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3 Ideas for Building a Driver Referral Program

recruit drivers, trucker shortage April 21, 2023/by Reid Smith

To hire the best truck drivers, recruiters need to constantly create a good impression of their carriers. However, there’s only so much you can do as a recruiter to control your brand and reputation. Unfortunately, many advertisements lie, and drivers have good reason not to believe everything that a carrier says about itself. That’s why they’re more likely to listen to other drivers instead. People are more likely to listen to those they trust, and they’re more likely to trust those who are similar to them. The power of peers is so great that people are 4 times more likely to buy a product when referred by a friend. You can harness this power in the trucking industry as well. A potential driver for your fleet is more likely to trust a fellow driver than what you have to say about your fleet.

This is the idea behind creating a driver referral program. Since your reputation as a carrier is going to spread anyway, you may as well use that to your advantage to attract the best candidates.

Research shows that “word of mouth” plays a huge factor for drivers looking for trucking jobs.

According to the 2019 Overdrive Connectivity Report, 26% of company drivers use word of mouth when looking for driving jobs, second only to Internet searches. Meanwhile, it’s the strongest factor for owner-operators, who look to it 39% of the time. A driver referral program will help you harness the power of word-of-mouth and use your company reputation to bring the strongest drivers to your fleet. Here are 3 tips to create a strong referral program.

1. Build advocates

As we mentioned, drivers are already speaking to each other about your carrier. Your company already has a reputation, and you can’t override it by a referral program. Either your drivers believe you have a strong company and culture that values them, or they don’t. You can’t magically change their opinion by using incentives, but you can encourage them to share their opinions with other drivers.

Offering incentives nudges your drivers to make referrals they already believe in.

It just adds the extra benefit that it won’t slip their mind between a busy job and personal life. If drivers already believe in the strength of your company, you’re really building them as advocates for your company, and not simply as referrals.

2. Structure incentives

Many companies use incentives to nudge drivers into making referrals. Most of these incentives are monetary rewards, although they don’t have to be. As we learned in high school economics class, incentives matter.

You have to make sure you’re offering the right incentives, and that they are influencing behavior in ways you want them to.

If you’re offering a vinyl record player as an incentive and all your drivers use MP3 files for their music, you aren’t going to get any referrals even if everyone loves your company! Make the referral worth it for your drivers. If you’re offering a monetary reward, there are different ways to distribute it. For example, a $500 referral bonus can be spaced out- $250 when the referred driver gets their first run completed and another $250 when they’ve been with the company for 60 days. Often the incentive doesn’t begin until the new driver has already joined the fleet. Driver benefits like extra paid vacation time are other referral rewards which many drivers will covet. Find the right incentive structure and distribution mechanism that works for your company!

3. Build Your Budget

It’s easy to think of referral programs as a waste of money if you haven’t used them before or measured their impact. Try to think of driver referrals as an investment into your recruiting budget. The hire you make from a referral program will help you gain back the amount you spent on the incentive or reward. In fact, you can measure the impact of your referral program and calculate the return on investment. If you’re doing it well then you make a significant number of hires which more than account for the budget spent on the referral program. Consider these budgetary issues when structuring your referral program.

If your program is losing more money than gaining, you need to seriously re-think your entire driver referral program.

Which incentives aren’t working? Should the monetary reward be greater? Maybe the rewards need to be spread out more or be delivered only after you’ve converted leads to hires. Don’t forget to account for the hundreds of dollars being wasted on trucks sitting idle in your lot. Investing in a driver referral program might a way to end that loss of value.

Comprehensive CDL Recruitment Solutions

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5 Reasons Your Company Receives Truck Driver Referrals

recruit drivers December 6, 2021/by Reid Smith

Drivers are more likely to believe what a fellow driver says about a company than what the company itself says. That’s why truck driver referrals are so important when it comes to your company’s recruiting efforts.

It’s been shown that across all industries, hires that come from referrals lead to greater job satisfaction and longer employee retention. And specifically in the trucking industry, referrals are shown to be even more important.

According to Randall-Reilly’s Trucker News Connectivity Report, 26% of drivers rely on word-of-mouth when looking for a new job. While it doesn’t beat out the internet, that’s still a huge segment of drivers your company may be missing out on.

We spoke with Tim Yochum, Director of Recruiting of Drive My Way’s client, Foodliner. He spoke to us about the importance of referrals and how Foodliner secures them.

Why are referrals a key part of your driver recruiting efforts?

Referrals are usually more experienced drivers who enjoy having a connection with someone at the company. Many times, they’re passive candidates who aren’t actively searching for a new job. They become interested when a current driver speaks positively about their Foodliner experience. The length of employment for referrals is much longer than a non-referred driver. Our people know the job expectations and they look for referrals that will be a good match.

What are the top reasons your current drivers refer other drivers to your company?

Pay, Benefits, Home Time, Quality of Equipment, and Equipment Maintenance.

Do you have a referral bonus or a referral incentive that encourages referrals?

We offer an $8,000 Referral Bonus paid out in 3 installments during the first year.

Out of all the drivers you recruit on a yearly basis, what is the estimated percentage of drivers who find your company based on a referral?

Close to 20% of our new driver hires are referrals.

So, how does your company get these all-important referrals just like Foodliner has?

1. Create a Structured Referral Program

Creating a structured program is the first and most important step in bringing referrals in on a consistent basis. A referral program is where you offer current employees a monetary bonus or gift, in exchange for bringing in qualified new hires to the company.

Consider a scaled system, where the more hires a driver brings in, the more money they receive each time. Giving half the bonus at the time of hire and the rest when the new driver has completed x number of days is another tactic companies have used that helps with retention.

2. Advertise

A referral program doesn’t do much if drivers aren’t aware it exists. Making the program well-known throughout the company is almost as important as the program itself. When it comes to advertising, the more mediums you use, the better. One company-wide email probably won’t yield the kind of results you’re looking for.

Hanging flyers in the office, terminal, and break room, is a good start, but the best way to get the word out is to make sure that the program is consistently communicated from managers to drivers in multiple formats. This includes face-to-face conversations, email, text, phone calls, etc. Once the program has been ongoing for a while, try highlighting drivers who have already taken advantage of it. Showing that drivers in the company have had success with the program may urge others to do the same.

3. Offer Benefits that Drivers Want

truck driver referrals No matter how great your referral program is, drivers won’t participate if they don’t believe what they’re selling. Talk to your current drivers about what they enjoy most about your company, and what would make it better. More PTO, home time, and performance-based bonuses are common answers. Showing that the company is making an active effort to improve the quality of driver’s work life will improve morale and make drivers more likely to refer your company.

4. Provide Training and Education Resources

More and more drivers are looking to join companies where they’ll be able to grow and move into other roles, possibly non-driving positions and even management. This is why Training and advancement programs are another great way to increase referrals. Once a driver moves into a new role within your organization, their referral would go a long way in bringing drivers on board who are looking for the same opportunities. Even if some drivers aren’t interested, just giving them the option shows them that their employer is committed to their growth.

5. Be Honest with Job Seekers

After a driver has been referred and begins the interview process, be upfront about aspects of the job that aren’t a selling point, like when benefits start, possible night and weekend work. You may think that communicating these parts of the job might make the job less desirable, but many times it’s not. Drivers understand that not every position is going to meet all their wants. Drivers appreciate this honestly and will let that be known to other drivers when it’s time for them to refer someone else.

When it comes to driver recruiting, consistent and quality referrals can be the thing that sets your company apart. The good news is that there’s no secret or hidden trick to bringing them in. Creating a structured referral program, sticking to it and listening to your current drivers is all you need to bring in those all-important truck driver referrals.

FREE RESOURCE

Truck Driver Incentive Program Checklist

The best incentive program is the one that’s effective, sustainable, and engaging for drivers. Use this checklist to align your target behavior with rewards that motivate your drivers and create a program with lasting impact.

How to Recruit Truck Drivers for a Small Company

engage drivers, Personal, recruit drivers February 12, 2020/by Cindy Slanoc

Truck drivers are being recruited constantly for open jobs. Large carriers (with potentially equally large recruiting budgets) can be out there closing the best drivers quickly. Lots of advertising, flashy recruiting tactics, and rooms full of people working could make it seem hard to compete. But what seems like an advantage to the bigger carriers could be a bigger advantage to a smaller trucking company. Being a small company doesn’t mean you can’t compete for the best drivers out there, but it does mean you need to develop a solid recruitment strategy to compete well. Let’s look at how to recruit truck drivers for a small company.

Use Your Strengths to Recruit Truck Drivers

Determine what differentiates your fleet and lean into it. Take the time to think about your strengths and get to the core of why a driver would want to work for you. Consider the key things like pay, benefits, and routes. But also think about your close-knit environment, the value placed on work-life balance, and the genuinely great non-tangibles that only you can provide.

What’s your company’s unique value proposition? What sets your company and culture apart from the rest? Why do your drivers want to work for you? Why do they stay?

Herein lies the answers to how to position your company, and drive that point across all your messaging to recruit truck drivers. Once you can highlight the ways you stand out from other carriers, it’s easier to connect with the best-fit drivers. Work through these questions and develop the key messages that you want to hone in on in all of your postings.

Implement a Referral System

There are not enough hands to follow several job board postings and keep up with everything else. You can start by creating a referral program. Use your current employees to generate quality leads for you. Include your extended personal and professional networks as well. Let these people know you’re looking for new drivers and see who they know who fit your open jobs. Consider including an incentive program for referrals as a tactic when working to generate referrals. That puts some skin-in-the-game for your network too.

Candidates who come in through these referrals usually have a more accurate picture of the company than those who come in through ads, and in most cases employees recommend people they think will be a good match. —The Wall Street Journal

Connect Personally with Each Lead

Put the quality of your efforts into whatever quantity of leads you generate. Each lead is a real person who is looking for a job. They found your company to be a good fit for them based on what they read. Be sure you take the time to connect personally with each lead. And do it quickly.

Be personal in your interactions and don’t make them feel like a number. That personal connection is another best practice to recruit truck drivers.

Any small company needs to think a little bit differently than a larger company. There’s less hands to do the work, and often the small staff must wear many hats within the team. That can be a good thing when developing a company culture. It leads to closer relationships, and better communication. And this small team can be mighty if using the right tools to recruit truck drivers.

Ultimate Guide to Truck Driver Recruiting

Current ways of recruiting truck drivers just don’t work anymore. That’s because recruiting isn’t a transaction. This ultimate guide helps carriers recruit for retention.