Recruiting truck drivers today, amid a national trucker shortage, is posing a serious challenge for companies across all types of industries. Yet Walmart was able to add about 1,400 new drivers to its private fleet over the course of 2018, and half of those were recruited in the final four months of the year. How did the retail giant buck the trend?
First, let’s clarify why hiring this many drivers is such a feat in the first place. Some of the key factors contributing to the driver shortage include:
- High industry turnover
- Retiring baby boomer drivers
- Drivers lost to other industries
- Increased competition for truckers
- New generation seeking better benefits and work-life balance
Large truckload carriers saw an average turnover rate of 98% in second quarter 2018, the highest rate since 2015 — American Trucking Association
The American Trucking Association estimates that the industry is facing a driver shortage of 50,000. FTR Transportation Intelligence put the number much higher — at a record 296,311 in the second quarter of 2018. Industry advocates are currently pushing for Congress and federal agencies to develop an apprenticeship program that would create a pool of qualified young drivers.
Walmart’s Hiring Push and New Recruitment Tactics
So, what did Walmart do differently from competitors looking to hire drivers?
- Offered $1,500 referral bonuses
- Turned to social media platforms to connect with younger workers
- Streamlined the application processing time to 31 days, down from 73 days
- Provided competitive pay and benefits, with first-year drivers able to earn up to $86,000 and accrue up to 21 days’ vacation
- Ran a nationally televised advertisement focused on the company’s truck drivers, with the tagline “Hats off to the unsung heroes of the road”
Changes to Walmart hiring events helped to further optimize and speed up the recruiting process. During three-day hiring events, for example, drivers who have met the minimum qualifications are able to demonstrate their skills, learn the company’s protocols and expectations, and then immediately take the required driving tests.
Earning $86,000, Walmart drivers are in the 89th percentile for individual income in the U.S. — Wall Street Journal calculator
At the same time, the company has maintained stringent requirements for recruiting. For instance, new trucking team members must still have at least 30 months’ worth of driving experience. “Safety is our priority. We are not going to adjust our minimum standards due to a tight labor market,” Tracy Rosser, a senior vice president of transportation and supply chain at Walmart, told Yahoo! Finance.
Driving Into the Future: Walmart’s Trucking Outlook for 2019
Think Walmart is done with its driver hiring push? Not yet. The company reportedly began 2019 with 1,000 drivers in its hiring pipeline and shows no signs of slowing.
Walmart estimates that its drivers travel approximately 700 million miles annually, transporting products from distribution hubs to its 4,7000 stores nationwide, and promises “a 300-mile average length-of-haul and a regular work schedule” as well as “reset hours at home, not on the road.” The implementation of driverless truck technology is also in the works to address the ongoing driver shortage.
With demand for trucking services on the rise, industry players will likely be keeping a close eye on Walmart’s next move.