Game Changer 2018 Part 1

GA CH ME AN GE RS

The fleet executive’s guide to growth, technology and maintenance practices that set you apart from the pack

Brought to you by the editors of Newcom Trucking Group, in partnership with Imperial Oil Limited

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2 FAST FORWARD

©2018 Exxon Mobil Corporation. Mobil, Delvac and Delvac 1 are trademarks or registered trademarks of Exxon Mobil Corporation or one of its subsidiaries.

Imperial Oil, licensee. Imperial and the star design are trademarks of Imperial Oil. Other trademarks shown are property of their respective owners.

Your bottom line doesn’t care if it’s cold.

in this issue 4 6

THEY’RE KEEPERS: The trucking industry in North America today is desperate for new blood. Statistics show that by 2020 the Canadian trucking industry will be short between 25,000-33,000 drivers. The saying goes, “a good defense is the best offence,” and the same rings true in human resources. A good retention strategy is the best recruitment strategy. How to keep the employees you have, and retain their institutional skills and knowledge.

T:10.75”

WELCOME ON-BOARD: There is a good reason why recruiters agonize over the hiring of a new driver. The person at the wheel will be the face of the business and the means of moving freight from Point A to Point B. But all too often, the process comes to an abrupt end with a toss of the keys and a passing comment to “be careful”. From the fleets that have it down to a science, here are the secrets to an effective onboarding strategy for new hires.

B:11.25”

S:9.875”

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TALKING ‘BOUT A NEW GENERATION: The image of the truck driver has gone unchanged for decades. Trucking has a diversity problem that it needs to change, and fast. Only 3% of drivers and technicians are women, despite women being close to half of the nation’s workforce. Only 12% of Canada’s truck drivers are younger than 30 years old, while 46% of the country’s Indigenous population is under 24. These are untapped groups that trucking needs to recruit from if it wants to thrive and combat the driver and technician shortage. Read how to reach out to these largely untapped demographic groups – and how to recruit their members.

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INSIDE THE NUMBERS: Your thoughts on driver training.

WELCOME TO GAME CHANGERS S ince the Great Recession of 2008, Canadian motor carriers have hoped for the Great Recovery. For almost a decade that eluded them as a slow growing economy kept freight volumes modest and freight rates depressed. That changed significantly over the past year. A booming economy south of the border, improving oil pricing and consumer confidence have coalesced to drive a strengthening economy, tighter capacity and the first significant rate increases in a decade. But a strong economy presents its own set of challenges. The driver shortage is back with a vengeance, for example.

How can motor carriers seize the opportunities presented by a strengthening economy to grow their operations, improve their bottom lines and create separation from competitors? Welcome to Game

Changers, a series of three digital supplements focused on managing human resources, technology and maintenance issues while continuing to grow.

I hope you enjoy reading the first installment in the series and please look for the next two installments coming later this Fall. I also encourage you to turn to the special Knowledge Centre entitled Game Changers on www.trucknews.com for more news stories, features and videos on the subject. Finally watch for our webinar coming in November.

All these projects would not be possible without Imperial Oil Limited and I would like to thank them for their support and thought leadership.

Lou Smyrlis Managing Director, Newcom Trucking and Supply Chain Group

All trademarks used herein are trademarks or registered trademarks of Exxon Mobil Corporation or one of its subsidiaries. Imperial Oil, licensee.

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3

HOW FLEETS ARE IDENTIFYING UNTAPPED DEMOGRAPHIC GROUPS AND RECRUITING THEIR MEMBERS

TALKING ’BOUT A NEW GENERATION T

he image of the truck driver has gone unchanged for decades.

Trucking has a diversity problem that it needs to

change, and fast. Only 3% of drivers and technicians are women, despite women being close to half of the nation’s workforce. Only 12% of Canada’s truck drivers are younger

4 GAME CHANGERS

than 30 years old, while 46% of the country’s Indigenous population is under 24.

These are untapped groups that trucking needs to recruit from if it wants to thrive and combat the driver shortage, according to experts.

“The Canadian workforce generally is getting more diverse,

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BY SONIA STRA FACE

and as a society we are more diverse,” says Angela Splinter, CEO training experience, with one quarter of the training with of Trucking HR Canada. “As such, our workplaces need to reflect Super-B trailers. that, and there are growing demographic groups that we need “Since September 2017, we have put five candidates through to tap into more. Indigenous peoples are the fastest growing the program,” she says. “Three are still with us and doing demographic in Canada right now. We know that they’re largely extremely well. And as a matter of fact, one of them wants to underrepresented in trucking. We need to find ways to bridge be a driver mentor.” The other two drivers who went through the gap and find some opportunities to reach out to that group. the program are no longer with Arrow, after they decided that We also know that women are still largely the territory Arrow operates in was not for underrepresented in our industry, not just them, Savage said. as drivers and technicians, which we know is “But that’s okay because we still view that quite low at 3%. However, even in manageas a success, because that’s two more Class 1 Our philosophy is to be as open to any ment level positions women are still largely drivers that will potentially go to other jobs, candidates as possible. which increases the driver pool in the indusunderrepresented. We need to do more to During the hiring reach out to women in particular.” try. And right now, we’ve got another candiprocess, we don’t According to a Trucking HR Canada busidate going through the program.” look at age, gender, ness case for diversity in trucking, the benThe short-term goal for Arrow is to race, whether they efits of a diverse workplace include fewer have at least 10 Indigenous candidates go are handicapped or worker shortages, better retention and not. For us, it’s about through the program each year. lower turnover, better employee health, quality. We look at their “They’re local. They live here. They want to better productivity, and better branding. skills. We look at what be here,” says Savage, on why Arrow is comLuckily, fleets are recognizing this, and they can bring to the mitted to tapping into the Indigenous popsome are even seeing the many benefits ulation. “One of the risks going with a forcompany. hiring outside of one pool has realized and eign worker is getting them to adapt to the are identifying diversity as one of their culture and assimilated. It’s certainly a risk. competitive advantages.

Why wouldn’t we? Indigenous Peoples live – KAMILIA BAROUDI, One fleet in particular that has been lookhere. And certainly, from a stakeholder perDIRECTOR OF HUMAN RESOURCES AT XTL ing into hiring more Indigenous peoples is spective, I think there’s a greater chance of Arrow Transportation Systems, based out of success. Because we have the bands involved, B.C. Last September the company came together to create the ASET holders involved. So, it’s got a great chance for success.

Arrow Transportation Systems and Indigenous Peoples Driver We’re not going to survive as an industry unless we become more Training Program. The program builds relationships between diverse. The Indigenous community is the fastest growing popthe company and Indigenous groups while developing qualified ulation in Canada so it just makes sense to look outside of what drivers for full-time employment. was easy or what the standard was.”

“A few years ago, companies were applying for foreign workDuring last year’s Trucking HR Canada’s awards gala, XTL ers,” explained Lisa Savage, the director of human resources Transport took home an award for its achievement of excelat Arrow. “And no matter which way you slice it, it’s all very lence in workplace diversity. Thirty per cent of XTL’s executive costly. By the time you apply and bring a foreign worker into group is comprised of women, and it thrives on the belief that Canada it’s probably between $15,000 and $20,000. So, just when it comes to hiring, quality is the most important factor. looking at it from those perspectives, it made sense to us to “Our philosophy is to be as open to any candidates as possiuse whatever funds we had for recruitment and focus on folks ble,” explains Kamilia Baroudi, director of human resources at that are already here and looking for employment. And quite XTL. “During the hiring process, we don’t look at age, gender, frankly, it was a gentleman at Arrow, Kevin Gayfer, who just race, whether they are handicapped or not. For us, it’s about really spearheaded this. He was working closely with one of the quality. We look at their skills. We look at what they can bring (Indigenous) bands and he asked ‘Why aren’t we hiring your to the company.” members as drivers? Let’s put a training program together.’”

Baroudi adds that having so many female executives at the The program works together with a number of stakeholders, helm is creating a positive domino effect in the office. including the band, Aboriginals Skills and Employment Train“I’ve noticed that having so many women in XTL, has just ing (ASET) holders, a local driving school, and candidates. The helped recruit other women,” she says. “People are really happy ASET holders are responsible for assisting and providing directo talk to women and to be managed by women. We have a few tion to band members about the skills and training required to women drivers and they’re really happy to refer women for us. get into a certain profession.

XTL is very diverse and we want to make sure we stay that way Today, the training program includes 100 hours of driver for years to come.”

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5

BY SON IA STR A FAC E

THEY’RE

KEEPERS

How to keep the employees you have

T

he saying goes, “a good defense is the best offence,” and the same rings true in human resources.

A good retention strategy is the best recruitment

strategy, at least, according to the experts in trucking, where keeping drivers is just as, if not more, important than hiring new ones.

The trucking industry in North America today is desperate for new blood. Statistics show that by 2020 the Canadian trucking industry will be short between 25,000-33,000 drivers. And in the U.S. projections are even more unsettling.

And finally, it seems like many companies in the industry are taking the shortage seriously and trying any way they can to keep their existing employees happy.

“Retention right now is absolutely essential and having a strong focus on retention is very important,” Angela Splinter, CEO of Trucking HR Canada says.

She cites fair pay as one of the most important best practices a fleet can do to ensure drivers stick around.

“Compensation is a big one when it comes to retention,” she says. “You want to make sure you are competitive in the marketplace. And it goes beyond pay. You want to look at the other perks you can give employees, like health benefits, pension contributions, RRSP-matching programs; we’re also seeing an increase in health and wellness programs.”

But more important than pay, says Splinter, is actually finding out from your existing employees what they want.

“You want to look at what your employees will value most, as well as having open communications with them,” she explains.

“Ask what they want. Is it more vacation time? More salary?

Flexible work arrangements? Health benefits? Make sure

6 GAME CHANGERS

you’re in tune with what their needs are, so you can respond appropriately.”

Bison Transport takes this approach seriously, according to its manager of safety, Stephanie Fensom. To date, close to 20% of Bison’s employees have been with the company for 10 or more years.

“Retention is crucial, and for us, it starts at the fundamental of, do we know our drivers?” she says. “We find that our drivers really want a healthy work-life balance and so, in response, we have a variety of work options available to them. I look at our fleet 15 years ago and we were selling to them being gone seven to 10 days at a time. And now we’re down to five to seven days. We have to continue to look at how our network works and what our drivers need to find that balance for them.

But at the same time, give them consistent pay and consistent miles. Because home time is only good if they can put food on the table. We understand the importance of knowing what our employees are looking for. Because if you know what they are looking for, be it financial or home time, you can look at what freight options you have to make it work.”

Fensom also explained Bison has the ability to transition people slowly into retirement or adjust routes according to lifestyle.

“We have the ability to adjust routes so people can retire, or be home more when their kids are younger,” she explains.

“They can work seven days on and seven days off, or have a mix of 15 days across the month. Whatever works for them, we try to give them that flexibility instead of having them work elsewhere.”

XTL Transport actually has a retention committee that

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When you retain your

drivers, that’s the only said I found shocking. They said, ‘Today, if identifies employees that could potentially way you can move your there is a driver leaving our company, this leave the company. business and programs exit is treated like a major accident.’ So “About two years ago we created the forward.

That’s how retention committee,” explained the that just shows the importance that fleets you’re able to build a company’s director of human resources, are putting on retention right now.” safety culture, and a Kamilia Baroudi. “How it works is, let’s say At Bandstra Transportation Systems, a family culture. a dispatcher is not happy with a driver’s for-hire carrier in B.C., retention efforts performance; we created the committee are vast. so that we could have a space to talk about “We put a focus on drivers with seniorit. We discuss with safety, maintenance, ity,” president Phil Bandstra said. “So, – STEPHANIE FENSON, HR, operations, so that we can reach an drivers who have been with the company MANAGER OF SAFETY, BISON TRANSPORT outcome together and help the driver out the longest get preferred routes. But we instead of simply terminating him.” like to be flexible with drivers, because some guys like to go to Sometimes, Baroudi explained, someone will flag a driver the same place five days a week, other people like to explore who has been making less money over a period of time. the world. So we ask them.”

“Because that can indicate this driver may be thinking of Bandstra also conducts yearly surveys for drivers and has leaving,” she said. “So, we discuss it with operations, and ask annual driver meetings to ask drivers things like how they’re what happened for this change in pay? Was there less work? doing, what’s on their mind, and what sorts of changes they Was his truck broken down? We ask all of those things. We want to see in their job. The company also hosts many social investigate. We sit down with the drivers and ask what they events for its employees and provides uniforms for drivers. need. Maybe it’s training, maybe it’s mentorship - but we no At the end of the day, according to Bison’s Fensom, if you’re longer terminate for incidents. Especially with the shortage of not retaining your drivers, you can’t expect to do much else drivers, we try to retain everyone. If you have good employees, with your business. you should keep them. You should listen to them.”

“When you retain your drivers, that’s the only way you can Splinter said companies are so focused on keeping drivers move your business and programs forward,” she says. “That today, that some are even treating a driver that leaves like a way, you can continue to build on the base of drivers you have major road incident. instead of continuing to start at the beginning. That’s how “Retention is such an important focus today for fleets,” she you’re able to build a safety culture, and a family culture, so says. “We just conducted roundtables with fleets across the you really need that base of keeping those drivers you have country, and we were talking with one fleet and what they around for the longhaul.”

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7

BY J OH N G . S M I T H

GETTING ONBOARD T

here is a good reason why recruiters agonize over the

hiring of a new driver. The person at the wheel will

be the face of the business and the means of mov ing freight from Point A to Point B. It’s why formal recruiting efforts are anchored in everything from road tests to abstract reviews, reference checks, interviews, criminal background checks and drug screening.

But all too often, the process comes to an abrupt end with a toss of the keys; a passing comment to “be careful”.

8 GAME CHANGERS

“As an industry – and I’m sure we’re all guilty of it – we spend a lot of time doing driver orientation. We haven’t spent a lot of time doing driver onboarding,” says Geoff Topping, vice-president of human resources at Challenger Motor Freight. The focus of traditional orientation programs, for example, tends to be on matters like the rules that govern hours of service or the transportation of dangerous goods, he explains. “Onboarding is part of something bigger.”

When working as designed, an onboarding program delivers

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Preparing a new driver means more than tossing them the keys

As an industry – and I’m sure we’re all guilty of it – we spend a lot of time doing driver orientation. We haven’t spent a lot of time doing driver onboarding. Onboarding is part of something bigger.

– GEOFF TOPPING, VICE-PRESIDENT OF HUMAN RESOURCES AT CHALLENGER MOTOR FREIGHT.

the fleet-specific information and guidance that could mean the difference between a lasting working relationship and the frustrations that can cause someone to quit before they’ve barely had the chance to warm a driver’s seat.

There is certainly plenty of unique information for a new hire to absorb, even if they’ve worked in the trucking industry before.

Every fleet has a different way of doing business. Equipment spec’s, for example can vary from one company to the next, and then there are the internal practices that affect everything from pay schedules to dispatching and individual customer demands.

Even the layout of a yard can seem confusing.

New drivers at Challenger, no matter what experience they already have, can all expect some level of extra training before any wheels begin to turn. Those emerging from a driving school will receive a six-week finishing program, while those who have one to five years of experience might be fed into a shorter “polishing” program that focuses on specific skills.

Self-directed online training through Carriers Edge covers topics including defensive driving and fatigue management that may not have been absorbed from past employers. Other drivers might get commodity-specific training on topics such as food safety for Hazard Analysis and Critical Control Points (HACCP) designations.

But everyone also receives a paid four-day orientation program that covers every aspect of fleet life.

Some of the latter presentations involve gathering information about payroll processes and benefits, but it goes beyond that. Members of the shop team come forward to discuss how everyone can work together to keep equipment in good repair, while other training addresses how to use the Qualcomm communications systems. Bulk, van and reefer drivers also sit side by side as they hear about the different divisions and how to work with dispatchers.

“It gives them a chance to see the other divisions,” Topping says, referring to the added exposure. Some details may not apply to a driver right away, but they make a difference if someone begins to think about other career options. “We like them to have the whole spectrum.”

Fortigo, a dedicated contract carrier based in Etobicoke, Ont., focuses on safety-related topics during its two-day class-

room session for every new driver. That covers defensive driving, space management, and hours of service, as well as certification for the transportation of dangerous goods, says Peter Karellas, the fleet’s senior vice-president of risk and resources.

It’s during these sessions that newly hired personnel will also learn how to fill out a variety of paperwork, including log sheets (until electronic logging devices are mandated), trip sheets, and proof of delivery documents.

As a dedicated contract carrier, some of the required information will be unique to different clients. One customer in the chemical sector, for example, requires trip sheets to record weights and individual pieces, all of which is tied to key performance indicators. So, too, is there unique information when it comes to handling empty totes, drums and containers.

From there, Fortigo drivers are immersed in the workings of an in-house transportation management system that requires drivers to record starts, deliveries, arrivals, and departure times while on the road. All that feeds a portal which delivers information to customers. Meanwhile, the orientation shows everyone around premises and the fleet yard, introducing other team members including dispatchers and accounting personnel.

“When they get their first pay statement, we actually arrange to sit down with them and review that statement with them,” Karellas adds. “The volumes go up and down in this business, and when you hire somebody, his concern is if he’s going to make decent hours. We try to encourage them along and explain the situation to them until they get a good feel for the work they do.”

The follow-up

Still, onboarding programs can extend well beyond the first payload or paycheque.

“Every month in the first year is critical,” Topping says, referring to the critical period in the retention process. “Three months is a magic number for sure.”

It’s why about 45 Challenger employees serve as personal connections to new hires over the first six months on the job. It doesn’t matter if a question involves payroll, safety procedures, or satellite messaging, Topping says, offering examples of what can be discussed. If the connections can’t answer questions themselves, an email group has been set up so they can reach

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9

>

The younger generation needs a little bit more interaction.

They need to understand why what they’re doing is important.

– RYAN TILLEY, TANDET GROUP’S DIRECTOR OF TRANSPORTATION SERVICES

out to find peers who have the information.

Participants also actively engage the drivers they’ve been assigned to, reaching out at least once a month for the first three months.

“It’s been extremely successful,” says Topping, who is currently connected to a bulk transportation driver. “This program has saved people because they just felt they didn’t know who to talk to.”

The personal connections are important because of the volume of information that’s shared during a typical onboarding process, he says.

Challenger isn’t alone in the approach.

Fortigo relies on its Top 10 drivers and other managers to serve as one-on-one mentors for the first three months someone is on the job. They check in daily for the first week, and every other day in the week after that. The calls shift to weekly at that point.

The mentors have all been on the job three to four years, and they include people who have worked in different areas of the business, from van trailers to flatbeds and Moffett truckmounted forklifts.

“We want to make this new guy feel as comfortable as possible,” Karellas says. “It has made a difference, and you can see it in our retention numbers.”

That’s been especially true when it comes to the first 90 days on the job, a critical time when new hires seem to decide whether they want to stay or look for another job. Before the program was introduced, about 7% of new hires were lost. The losses now sit below 2% today.

“What they’re looking for is support, and they’re looking for people who care and the people who can help them solve problems,” Karellas says.

Reaching out

“The most important factor in hiring and onboarding a driver is the ‘after’, not the ‘before,’” agrees Ryan Tilley, Tandet Group’s director of transportation services. The company has even rolled out an app, known as Driver Engage, that will help to keep office teams and drivers connected.

It was initially meant as a tool to store information about qualifications, training records, and personal contact information. But the idea quickly evolved into more than that. “It will become a central point of contact for the driver, where he

10 GAME CHANGERS

can submit questions for [things like] payroll information and there will be a series of follow-ups,” Tilley says.

It’s especially expected to resonate with millennial-aged hires.

“The younger generation needs a little bit more interaction,” he explains, noting how the demographic tends to want to see how their work fits into a bigger picture. “They need to understand why what they’re doing is important.”

He also hopes it will help to address early concerns that would otherwise be left to fester.

“I always find the driver has so much time to sit there and think about this one scenario or multiple scenarios that happened to them. And then it gets to a boiling point,” Tilley says.

Tandet’s plan is to regularly engage new drivers through the app for the first three months on the job, and continue the connections quarterly after that.

“In our industry, because we run predominantly tankers … we get a lot more turnover in that first 90-day window,” Tilley says, noting how retention rates tend to rise after that time period. “It’s such a different drive and not all candidates will make it through that training window.”

Challenger is even reaching beyond the drivers themselves.

This January, the fleet committed to sending information packages to each new employee’s family members. There’s a welcome letter from the division manager, and pictures of team members including driver managers, safety managers and more. “That package doesn’t get handed to them. It arrives at their house,” Topping stresses. There’s contact information for the times when families need to reach out to drivers in an emergency, and the details about discounts available through local businesses like Good Life Fitness and nearby restaurants.

The ideas emerged when Topping reached out to the University of Waterloo, stressing the value of studying factors that affect the driver shortage. Eight doctoral students surveyed and met with fleet drivers, operations teams and recruiters alike, and also pored over the results of a driver engagement survey. They were the ones who identified the value in discussing a company’s mission, vision, values and benefits when someone is first hired. And they realized that much of the onboarding information is needed to secure buy-in from a new employee’s family.

“It’s addressed to those people,” Topping says. “It’s ‘Welcome to the Challenger family. We want to make sure you’re aware of all the things we can do for you.’”

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Pu se Reader Survey Tell us your thoughts on ... HR Issues There’s a labor shortage in trucking and it’s at the top of everyone’s mind. While the industry tries to figure out how best to recruit and retain employees, we asked readers about the HR situations at their companies.

Do you feel the turnover rate at your company is high?

YES

37

%

NO

63

%

Is your company having trouble keeping or hiring any of the following? (Check all that apply) 53% Drivers 25% I’m not having trouble

keeping/hiring employees 22% Truck technicians/mechanics 14% Other 14% Trailer technicians/mechanics 10% Dispatchers 2% Administrative support 8% Dock workers 4% Managers 2% Salespeople

What would someone need to offer to make you consider leaving your current job? (Pick up to five) 58% More money 33% Different hours/schedule 29% Retirement “Not being out 17% A bigger say in day-to-day decisions 30-plus days 17% Location (ie closer to home) at a time” 15% Other 13% Nothing “Career “No 12% Different lanes/customers change” forced 12% Reduced monitoring dispatch”

(ie ELDs, driver-facing cameras, etc.)

10% Chance to use newer/different technology 10% Different managers 6% Chance to use newer/different trucks

Have you left or considered leaving your job in the last 12 months?

NO, and I wouldn’t consider leaving

42

%

NO, but I would leave for the right reasons

20

%

YES

38

%

Why do you think it’s hard to hire/keep employees right now? (Check all that apply) 60% Long hours 56% Low pay 52% Increasing regulatory requirements 50% Poor trucking industry perception 46% Low benefits 38% Aging workforce approaching retirement 25% Not welcoming to younger workers 19% Other 8% Not welcoming to diverse groups 4% I don’t know Results are rounded to the nearest 1/10th percent.

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11

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© 2018 ExxonMobil. All trademarks used herein are trademarks or registered trademarks of Exxon Mobil Corporation or one of its subsidiaries. Imperial Oil, licensee.