Staff Remuneration & Turnover

Driver turnover refers to the number of driver changes caused by inability to retain staff for whatever reason. Turnover amongst drivers increases exposure to collisions, through lack of familiarity with equipment, routes and job function. It also increases the cost of recruitment and training, as well as the more indirect costs of inefficient service to customers. One of the more common causes is remuneration, or payment. Therefore, ‘attractive’ pay and conditions for the job function is considered necessary.

Negative Positive
Very high staff turnover i.e. >20% per annum. Driver turnover is minimal i.e. <10% per annum.
There is a direct link between high turnover and below average remuneration for the job function. Payment provided is based on a fixed salary and includes a full benefits package.
No remuneration is provided exclusively on the basis of commission. Management regularly review turnover, compensation, benefits package, vacation policy, work conditions etc.
Performance/sales targets are unrealistic.  

  • Management systems include the need to regularly review turnover, compensation, benefits package, vacation policy, work conditions, etc.
  • Conduct exit interviews with all drivers who may leave your employment in order to determine the reasons for leaving. Incorporate the findings, and any identified trends, in the management review processes relating to the turnover issue.
  • Where commission-based drivers are employed, those rates of compensation should be realistic and attainable.
  • Performance and sales targets should be realistic, and not cause undue pressure on staff.