Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: https://read.dmtmag.com/i/85369
INNOVATOR OF THE YEAR ers 45 cents per mile," says Tom Kretsinger Jr., president and chief operating officer. "The guy that is doing things right is well worth what we pay him." The performance-based pay "The single biggest variable you have is the driver." – AARON THOMPSON, VICE PRESIDENT OF OPERATIONS program has had a positive impact on driver retention during a time when most car- rier turnover rates have risen sharply. In January 2011 when the pro- gram began, annualized turnover was 96.8 percent. One year later, it dropped to 37.6 percent. All about fuel The performance-based pay program has led to a culture shift for ACT's company drivers. "I've talked to more company drivers than independent contractors in the last six months," says Mike Heintz, ACT's maintenance coor- dinator, who also counsels drivers on proper driving habits. "A year ago, that almost never happened." While ACT has seen improve- ments across the board in the five metrics it uses to measure driver performance, it nets the biggest return through fuel savings with improved fuel economy and route compliance. "Before this program came out, I knew how to drive to get good fuel economy, but I wasn't doing it because there really was no reason to, " says John Hanan, com- pany driver. "Now it makes a lot of sense for us to work at it and get good fuel mileage. It has made me more safety-conscious and more conscientious – it's affected me everywhere. I wouldn't want to go back to the old way. " Aaron Thompson, vice presi- dent of operations, says that good equipment spec'ing can net an 8/10-mpg improvement, but a good driver can net up to 3 mpg. "The single biggest variable you have is the driver, " he says. Since implementing the performance-based pay program, ACT has seen an almost 5 percent improvement in overall fuel economy. The fleet average today is about 7.5 mpg, and some of the company's top-performing drivers have averaged better than 8 mpg on a quarterly basis. "There's no reason a driver can't stay in the mid-7 to mid-8 mpg range on a regular basis without even thinking about it," says Heintz. "It's just that no one has ever taken the time to explain to them how to drive the new equipment. Once that's explained to them, they can get 7.5 mpg all day long. It's just taking the time to talk to them, and then it's like a light bulb goes on and they can get it done." In his role as driver counselor, Heintz focuses on taking off from a dead stop, letting cruise control do its job and reducing overall speeds to improve fuel economy. "Six years ago before the first fuel spike, we didn't worry about fuel economy, and we aver- aged 3,000 miles per week," says Heintz, recalling his experience as a driver. "Now that freight is a little slower and fuel prices are high, it's not a 'hurry up and get there' approach, but a 'take your time and get there smartly. ' It's not where you're going, but how you get there – that is what makes 46 COMMERCIAL CARRIER JOURNAL | APRIL 2012 BRINGING 'EM BACK A nother key initiative introduced last year by American Central Transport was its ACTivate Careers Program, a three-phase finishing school designed to address the need for hiring and training qualified drivers. The program specifically targets former drivers returning to the industry that have at least 18 months of over-the-road experience in the last five years and hold a Class A CDL, as well as military veterans with truck driving experience in the last 18 months. All candidates also must meet ACT's stringent driver evaluation standards to enter the program. Drivers in the ACTivate program spend five days in a classroom orientation setting to learn about new truck technology, electronic onboard record- ers and new safety compliance practices before hitting the road with a trainer in one of six specialty "trainer" trucks spec'd with studio sleepers and double bunks. After one or two weeks in the over- the-road training sessions, drivers are seated in a company truck and begin a 60-day proba- tionary period. ACT DEVELOPED AN ONLINE TRAINING TOOL AS PART OF A CONTINUING EDUCATION PROGRAM FOR ITS DRIVERS. "You have to have some refresher training – if you don't use your driving skills every day, you lose them," says John Hanan, ACT company driver and instructor in the ACTivate program. "If you've been out of the industry for a while, a lot has changed." After completing the ACTivate program and remaining with ACT for three months, the driver has the option of staying on as a company driver or converting into a lease-purchase program and becoming an owner-operator. Drivers entering the lease-purchase program are set up with truck leases through ACT's Excel Leasing & Sales and are enrolled in the Excel Business Institute, which teaches the basics of becoming a successful owner- operator, including trip planning, budgeting and tax planning. Last year, 29 drivers completed their leases with ACT through the Excel platform.