The truck driver shortage is a real problem for recruiters. It impacts HR efficiency and creates additional expenses for employers. Increased driver turnover rates are also adding to the problem. These and other hiring challenges can contribute a great deal of expense to any trucking company’s bottom line. But what impact do your actual recruitment efforts cost each year?
Do you know your cost per hire? Do you know if it’s been going up or down over time?
Calculating cost per hire (CPH) is pretty simple math. Add up your total cost for recruiting new drivers, and then divide by the number of drivers ultimately hired. This gives you the cost per hire for ALL your recruiting efforts. (Note that this factors in actual hires, not just leads.) You should keep this number handy, and have yearly goals set to manage it as needed or as budgets change. Once you have determined your cost per hire, you can then make more informed decisions on where to spend your recruiting dollars. Here are 3 ways to lower your cost per hire for CDL drivers.
1. Leverage Past Leads
Every time you need to hire for a new opening, doesn’t mean you need to have a fresh list of candidates to contact. Check in on your existing pool of names and filter or scan for matches to your current job openings.
The dollars spent to generate and capture these leads are already spent, and no additional budget is needed to go back to those lists.
You know that they’ve already been partially vetted if they matched up with prior openings, they might just need to be checked-in for these new opportunities. If you put a little bit of effort into keeping these older leads engaged between new/available job postings, you might have the perfect person sitting in your database already.
2. Reallocate Ineffective Spending
Once you have your total cost per hire calculated, you can further distill that across the different methods you’re using to hire. Online, print, radio, social or agency help all have a cost associated with them.
Take the total of all your recruiting efforts, and then allocate per tactic your company uses. Once you have those smaller totals, divide by the hires made from each tactic. You should be able to rank order these individual costs per hire from highest to lowest. From there, you can make decisions to reallocate funds from higher CPH channels to lower CPH to increase efficiency. This should result in faster hires, at a lower cost. Which is a very good thing.
3. Try Something New
Have you only been relying one or 2 channels to find new drivers? Are you spending an inordinate amount of time on manual processes? Maybe it’s time to try something new!
If you’re recruiting using the same methods you always have, that might be the reason your getting the same results you’ve always gotten.
If you’re struggling to attract and retain the best drivers, that’s probably a good indication to switch things up. Keep your eyes and ears open for new recruiting ideas, and as your budget allows, give something new a try. You might find something that brings in new drivers faster and saves on your cost per hire over time.
Knowing you’ve got a finite budget for recruiting new drivers to your open jobs, it’s important that you’ve got a handle on what your spending to hire each new driver. And of that spend, what tactic(s) are producing actual hires most efficiently. Effectively managing cost per hire, and other key recruitment metrics, will lead to the ultimate success of your hiring process.
These tactics can certainly help decrease your cost per hire and improve your bottom line. However working to reduce your overall driver retention rate is a huge time and money saver over the long run. If you’re ready to start recruiting and hiring for retention, schedule a demo of our platform today.