As The World Churns: The Driver Shortage Myth

by Dave Ashelman

A local Milk & Gasoline hauler in my area recently posted a petition on its website for drivers to voice their objections to the new proposed HOS rules pending in the FMCSA. In the petition it stated that if the new HOS take effect, then it's going to increase the driver shortage for the industry while lowering the paychecks of current drivers. Of course, the petition says nothing about the already low wages of their drivers, or the fact that the company has 130% annual turnover rate.


For both managers and drivers we have all heard about how there's a "driver shortage". However, most trucking companies use "fuzzy math" to justify the claim of a driver shortage instead of looking at their turnover rates. Also, trucking companies have re-defined what every other industry considers "turnover" and "churn" in order to make their raw numbers look better from an HR standpoint. This article will look at how trucking companies have re-defined terms in order to claim a driver shortage to prevent changing the way they do business on the back-end (in the office).

Normal Definitions

After spending 20 years in Human Resource management, I was shocked by the way trucking companies define terms. Let's start with how every other industry in North America defines "turnover" and "churn" according to the Society for Human Resource Management (SHRM).

Turnover is defined simply as people who quit within a year. If I have 100 people in a company, and 10 quit (leaving the company completely) during the year, then I have a 10% turnover rate. It doesn't matter that I hire 10 people to fill their spots, just the act of leaving the company means turnover.

Churn is defined by the number of people I hire to fill vacancies due to attrition. Attrition is when people are promoted, retire, go out on worker's comp or disability, or I fire; any reason other than quitting. If I have a company that has 1000 people, and 50 people are promoted, and I hire 50 people to fill the old spots, then I have a 5% Churn Rate.

My total turnover rate is Turnover plus churn. If I have a 10% turnover rate, and a 5% Churn rate, then my total turnover rate is 15%. This is a normal rate amongst 99% of companies in America. If total turnover reaches above 25% in most industries, then managers usually get fired. This is because it costs a lot of money to fill the vacant position; money in job ads, recruitment, interviews, background checks, and training/orientation.

Churn is difficult to manage. People retire, get sick or are fired all the time. The only way to manage churn is to not fill the open vacancy, usually by eliminating the position. Turnover on the other hand is very easy to manage. There will always be turnover as people leave to go back to school, because of family issues, or they were just offered a better position somewhere else. For most industries, this number hovers around 9%. However, the number of people who leave because they hate the company or their supervisor is something I can manage. Whenever I've interviewed for a position (and something I always recommend to others), one of my first questions is "What is your total turnover rate?" That tells me a lot about a company's dedication to its employees.

How Trucking Re-defines Turnover And Churn

Trucking takes a view on turnover and churn that is almost completely contradictory to industry norms within the Society of Human Resource Management (SHRM).

For trucking, turnover is also defined as people who quit, but these numbers are almost always tossed out and traded for "churn". Ask any recruiter for a company's "turnover rate" and they'll start telling you about "churn" factors.

For trucking, "churn" is simply defined by the number of people that quit to go to other trucking companies, because the "grass might be greener". If people quit to leave the industry entirely, if they quit because of family issues (which includes home time issues), if they are fired, or if they retire, those numbers aren't even considered. There's a myriad of other "classifications" that typically aren't considered in the raw turnover data.

The only purpose I can see of "re-classifying" these numbers is to make them look lower than they really are. One can easily see how these numbers can be skewed with such re-definitions.

Why Data Sets Are Important

For the rest of American industries, it's important for everyone to be counted in total turnover rates. If a lot of people are getting fired, then I want to know where we're going wrong as a management team. If a lot of people are quitting because they're going back to school, I want to know what other industries I'm in competition with. For Managers and Executives, as well as Social Scientists (including Economists) typically the rule is: "The more data, the better". However, in trucking, so much data is excluded there is (for example) no way to know how many people have a CDL but left the industry entirely.

We often hear the ATA (American Trucking Association - an Industry lobby) say that there's a driver shortage. How do they get those numbers? They simply take the amount of freight that they have, versus the number of drivers they have available to move that freight. For example, in 2011 the ATA saw a 4% growth in truckload freight, but only a 1% growth in new drivers, leaving a 3% shortage (according to their math). Multiply that by 13 BILLION tons of freight moved by truck in 2011, and 3% is a lot! It makes sense on the surface, but add in all the data that's not factored in - such as the number of drivers that were drivers but left the industry, or the SHRM measurement of Total Turnover rates, and that 3% shortage could have been more than made up for. Without the data, we'll never know for sure. We can make a "guesstimate" that with most companies sporting over a 100% turnover rate, just reducing the turnover by 3% would make up for the difference.

For the rest of America, Human Resource Managers are made and broken on Total Turnover rates that are defined across industries. In Trucking, there usually isn't even a Human Resources Department. By the Trucking Industry re-defining "churn" and "turnover" in it's own unique ways, then it's not that hard to see how the claims of a "driver shortage" just doesn't add up statistically, at least from the viewpoint of lost potential.


Commercial Driver's License (CDL)

A CDL is required to drive any of the following vehicles:

  • Any combination of vehicles with a gross combined weight rating (GCWR) of 26,001 or more pounds, providing the gross vehicle weight rating (GVWR) of the vehicle being towed is in excess of 10,000 pounds.
  • Any single vehicle with a GVWR of 26,001 or more pounds, or any such vehicle towing another not in excess of 10,000 pounds.
  • Any vehicle, regardless of size, designed to transport 16 or more persons, including the driver.
  • Any vehicle required by federal regulations to be placarded while transporting hazardous materials.


Compliance, Safety, Accountability (CSA)

The CSA is a Federal Motor Carrier Safety Administration (FMCSA) initiative to improve large truck and bus safety and ultimately reduce crashes, injuries, and fatalities that are related to commercial motor vehicle


Federal Motor Carrier Safety Administration

The FMCSA was established within the Department of Transportation on January 1, 2000. Their primary mission is to prevent commercial motor vehicle-related fatalities and injuries.

What Does The FMCSA Do?

  • Commercial Drivers' Licenses
  • Data and Analysis
  • Regulatory Compliance and Enforcement
  • Research and Technology
  • Safety Assistance
  • Support and Information Sharing

Line Haul:

Linehaul drivers will normally run loads from terminal to terminal for LTL (Less than Truckload) companies.

LTL (Less Than Truckload) carriers will have Linehaul drivers and P&D drivers. The P&D drivers will deliver loads locally from the terminal and pick up loads returning them to the terminal. Linehaul drivers will then run truckloads from terminal to terminal.


Dispatcher, Fleet Manager, Driver Manager

The primary person a driver communicates with at his/her company. A dispatcher can play many roles, depending on the company's structure. Dispatchers may assign freight, file requests for home time, relay messages between the driver and management, inform customer service of any delays, change appointment times, and report information to the load planners.


Hours Of Service

HOS refers to the logbook hours of service regulations.
by Brett Aquila

Related Articles:

Keep That License Clean: Your Career Depends On It

by Rhonda

For a truck driver that CDL is everything. Here is some great advice on protecting that license.

Understanding Rights In The Trucking Industry

by Dave Ashelman

What rights do truck drivers have? Here’s a brief overview of some of the common issues drivers face with their bosses, and the remedies they can seek.

The Unexpected Call

by TruckersWife09

Home time is precious to an over the road driver and their family, and it's painful when it gets cut short by an unexpected call from the company.

Rites Of Passage On The Highway

by Dave Ashelman

Many folks come into truck driving believing they should be treated like gold without having to prove themselves first. That's simply not how it works.

A Look In The Mirror

by Brett Aquila

If each truck driver would be a true professional...dress well, work with pride, talk kindly...the American public would respect us once again.

The Story Of Why So Many Rookie Drivers Fail And How To Avoid It

by Brett Aquila

I've watched countless truck driving careers ruined before they ever got off the ground. Here's the story of how it happens and what you can do to avoid it.

You Won't Get Anywhere In Trucking If You Can't Get Along With Your Support Personnel

by Brett Aquila

At TruckingTruth we're always telling you that you control your own destiny in trucking. Well, a big part of that is getting the right people on your side.

How Do I Know If Truck Driving Is For Me?

by Brett Aquila

We've all pondered becoming a truck driver at some point in our lives. But what is it really like? Would it suit me? Here's a great introduction to truck driving.

Bureaucracy And Unfair Expectations Plague Today's Truck Drivers

by Becky Prestwich

The trucking industry has an avalanche of rules and regulations, stereotypes and expectations for truck drivers to deal with. Here's the reality we face.

Is Trucking Worth It Anymore?

by Brett Aquila

The risk, pressure, and sacrifices involved make trucking a tough job but the perks that come along with it are remarkable. Is trucking worth it anymore?

Join Us!

We have an awesome set of tools that will help you understand the trucking industry and prepare for a great start to your trucking career. Not only that, but everything we offer here at TruckingTruth is 100% free - no strings attached! Sign up now and get instant access to our member's section:
High Road Training Program Logo
  • The High Road Training Program
  • The High Road Article Series
  • The Friendliest Trucker's Forum Ever!
  • Email Updates When New Articles Are Posted

Apply For Paid CDL Training Through TruckingTruth

Did you know you can fill out one quick form here on TruckingTruth and apply to several companies at once for paid CDL training? Seriously! The application only takes one minute. You will speak with recruiters today. There is no obligation whatsoever. Learn more and apply here:

Apply For Paid CDL Training

About Us

TruckingTruth was founded by Brett Aquila (that's me!), a 15 year truck driving veteran, in January 2007. After 15 years on the road I wanted to help people understand the trucking industry and everything that came with the career and lifestyle of an over the road trucker. We'll help you make the right choices and prepare for a great start to your trucking career.

Read More

Becoming A Truck Driver

Becoming A Truck Driver is a dream we've all pondered at some point in our lives. We've all wondered if the adventure and challenges of life on the open road would suit us better than the ordinary day to day lives we've always known. At TruckingTruth we'll help you decide if trucking is right for you and help you get your career off to a great start.

Learn More