Spring 2016 issue of Horizons

TRANSPORTATION & DEALERSHIPS

How Dealerships and Trucking Companies Hire and Retain Talent by Aaron Pollard, CPA, CGMA

M ost of those in the transportation and dealership industries had a positive 2015, with a good majority witnessing record-breaking years. Car dealerships witnessed historic sales volume industry wide, while over-the-road trucking companies witnessed increased shipments while also benefiting from cheaper fuel rates. While the entire year was positive, the fourth quarter of 2015 seemed to be the beginning of a slowdown period and all reports are showing that 2016 is expected to be slower than 2015. As a result, most business leaders are looking forward and trying to figure out how to keep key employees engaged in the business and looking for the best ways to retain and attract high level talent.

Trucking Industry Trends Talent within trucking companies continues to be a key issue as the workforce continues to shrink as younger and smaller generations enter the market and attempt to fill roles within the industry. annualized turnover rate increased to 100% for large truckload carriers (carriers with more than $30 million in annual revenue) and 68% for smaller truckload carriers during the third quarter of 2015. The ATA previously estimated that the driver shortage could exceed 50,000 in 2015 and 240,000 by 2023. Some of the leading factors causing the higher turnover and the growing number of driver shortage include the time spent away from home and family, wages, health In February 2016, the American Trucking Association (ATA) released that the

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