Sometimes it can seem like the final mile industry is a revolving door of jumpers, drivers, package handlers, and even managers. The rate at which employees leave the workplace and are subsequently replaced is called “turnover.”
Turnover is an important value to calculate for your business, as it can help you prepare for hiring and recruiting, and also gives you an idea of how satisfied your employees are with their jobs.
HIGH TURNOVER = HIGH COSTS
A company with high turnover rates is usually an indicator of low employee satisfaction. Companies like these must invest a lot more time, money, staff and other resources into hiring and recruiting in order to stay fully staffed.
“If the turnover rate was reduced, all those resources could be used in other parts of the company.
A LOSING BATTLE
It is no secret that package handlers have a high turnover rate. Odds are, every day you walk into your station, you will see several new package handlers in training, who are there to replace the package handlers who will inevitably soon be leaving the job. Some stations have reported a turnover rate of over 200% for their package handlers!
High turnover rates leads to pouring a seemingly-endless amount of time and resources into training new employees. It takes at least a month to fully bring on board and train a new driver, and if those drivers are leaving within a few months anyway, your company is fighting a losing battle.
Staying on top of this attrition rate is essential for your staffing. If your company is not able to maintain interviewing, hiring, and training a good amount of drivers, you are bound to fail.
Once you determine your company’s turnover rate, you are able to find out how many drivers you should be hiring per month.
Determining your turnover rate is not only valuable, but it’s as easy as inputting a few numbers into our versatile spreadsheet, found here. Not only will you be able to calculate your company’s turnover rate on this spreadsheet, but also how many drivers you should be hiring to remain fully staffed.
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