The Importance of a Driver Referral Program

Finding good drivers is a challenge for most contractors we’ve met.

The average new hire costs $3,500 in our line of work – including advertising, screening, interviewing and onboarding. And even then, on average annual turnover is about 50%!

But there’s a way to make each new hire cost less, and increase their tenure: referrals.

As owners, we trust our employees with the well-being and image of the company each and every day. Nobody knows the requirements of the job better than the drivers already doing it. That’s what makes them ideal to be on the front lines for recruitment efforts.

A major part of having a proactive recruiting plan is having a defined referral program. People who are referred by company drivers will already have a great understanding of the job’s requirements and more than likely will fit in with the culture and expectations.

According to Forbes, 88% percent of employers say referrals make for the most superior candidates. Additionally, retention rates among referrals are higher, leading to reduced turnover and hiring expenses for your business.

Simply put, if an owner wants to put together a strong team, that owner must have a solid driver referral program in place.

To make your referral program more effective, here are some tips:

1. Determine how much you will pay a driver for a successful referral. (We recommend between $50 and $250 for a hired referral paid after 90 days so you can ensure the new driver is a good fit.)

2. Write out a policy to explain your driver referral program. When will you pay the bonus? How should they submit their referrals?

3. Create materials to make it easy for drivers to tell other people about your open jobs. Flyers, referral cards or a website are all good ways to share your job openings.

4. Ask your drivers for referrals. You will want to do this on a regular basis to keep the program top of mind, especially around peak when you’ll need to hire many drivers and assistants. 

For LRG members, you can order our Employee Referral Card from the portal for your business. We like to have our drivers keep these cards on hand in their trucks and wallets to hand out as they meet good candidates.

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