know, we we have a client
in Kansas City, couldn't find team drivers
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right, so what we had to
do is get creative and get people from
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Florida. You know, Jacksonville Florida, Orlando Florida. We had a couple
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of teams. They're ready to go. They flew them out to Kansas City.
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Once they get the truck and trailer
there, there they can run wild.
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Right. They're just running wild for
two or three weeks and then they'll
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make sure they end them up in
Um, you know, their home city
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and home states. So it's very
important to know those nuances and figure out,
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okay, if my market's very tight, what can I do to make
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this better? May We may,
you know. How do I feel my
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roles? By getting creative. What
are some of the things that you have
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to, you know, think about
outside of the box as an employer to
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get an employee right? Okay,
and so, and this is where you,
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you guys, specialize, right.
It's you guys help companies like get
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drivers in the door quicker. Correct. And do you want to just briefly
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go over what does? What does
ancel services do? Sure, so,
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ancel services basically works with lost mile
and Midmile. So that's long haul truckers
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and lost minel delivery companies, helping
them recruit and then retain talent. So
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our our main focus is obviously in
recruiting. So once we work with a
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company like one, I said,
every micro market is different. We customize
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advertising strategies based on their requirements,
their cities. Sometimes posted a free job
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and indeed does the trick. Sometimes
it's a couple of thousand dollars on social
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media that does the trick. We
try to meet the candidates where they spend
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most amount of time. That could
be snapchat, that could be instagram,
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that could be, you know,
facebook jobs. And once people apply,
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it's kind of just running them through
the system. Every company has different requirements,
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you know, background checks, drug
tests, employment verifications, endorsements.
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Uh. So we kind of try
to take care of all of debt and,
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in the end of the day,
present a driver who's completely ready to
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go, who's, you know,
just needs to get badged and get started.
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Okay. So you take just a
guy maybe that's never heard of this
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of this company. That's your customer, your client. You take that person
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and get them prepped completely ready to
go for for a badge at to walk
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in the door and ready to work. Okay, and and and I could
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see how for a company that's struggling
to hire drivers right in their in their
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local marketplace they're struggling to find.
Like that would be exceptionally important because it's
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like without drivers, those trucks are
moving, not moving, they're just costing
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you money. So it's like that's
ridiculous, Um, to kind of go
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back, Um. And so you
said there's a twofold problem. Right.
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Number one is, yes, there's
definitely a driver shortage, but number two
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is there's a retention problem as well, right, whether Um, individuals or
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job hopping, which you know it
doesn't help when studies come out and say,
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like if you switch your job every
two years, you'll make more money.
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It's like that probably doesn't help.
Um. So what do you what
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do you see in the retention?
What do you see that companies do well,
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like what what are? What are
those things that a company could do
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to increase their attention? So,
you know, I've been in line hall
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for more than ten years, right. So what I've seen, and when
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I was managing a fleet of nineties
six trucks and over hundred fifty drivers,
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right, hundred twenty of them for
CDL indoors and and you know, thirty
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of them were bulk truck drivers.
But anyway, so what we saw was
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we had to create a culture where
it was a you know, we were
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appreciative of all all the things they
were doing. So we would have cookouts,
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we would have we would give them
free hat, you know, things
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that that are small but go along
way, and just, you know,
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every Wednesday we would just, you
know, have a conference area where we're
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sitting outside and just top into the
drivers and, you know, engaging them,
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making sure that they understand everything right
from taking from benefits all the way
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to, you know, what what
they're expected to do. So having those
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conversations, engaging them, because what
we have seen and what I have feel
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like this is more of a managing
the people right when you're looking for employees
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and how you manage it. If
you manage your people well, you're going
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to retain them longer. Um,
just having that understanding and them having access
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to you. So a lot of
my drivers had, you know, all
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my cell phone number, my personal
details if they wanted to reach out to
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me. I was a p and
D contractor for over two and a half
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years and my retention was a lot
higher because I had they had access to
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me right. I would talk to
them, I would go and meet them
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if it was a hot day,
I would just give them a water bottle,
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like cold water bottle and cold gatorade
goes a long way. Um.
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So doing those small things helps you
retain drivers. Obviously, what we have
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seen with other customers in the line
hall spaces, they're giving, you know,
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health care benefits not only to the
employees but also to their family members,
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UM, making sure they're treating them
nicely and fairly. Right. So
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we've seen a lot of things they
are doing to help retain I always have
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this model retention is the best kind
of recruiting. You know, if you're
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retaining your drivers, you're not going
to need recruiting per se. There's always
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teams that people turn over because they
have life events that happen, but making
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sure that you are retaining your drivers, yeah, is the best kind of
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recruiting in my view. So just
to add a little bit more to that,
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basically, I think you know,
we've we've had a lot of drivers
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who have kind of just shifted laterally. They've moved for similar pay, similar
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work, and asked them we're like
hey, you know, you were getting
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paid the same amount of money.
Why do you want to move? And
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and the big kind of headline that
came out of that servant that we did
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on more than a D people is
they're like, you know what, my
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contractor cheated me or my boss shortened
me on my pit and I know a
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lot of the people they worked for. I don't think that the you know,
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the employer did that, but it's
just some sort of a deduction,
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some sort of you know, some
details which the employee did not care to
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understand. But and because he didn't
have an open line of communication, that
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kind of read misunderstanding. Unfortunately,
what we've seen increased exponentially over the last
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couple of years. It's sort of
a distrust between employees and employers and goes
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both ways. But given that you
know your candidate, you know your employees,
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on the road maybe for a couple
of weeks at a time, you
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don't get to see him apart from
just onboarding him, keeping that communication when
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making him feel like he's a valued
member of your team, which it is.
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I haven't met a single contractor who
does not respect his drivers. Like
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you said, they need the drivers
to run their business, but it's just
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getting that point across that seems to
be missing, and it's a problem with
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scale you know, if you have
five drivers, it's easy to do.
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Once you start having like a couple
of dozen, I understand it's difficult.
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It sort of becomes like a full
time job, but you know, find
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ways just randomly reach out to a
driver, you know, check in on
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how he's doing. The other thing
is make sure when you onboard someone you
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document everything. There are too many
people I've seen in the industry that don't
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give proper documentation and it's you know, it works fine, but that's kind
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of what reads to a lot of
misunderstandings very often. Uh, you know,
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otherwise it's very easy to kind of
diffuse any situation by saying, Hey,
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go read that paper. You've got
to wrong. Just read it again,
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you'll understand right. And so it's
like, first of all, crystal
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clear outlined expectations, right. It's
like here you go, like here's this
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is what we want you to do, here's how everything works, here's how
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all your deductions work, here's every
Um you know, here's what an average
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settlement would look like and here's what
each of these deductions would look like.
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Right, so you know what you're
getting deducted and then from there have that
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open line of like hey, if
you ever have any issues, feel free
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to shoot me a call directly,
um, or maybe there's some kind of
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internal software for communication. It's like
feel free to reach out on the internal
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software communicate with us. Um.
But but, like you said, it's
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it's challenging, like you know,
because I had a company with twenty seven
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trucks and it was like, oh
my goodness, what do I do?
286
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You know, it was just all
the time, constantly, Um, you
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know, bombarded with messages and inquiries
and uh, and and certainly that can
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be resolved with good expectations and onboarding, like training in the beginning, Um
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and then, uh, you know, that will reduce that amount. But
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certainly having that open line of Communication, UM, is like massively beneficial and
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necessary, you know, at this
point. Um. And so you're seeing
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the companies that do well with retention. They they can really put those two
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things in force really well. Correct. Absolutely. I've seen, like you
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said, you know, that sample
payout letter that hey, this is like
295
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a sample, you know, one
week's paycheck and these are the deductions.
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00:20:29.000 --> 00:20:32.400
Keep it simple, uh. You
know a lot of people try to overly
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engineer the pay that I'll give you
this and then this is your safety bonus
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and this is that, which is
great. I understand you're trying to align
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people to your goals, but it
just aids a headache to compute every week.
300
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Be You know, there's just you're
just creating uh avenues for misunderstandings.
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So right, yeah, some simplicity
for sure. Yeah, Um, and
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I think that's that's certainly Um,
I wouldn't be surprised if the roots of
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that are maybe in like the mega
carriers, right, because mega carriers certainly
304
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have that overcomplicated settlements. Right.
It's like they you know, they just
305
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tons and dozens and dozens of lines
and you're like what do each all of
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00:21:15.200 --> 00:21:18.759
these means? And each line has
a minus to it, right, none
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00:21:18.799 --> 00:21:21.400
of them have a plus, you
know, it's like and so you're getting
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00:21:21.400 --> 00:21:25.279
frustrated, you know, like because
a lot of CDL holders, they went
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through the megacarriers, right. You
got your CDL with the megacarrier more than
310
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likely. So a lot of these
drivers are maybe now burned, Um,
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from the mega carriers that they may
be potentially got a CD L with,
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right, and so like that.
That makes perfect sense for sure. Like
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just keep your settlements straightforward, especially
if you're a smaller company, that can
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help with your attention. So,
Um, that's interesting. Um. But
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to go back you, you mentioned
you do a little bit of mid range,
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like long haul, regional stuff like
that, and also last mile or
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final mile. Um, talk to
me some of the differences between final mile.
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First of all, a definition like
what is considered final mile. Is
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like actually one mile, like last
mile? or Or is it something that
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brings it to the it's to your
door. It's someone that comes to the
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end customer. Okay, so that's
a package that actually it doesn't go to
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00:22:11.000 --> 00:22:14.400
the terminal. It actually goes that's
the person that delivers it to your door,
323
00:22:14.519 --> 00:22:17.160
right. That is because that is
last mile or final mile. Yeah,
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he typically picks it out from the
terminal and gets it to your door.
325
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Okay. And so any key takeaways
or differences between long haul and final
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mile? Completely different beasts in a
way. So the candidate pool available in
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long haul is a lot larger,
right. So the requirements a lot slimmer.
328
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Uh, you know, all they
need is a dalty physical. UH,
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they might need, you know,
typically people look for six to twelve
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months of commercial driving experience, which
includes Uber eats or door dash. So
331
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the availability of talent is a lot
more the quality of talent continues to be
332
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an issue. On the other hand, you know, if if you know
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someone has a cdl license, you
know that you know he's he's it's,
334
00:22:57.160 --> 00:23:00.240
it's it's his career. He's kind
of this is he's looking at this as
335
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a career. He's going to make
sure his safety is in line. He's
336
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going to make sure he followed the
rules. You don't get that same assurance.
337
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Uh and the lost model delivery space, and thus we see a lot
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of safety incidents. Is We see
a lot of contractors get into a lot
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of trouble with safety. You See
Insane amount of attrition. So Amazon delivery
340
00:23:21.079 --> 00:23:26.680
drivers turnover on average two percent of
week, and two percent a week is
341
00:23:26.720 --> 00:23:30.200
the average. I've seen plenty of
people do worse and obviously I've seen a
342
00:23:30.200 --> 00:23:34.079
couple that do better. Two percent
a week means you're replacing more than your
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whole team every year. The average
lost mole delivery company has about thirty thirty
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00:23:40.200 --> 00:23:45.839
five drivers. So like when you're
when you're talking about basically eight percent attrition.
345
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That's you know, it's a fairly
challenging situation in that space, equally
346
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different from CDL, but equally challenging
from a recruiting perspective. It's almost like
347
00:23:59.559 --> 00:24:04.880
your entire our business isn't actually delivering
packages on time, it's just hiring drivers,
348
00:24:04.920 --> 00:24:08.240
like that's your entire business of getting
drivers in the door. That's funny,
349
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you said that. So we were, like ronuck mentioned, you know,
350
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we were contractors running, you know, at the time, almost fifty
351
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plus drivers in the lost Mile Space
and we were looking to expand that.
352
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And then, you know, when
we took a harder look at the problem,
353
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we're like, this is in the
logistics problem. This seems to be
354
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a recruited issue and let's solve that
first. And doing that is kind of
355
00:24:32.319 --> 00:24:34.480
how, you know, and Sol
services came about. And now we work
356
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with like two businesses. We process
thousands of candidates every day, uh,
357
00:24:40.799 --> 00:24:42.359
you know, for our clients.
And and what markets are you are?
358
00:24:42.359 --> 00:24:47.799
You guys baseded all over the US? We're thirty five states, uh,
359
00:24:48.000 --> 00:24:52.440
you know. Uh, we we're
physically based in Houston. A lot of
360
00:24:52.440 --> 00:24:55.559
our teams are distributed. Okay,
so you guys work with customers all over
361
00:24:55.559 --> 00:24:57.240
the US. That's that's pretty great, Um, and this is why it's
362
00:24:57.240 --> 00:25:00.680
really interesting, like you know,
you, you, you have have that
363
00:25:00.799 --> 00:25:03.960
insight, like to see all the
differences and so, Um, that's that's
364
00:25:04.000 --> 00:25:10.400
crazy man like, oh my goodness. Um. But the advantage of probably,
365
00:25:10.440 --> 00:25:12.160
though, and see, and this
is where the question that becomes right,
366
00:25:12.160 --> 00:25:17.720
it's like the advantage of last mile
would be that you get to see
367
00:25:17.759 --> 00:25:22.000
your drivers every day. And so
you would maybe think that, because you
368
00:25:22.000 --> 00:25:23.799
get to see your drivers every day, because you get to see those vehicles,
369
00:25:23.799 --> 00:25:27.000
they're not broken, they're not you
know, you can take better maintenance
370
00:25:27.000 --> 00:25:32.480
of them, like you would think
that would help with their retention. You
371
00:25:32.519 --> 00:25:34.839
would think that would help with with
with a turnover, but it doesn't.
372
00:25:36.279 --> 00:25:38.400
I mean, like, why is
that so? What? What is the
373
00:25:38.480 --> 00:25:41.759
issues then, with with last mile, like what? What? Like?
374
00:25:41.839 --> 00:25:45.400
What are why are people not wanting
to do it? Is it like you
375
00:25:45.440 --> 00:25:48.000
gotta? Is it? You know, Um, I recently saw like some
376
00:25:48.000 --> 00:25:52.880
some trucks, for some local delivery
trucks in Arizona don't even have air conditioning
377
00:25:52.880 --> 00:25:56.079
in them. Like is it just
the like the like? Would that be
378
00:25:56.160 --> 00:25:57.799
part of the issue? Like if
it's a hundred ten degrees outside in your
379
00:25:57.799 --> 00:26:00.599
truck doesn't have air conditioning, like
I wouldn't want to work in that.
380
00:26:00.680 --> 00:26:03.680
You know what I mean. Um. So, like, what are the
381
00:26:03.759 --> 00:26:07.200
issues that? Like, why is
the turnover so high in the last mile
382
00:26:07.400 --> 00:26:11.160
when everything is setting up for it
to be not high? So I'll tell
383
00:26:11.200 --> 00:26:15.720
you from other experience. Right,
every terminal. So they're in fedics contracting
384
00:26:15.799 --> 00:26:19.160
perspective. Right, there's over six
hundreds some terminals all over us. Right.
385
00:26:19.240 --> 00:26:23.319
So, uh, you know,
every terminal has more than tend to
386
00:26:23.400 --> 00:26:27.960
twelve on average contractors. Over terminal
where I was based out of in Austel,
387
00:26:29.039 --> 00:26:32.960
Georgia, there was over twenty five
contractors in that same terminal. So
388
00:26:33.599 --> 00:26:37.799
every contractor runs their business differently.
Right. So some contractors will see,
389
00:26:37.880 --> 00:26:42.319
like everyone was saying two to five
percent a week turnover, right, versus
390
00:26:42.599 --> 00:26:45.880
when, when I first started,
I was having that because we had to
391
00:26:47.000 --> 00:26:52.119
change the whole culture in the mindset
of drivers. Right. So, understanding,
392
00:26:52.400 --> 00:26:56.599
like there's no blanket answer. Hey, this is why it is right.
393
00:26:56.680 --> 00:27:02.480
Every contractor runs their business completely differently. So some contractors don't even have
394
00:27:02.559 --> 00:27:06.559
a handbook. Right, as simple
as help showman was saying, just having
395
00:27:06.599 --> 00:27:10.880
a guideline. Hey, these are
your expectations. You get paid every Friday.
396
00:27:10.920 --> 00:27:15.039
This is my way of paying.
You will get direct deposited, whatever
397
00:27:15.079 --> 00:27:18.319
the case may be. Not Some, some people don't give their phone number
398
00:27:18.519 --> 00:27:22.200
right too. As an owner,
they're like, Oh, I'm above this,
399
00:27:22.319 --> 00:27:25.960
I'm not going to give phone number
much to my employees. My first
400
00:27:26.079 --> 00:27:29.599
day I came in, Hey,
here's my phone number. This is the
401
00:27:29.880 --> 00:27:33.160
you can call me anytime up to
this point. If you there's an emergency
402
00:27:33.200 --> 00:27:36.759
after this point, just give me
a text and I'll take a look at
403
00:27:36.799 --> 00:27:41.680
it. Right. So having that
same thing right is. You cannot pinpoint
404
00:27:41.880 --> 00:27:48.359
one thing that works for a contractor
whereas another doesn't work. So, uh,
405
00:27:48.599 --> 00:27:52.880
it's it's knowing your employees and understanding
one at a time to figure out.
406
00:27:53.119 --> 00:27:56.839
So I give this example, and
you know I'm going on a different
407
00:27:56.839 --> 00:28:00.279
tangent, but I'll give you an
example. I use to volunteer at a
408
00:28:00.359 --> 00:28:06.279
daycare. Right. So the daycare
had anywhere from a two year old all
409
00:28:06.319 --> 00:28:08.599
the way to a thirteen year old. So I did not talk to a
410
00:28:08.640 --> 00:28:12.119
two year old the same way I
would talk to a thirteen year old.
411
00:28:12.440 --> 00:28:18.839
So it's knowing how to talk to
your employees and what are their buttons and
412
00:28:18.880 --> 00:28:25.440
how you can manage that right.
So that helps reducing your turnover. Um,
413
00:28:25.559 --> 00:28:27.759
some people are not good at it. Some people need lessons on how
414
00:28:27.799 --> 00:28:33.000
to do that. That will help
their retention. Another thing I suggest on
415
00:28:33.160 --> 00:28:38.640
retention side. What happens is when
we're on boarding someone right there, there's
416
00:28:38.680 --> 00:28:42.880
like ten steps to get them through
the system for Fed X. that's the
417
00:28:44.160 --> 00:28:48.839
that's minimum right, even in last
mile. Um. So all in all
418
00:28:48.920 --> 00:28:55.599
there's about fifty things employee goes through
when they're getting hired for a company.
419
00:28:55.759 --> 00:28:59.920
That's just average of things they have
to do to get hired out of fifth.
420
00:29:00.480 --> 00:29:03.359
If they remember five of those things, that's good right. Ten percent
421
00:29:03.440 --> 00:29:07.559
retention is is what they'll remember when
they're on boarding. So it's very important
422
00:29:07.599 --> 00:29:11.000
to have that line of Communication.
Yeah, given a handbook is great,
423
00:29:11.400 --> 00:29:15.720
but talking through each point and you
don't have to do it all in one
424
00:29:15.799 --> 00:29:18.839
day. You could do it over
a couple of weeks or three weeks.
425
00:29:19.079 --> 00:29:22.960
So that first thirty to sixty days
are very important when it comes to,
426
00:29:23.200 --> 00:29:26.759
you know, onboarding them and making
sure you have that thirty day talk,
427
00:29:27.160 --> 00:29:32.319
Sixty Day talk, Ninety Day talk, uh, to help on the retention
428
00:29:32.359 --> 00:29:34.599
side. So there's no one single
answer say hey, I'm better than this
429
00:29:34.640 --> 00:29:37.920
person is or you know, I'm
the best at it. You always have
430
00:29:38.000 --> 00:29:42.799
to learn and understand how to talk
to your employees. What are their buttons,
431
00:29:44.119 --> 00:29:47.480
and then, on the onboarding side, making sure you're holding their hands
432
00:29:47.640 --> 00:29:52.079
longer Um to help with the retention. Don't be wrong, I totally understand
433
00:29:52.119 --> 00:29:56.039
the like customize your approach to each
driver. Totally get it right. Different
434
00:29:56.079 --> 00:30:00.200
people offer it in different ways.
So you want to learn the person sin
435
00:30:00.279 --> 00:30:03.160
and then customize your approach to the
individual person. Totally get that, but
436
00:30:03.640 --> 00:30:08.279
it still doesn't answer why. Like, why is it that on last mile
437
00:30:08.799 --> 00:30:14.160
like on last mile, why are
they why are they struggling? Why is
438
00:30:14.160 --> 00:30:17.960
there like turnovers so high compared to
like when they have all of the things?
439
00:30:18.079 --> 00:30:19.680
I thought for sure the last mile
would be good. Like is the
440
00:30:19.680 --> 00:30:22.640
page is not enough? is like
doing fifteen dollars an hour. I don't
441
00:30:22.640 --> 00:30:25.960
know what the pay is, but
like, for assuming it's fifteen dollars an
442
00:30:25.960 --> 00:30:27.720
hour, would that be just not
enough for jumping in and out of your
443
00:30:27.720 --> 00:30:30.680
truck and doing a hundred deliveries a
day? Like, what are the issues?
444
00:30:32.119 --> 00:30:36.119
So last mile of delivery, contrary
to you know, popular belief.
445
00:30:36.160 --> 00:30:40.079
It pays decently. I wouldn't say
it pays amazing, but for someone who
446
00:30:40.079 --> 00:30:42.319
may not, you know, have
an education, who may not have,
447
00:30:42.720 --> 00:30:49.079
you know, any certifications or something
like that, last mile is good,
448
00:30:49.799 --> 00:30:55.279
solid income. It's consistent, there's
always a demand, you know all those
449
00:30:55.319 --> 00:30:57.599
things. It's not like an uber
eats, which is based on surge and
450
00:30:57.640 --> 00:31:02.240
all of that stuff. So pay
well and that's why it attracts a lot
451
00:31:02.279 --> 00:31:06.960
of applicants. But I'll tell you
another thing. I've delivered packages. I've
452
00:31:07.000 --> 00:31:08.440
tried that out for a couple of
days. It's a tough job. You
453
00:31:08.480 --> 00:31:15.000
know, you mentioned air conditioning.
These guys are lugging mattresses, so Fus,
454
00:31:15.400 --> 00:31:19.240
three flows up an apartment without an
elevator. They're doing a hundred and
455
00:31:19.279 --> 00:31:23.359
fifty stops. They're driving to rural
locations which, you know, don't have
456
00:31:23.440 --> 00:31:29.160
proper roads. UH, they're dealing
with you know, they're dealing with dogs,
457
00:31:29.160 --> 00:31:32.480
they're dealing with the weather, they're
dealing with, you know, the
458
00:31:32.519 --> 00:31:37.400
elements basically, and all of this
and they're getting, you know, pressured
459
00:31:37.759 --> 00:31:42.359
to make certain deliveries because the contractors
getting pressure to maintain certain efficiency standards.
460
00:31:42.839 --> 00:31:47.359
So it's stuff on the body.
There's no two ways about it. It's
461
00:31:47.400 --> 00:31:52.599
a tough job. Ah. The
second thing is it's again it's the demographic
462
00:31:52.599 --> 00:31:56.160
in the candidate poll, because it's
so easy to get in. Not Enough
463
00:31:56.200 --> 00:32:00.240
people think of it as a career. And again, I think this is
464
00:32:00.279 --> 00:32:02.319
also a little bit of the last
two years. Maybe you've had this,
465
00:32:02.480 --> 00:32:07.559
you know, completely lopsided labor market. Everyone just has so many opportunities.
466
00:32:08.480 --> 00:32:13.920
Uh. That and and the average
age of a lost amount of delivery drivers
467
00:32:13.960 --> 00:32:16.319
basically between twenty five and thirty five. At that age, a lot of
468
00:32:16.359 --> 00:32:21.759
people just maybe not that serious and
thus they're, you know, they're bouncing
469
00:32:21.759 --> 00:32:25.200
around, trying different things because the
options are available. They can walk down
470
00:32:25.200 --> 00:32:29.759
the street and get a job that
pays similar amounts of money. Uh,
471
00:32:29.799 --> 00:32:34.000
you know when they get tired of
this. So it's it's definitely a difficult
472
00:32:34.079 --> 00:32:38.359
job and that does play the attrition. I also think it's the demographics,
473
00:32:38.400 --> 00:32:43.839
just because they're younger, not that
career oriented at that age. Right when
474
00:32:43.880 --> 00:32:45.400
you're when you're in your forties,
you know you're a little bit more serious
475
00:32:45.400 --> 00:32:49.400
about what do you want to do
the next five seven years? Because at
476
00:32:49.400 --> 00:32:52.400
the end of the day, you
like at forty, you're probably been thinking
477
00:32:52.400 --> 00:32:54.799
about like, well, I'm I'm
gonna Retire in Fifteen, twenty years.
478
00:32:54.839 --> 00:32:59.599
You know, it's like I probably
should start saving up rather quickly, because
479
00:32:59.640 --> 00:33:01.400
it's like then I'm not gonna have
much to live off of when I'm retired.
480
00:33:01.480 --> 00:33:05.799
So and at you're like, dude, I got the whole life,
481
00:33:05.799 --> 00:33:07.960
I have my whole life ahead of
me. You know what I mean?
482
00:33:07.039 --> 00:33:10.519
It's like, Um, yeah,
and you know, it's it's like like
483
00:33:10.720 --> 00:33:14.720
look at me. You know,
it's like I went from trucking to being
484
00:33:14.720 --> 00:33:16.119
a podcast, you know editor,
you know, and it's like I learned
485
00:33:16.119 --> 00:33:20.400
while to like editing, Um,
you know, whild, like not while
486
00:33:20.440 --> 00:33:22.839
I was driving, but I learned
it while I was parked and whatnot,
487
00:33:22.880 --> 00:33:24.759
and just because I was bored.
And it's like it's amazing that. Yeah,
488
00:33:24.799 --> 00:33:30.079
you could make similar, if not
more money doing something from home,
489
00:33:30.480 --> 00:33:34.599
like digitally, Um, instead of
having to drive day in and day out
490
00:33:34.599 --> 00:33:38.799
and deliver packages. So, Um, it makes sense that people are constantly
491
00:33:38.839 --> 00:33:44.240
searching, Um, but that just
makes it challenging for the companies when,
492
00:33:44.559 --> 00:33:46.039
at the end of the day,
you know, it's like I order on
493
00:33:46.079 --> 00:33:50.000
Amazon, I want my packages in
a day or two, you know.
494
00:33:50.079 --> 00:33:54.079
So it's like the demand is ever
increasing, Um, and so it's like
495
00:33:54.839 --> 00:33:58.519
it's gonna be a tough balance,
which, you know, kind of leads
496
00:33:58.559 --> 00:34:01.880
me like where do you? I
see with Um, you know, automation
497
00:34:02.000 --> 00:34:06.680
or self driving trucks, like,
like do you guys have any insight into
498
00:34:06.680 --> 00:34:09.320
that and like how does your like
will your business model take that into account
499
00:34:09.760 --> 00:34:13.800
too as well, like what happens
within the next five to seven years they
500
00:34:13.800 --> 00:34:15.639
start putting those on the road?
Like, what do you do there?
501
00:34:15.039 --> 00:34:19.079
So we had a lot of conversations
on that, uh, and and that
502
00:34:19.079 --> 00:34:22.639
that is something that we're off.
So again, two different segments. In
503
00:34:22.719 --> 00:34:29.480
terms of lost model delivery, I'm
not that worried. I feel the depth
504
00:34:29.559 --> 00:34:31.840
of the market and what's opening up
in terms of lost mile. So,
505
00:34:31.880 --> 00:34:35.639
you know, when we think of
Lost Mile, we think of, you
506
00:34:35.639 --> 00:34:38.239
know, packages, we think of
Amazon Fedex and ups, which is there,
507
00:34:38.599 --> 00:34:42.960
but they're probably less than the market. You know, you look at
508
00:34:43.199 --> 00:34:49.639
food delivery, grosserly delivery, cannabis
delivery has become massive these days. Basically
509
00:34:49.800 --> 00:34:53.360
everything is getting delivered to you by
either a, you know, a w
510
00:34:53.480 --> 00:34:59.119
two worker or a ten ninety nine
flex worker. Uh, you know best
511
00:34:59.199 --> 00:35:02.559
by wall more. They're all now
using their own delivery fleet in a way.
512
00:35:04.039 --> 00:35:06.719
Uh. You know, you order
on the apple website, you pay
513
00:35:06.840 --> 00:35:09.920
nine dollars, you'll get your iphone
today and that's that's not being delivered by
514
00:35:09.920 --> 00:35:14.880
Fed egg. That's someone driving their
own car going to the Apple Store and
515
00:35:14.920 --> 00:35:16.320
picking things up and delivering to you. So, you know, that's a
516
00:35:16.320 --> 00:35:21.960
segment where maybe we're not too worried
for the next five to ten years.
517
00:35:22.320 --> 00:35:25.360
I mean, and the depth of
the market is insane in long haul trucking.
518
00:35:25.719 --> 00:35:30.159
I do feel that there will be
some disruption. I don't know if
519
00:35:30.159 --> 00:35:34.800
we will replace the driver. It
might increase their efficiency, maybe the hours
520
00:35:34.840 --> 00:35:37.119
of service will get elongated or something
of that sort, because you know,
521
00:35:37.320 --> 00:35:42.840
self driving would make them just more
efficient, they'd be less tired, uh,
522
00:35:42.920 --> 00:35:46.559
and you know that that would be
a welcome change. It would help
523
00:35:46.760 --> 00:35:51.800
make this whole process more efficient,
make quality of life better for a driver.
524
00:35:52.519 --> 00:35:57.320
It will make quality of life better
for the owner. Uh. But
525
00:35:57.440 --> 00:36:00.239
yes, I do. I do
think we're, you know, still some
526
00:36:00.400 --> 00:36:05.360
time away. It's just not the
technology of self driving, it's the charge
527
00:36:05.400 --> 00:36:07.760
in infrastructure and a whole lot of
other things that I guess need to build
528
00:36:07.840 --> 00:36:14.079
up and, you know, we
maybe and and we'd obviously have to innovate
529
00:36:14.199 --> 00:36:19.000
and evolve with the changing dynamics.
Um, but yeah, that's definitely something
530
00:36:19.039 --> 00:36:22.079
that we talked about. We're gonna
bring back full service, uh fuel stops,
531
00:36:22.199 --> 00:36:29.079
you know, where they actually pump
your fuel for you. Uh So,
532
00:36:29.599 --> 00:36:31.800
uh right, and and and that
that sounds about right. You know.
533
00:36:31.840 --> 00:36:36.039
It's like, Um, the first
thing it'll do is more than likely
534
00:36:36.079 --> 00:36:37.760
make it more efficient, which is
Um, you know, it's like,
535
00:36:38.159 --> 00:36:42.159
and that's a good example of like
hey, maybe instead of eleven hours,
536
00:36:42.199 --> 00:36:45.840
you can now do thirteen, because
two of those hours you're really not doing
537
00:36:45.920 --> 00:36:47.679
much, you know, during the
day, because the truck is almost driving
538
00:36:47.719 --> 00:36:51.599
itself. So, Um, that
that's interesting. So it's gonna be,
539
00:36:52.000 --> 00:36:55.960
it's it's gonna be. It's gonna
be really like you want to pay attention
540
00:36:57.000 --> 00:37:00.559
to it because you don't know exactly
how the market like, how the industry
541
00:37:00.559 --> 00:37:04.480
will change, right, how the
trucking industry will welcome that feature, and
542
00:37:04.480 --> 00:37:07.800
whether it's through, you know,
new law, like adjustments in the laws,
543
00:37:07.199 --> 00:37:10.280
Um, whether it's like the the
Co pilot program where, like one
544
00:37:10.320 --> 00:37:14.880
truck follows like an actual driver drives
the front truck, but the other truck
545
00:37:14.960 --> 00:37:17.400
the guy is sleeping and it's just
being it's just following the truck in front.
546
00:37:17.440 --> 00:37:21.280
So that's I think it's a CO
pilot program so, Um, depending
547
00:37:21.320 --> 00:37:23.480
on how the industry adapts to that, it's gonna be really interesting. But
548
00:37:23.800 --> 00:37:30.239
Um man, that's uh, it's
it's it's always really interesting having, you
549
00:37:30.280 --> 00:37:32.880
know, like you guys guests on
the podcast, like you guys. Um,
550
00:37:32.920 --> 00:37:37.519
you know that really have like wide
like knowledge base across the whole industry,
551
00:37:37.599 --> 00:37:40.280
both because you guys had your own
companies and you were driving, like
552
00:37:40.360 --> 00:37:44.360
you guys drove, drove, you
know, P and D and trucks,
553
00:37:44.480 --> 00:37:46.159
right. So you just have your
cdls? Or No, no, I
554
00:37:46.199 --> 00:37:51.440
don't have a C but I have
driven on in your own right. So
555
00:37:52.199 --> 00:37:54.480
I had a team of yard hustler
spotters, right, just spotting. So
556
00:37:54.719 --> 00:37:58.920
I had to do all that.
So, anyways, I have done it,
557
00:37:59.719 --> 00:38:05.119
not on the road, though,
the PND. Thirty five trucks and
558
00:38:05.199 --> 00:38:07.039
you know, like show them.
Said, we had at a time,
559
00:38:07.400 --> 00:38:09.119
you know, in peak, we
had over fifty drivers on the road at
560
00:38:09.119 --> 00:38:15.400
a time. So, Um,
and and that that is tough, right.
561
00:38:15.559 --> 00:38:17.800
Having that thirty five, I'll give
you that example, and trying to
562
00:38:19.000 --> 00:38:22.559
like go in full circle when it
comes to retention. Is when you have
563
00:38:22.679 --> 00:38:27.559
thirty five trucks and, you know, overt fifty employees, it's hard to
564
00:38:27.639 --> 00:38:30.559
slow it down when people come in
initially. You've got to try to slow
565
00:38:30.599 --> 00:38:36.159
it down for everybody, Um,
so you're not sending him out with half
566
00:38:36.639 --> 00:38:42.519
you know Um look not having enough
um training when it comes down to it.
567
00:38:42.639 --> 00:38:45.000
So trying to slow it down will
help as well, which you can't
568
00:38:45.039 --> 00:38:47.880
do that in pnd, which is
last model, right, so you can't
569
00:38:47.880 --> 00:38:52.920
do that. Unfortunately. When I
first started, you know, I didn't
570
00:38:52.920 --> 00:38:55.320
think it was gonna be so fast
paced, but it's very fast paced and
571
00:38:55.400 --> 00:39:00.039
it's always calling people. You know, are adding more stops, take in
572
00:39:00.119 --> 00:39:02.599
more stops. All you have to
learn the scanner, so on and so
573
00:39:02.800 --> 00:39:07.000
forth. So there's a lot to
take in. Um and, you know,
574
00:39:07.320 --> 00:39:12.519
drivers and contractors and all all of
them. Feel like you're drinking from
575
00:39:12.559 --> 00:39:17.079
the fire hose and it's very tough, right. I I totally agree.
576
00:39:17.079 --> 00:39:21.840
It's like when I when I first
started on boarding drivers, it was like
577
00:39:21.960 --> 00:39:25.400
it took forever. It's like we're
doing a manual email process. It takes
578
00:39:25.400 --> 00:39:29.760
a month and you're like going back
and forth all the time, and then
579
00:39:29.760 --> 00:39:31.239
you're like man, I could fix
this with some technology, and so then
580
00:39:31.239 --> 00:39:35.360
you fix that and then onboarding goes
down to a week, right, and
581
00:39:35.360 --> 00:39:37.840
you're like Oh, this is great, and then you fix it some more
582
00:39:37.039 --> 00:39:40.239
and you put people in place to
double check everything, and then onboarding goes
583
00:39:40.239 --> 00:39:45.400
onto a day and you're like wait, I can onboard a guy in a
584
00:39:45.519 --> 00:39:47.559
day. And sure enough, like
I started to grow really quickly, but
585
00:39:47.599 --> 00:39:52.800
then I realized my quality was terrible, right. It was just terrible.
586
00:39:52.039 --> 00:39:55.079
Like I like guys, didn't even
know, like Hey, Alex, why
587
00:39:55.079 --> 00:39:59.239
did I get this deduction? Like
I had all of these all these struggles,
588
00:39:59.239 --> 00:40:00.880
like why? Why? How do
you guys handle this situation? What
589
00:40:00.920 --> 00:40:04.239
am I supposed to do here?
I don't know how to secure this.
590
00:40:04.280 --> 00:40:07.559
I don't know where I'm supposed to
go next. I'm not getting into communication
591
00:40:07.639 --> 00:40:10.280
and I'm waking up to the four
or five am call because I'm maybe on
592
00:40:10.320 --> 00:40:14.039
the on the West Coast and the
guy is eight am on the east coast,
593
00:40:14.039 --> 00:40:16.119
and so he like and and like
yeah, it's it's one of those
594
00:40:16.159 --> 00:40:20.000
things. So, Um, you
guys are doing you guys are doing really
595
00:40:20.039 --> 00:40:22.159
good work. so that's that's fantastic. Um. So, if if you're
596
00:40:22.159 --> 00:40:25.519
watching this podcast and you're enjoying the
show, absolutely leave us review. Um,
597
00:40:25.559 --> 00:40:29.559
we appreciate those a lot. But, Um, where can people find
598
00:40:29.559 --> 00:40:31.280
your company to discuss you? Like, what's the best way to reach out
599
00:40:31.280 --> 00:40:36.000
to you? So you could go
on a website, www dot and style
600
00:40:36.480 --> 00:40:39.199
and c I. L. E. Dot Services, and you know that
601
00:40:39.199 --> 00:40:42.639
that's maybe the best way to start. Okay, cool. So I will
602
00:40:42.679 --> 00:40:45.960
make sure to leave your information description
below. Guys, I appreciate you coming
603
00:40:46.000 --> 00:40:50.159
on. Thank you so much and
we'll talk. You know, we'll talk
604
00:40:50.199 --> 00:40:52.280
again soon and we'll just, you
know, see where where the truck industry
605
00:40:52.280 --> 00:40:52.800
goes from here.