Budget planning and compliance is one of the most important jobs at any company. A limited amount of funds is available for each team, and they need to be spent wisely. When working through your plans for hiring drivers, your recruitment budget is a critical piece of that puzzle. But when you step back and look at the process, and what you’re actually spending, maybe now’s a good time for also rethinking your driver recruitment budget.
First things first: do you have a good handle on your actual budget needs? It could be as simple as knowing your turnover rate, your anticipated need for additional drivers above turnover, and then multiply that by your current cost per hire. Simple, right? Could be that easy, but it’s probably a little bit more complex than that if you’re working through this for the first time. Especially when turnover rates keep climbing, and the driver shortage continues to grow. These things impact revenue because trucks are sitting idle, and once revenue decreases, assigned budgets can unexpectedly change at any time.
Cut out what’s not working for you
The best thing to do when looking at your driver recruitment process is to figure out where to cut out waste. Let’s start with the type of drivers your looking to hire. Here you want to be highly strategic in your approach, to attract the perfect candidates. You don’t want to simply generate hundreds of leads only to find out that they don’t meet even half of your qualifications. If that’s what you’re doing, you probably also know the amount of time it’s taking for your team to work that massive pile of ice-cold leads. It might be a good idea to try and find a better place to spend that money. And a better way to use all of those wasted hours.
Using your historical data of what’s worked best, where have you found the best matches? The best retention? Those are the places you want to ensure your recruitment budget is maximized.
Part of any good budgeting strategy is tracking everything related to that budget. You should have at least a simple tracker of costs vs. return on each tactic, best case on a monthly basis (if not weekly). Once you’re sure the low performing tactics are no longer part of your plan, you can work to reallocate those funds to tactics that produce the best matches. Who knows, saving those hours and dollars might allow for improvements in employee benefits or salaries that will make you more competitive down the road.
Stop making the same driver recruitment mistakes
At the end of the day, a recruitment budget shouldn’t be focused strictly on volume. Producing thousands of unqualified leads for your fleet, just bogs you down and creates capacity challenges throughout your day.
Instead, a driver recruitment budget should be focused on making meaningful connections with drivers that you are able to sustain in the long run.
It should be about focusing on spending in areas that will actually produce qualified matches for your fleet, instead of just trying to get warm bodies in your trucks.