The OTR trucking world keeps shifting gears with evolving regulations and increasing market demands. Luckily, the strategies for truck driver retention have also evolved, especially for truck drivers who are independent contractors (ICs). With independent truck drivers and owner-operators in the mix, it’s no surprise that more trucking companies grapple with compliance, operational efficiency, and driver satisfaction challenges.
Here’s how OTR trucking companies can navigate these changes and proactively address driver turnover, focusing on three key strategies transforming the industry.
Truck driver retention through technology
Openforce customers experience up to a 52 percent decrease in driver turnover compared to the industry average in transportation. In addition, each new Openforce customer confirms some combination of reducing costs, managing risks, and eliminating non-strategic tasks—which allows them to shift the focus to their core business, on-time delivery, and servicing clients.
Here are just a few (of the many!) ways Openforce’s technology helps you with truck driver retention:
- Automated onboarding for compliance
In the world of contracting carriers and independent owner-operators, independent contractor compliance remains a linchpin for successful operations. Every day, a new headline thrusts compliance into the spotlight, prompting trucking companies to seek innovative solutions.
Automated onboarding helps you establish compliant relationships with ICs right from the start. Transparent communication, streamlined negotiations, and signed agreements protect you and your drivers from pitfalls. By effectively tracking critical dates and compliance-related tasks, this approach expedites onboarding. It fosters a more compliant and content workforce.
Your drivers get on the road faster, earning income, ultimately leading to reduced turnover rates.
- Optimizing settlement procedures
ICs manage and operate as independent businesses, which means accurate and on-time settlement is critical to their livelihood and the livelihood of their subcontractors.
With Openforce’s settlement solution, trucking companies can allow owner-operators to add comments, make adjustments, and submit invoices for electronic approval and payment. In addition, it enables you to deliver electronic payments to your ICs via direct deposit or debit card.
Automating time-intensive settlement processes frees you to pursue revenue-generating activities while helping ICs get paid timely and accurately. And, with over $3.38 billion in settlements processed annually, you can rest easy knowing your ICs will be paid on time every time.
- Exclusive perks and benefits for owner-operators
One critical advantage during a driver shortage is access to perks and benefits.
But as a contracting company, you cannot legally offer these benefits and perks to ICs. So how can you implement a program that helps retain the best ICs?
Enter Openforce’s IC Retain, designed to keep ICs happy, engaged with your company, and moving your business forward. Here are a few things to keep in mind when considering a benefits program:
- Contracting companies cannot offer benefits, but we can: From settlement advances and affordable health benefits to everyday retail discounts, IC Retain offers ICs the benefits they need that contracting companies cannot provide directly.
- Contracting companies need to retain current ICs: With the ultra-competitive market and the convenience of tech offering opportunities at their fingertips, ICs now have more income-generating options. Contracting companies can’t afford to lose ICs to the Ubers of the world, who are already offering faster pay cycles.
- Contracting companies must attract more ICs: Due to the high demand for quality ICs, recruiting efforts must stand out by offering extra perks.
Openforce internal audits have uncovered that companies utilizing IC Retain have seen as much as three times the retention rate of ICs, compared to the industry average. We’ve developed this program with prominent industry partners to offer benefits to keep 1099 workers engaged long-term and help them thrive as independent business owners.
Over 150,000 ICs in this program have enjoyed the following:
- Discounts on optional insurance from multiple providers (including auto, medical, accident, life, and more)
- Cash advances on settlement funds (our most popular benefit)
- Hundreds of retail and entertainment discounts and cash-back rewards
- A variety of auto savings, 1099 tax help, and business and legal services
By introducing ICs to the Openforce benefits portal, our OTR trucking clients have remained at arm’s length to protect themselves legally but have also realized:
- 52% reduction in contractor turnover
- 3x higher contractor retention
Working with independent contractors can deliver operational effectiveness and cost savings that significantly outweigh the management challenges. However, trucking companies must seek to manage turnover through proactive practices to reduce the burdens on the IC to increase driver retention.
Openforce is well-versed in the challenges and industry-leading technologies for reducing independent contractor turnover. Contact us today to schedule a demo.