Driver recruiting is an inevitable expense for carriers that can feel never-ending. And if you don’t know how much you need to spend, you can unnecessarily throw money away for minimal results.
Fortunately,
We are here to help you figure out how to calculate how much you need to spend on your next driver recruiting campaign.
Knowing these numbers will help you establish a path to success and trucks on the road.
Here are the steps to calculate your driver recruiting spend:
- Start With The Number of Vacancies
- Calculate Your Candidate-to-Hire Ratio
- Determine the Number of Candidates You Need
- Look at Past Campaigns or Ask For Guidance
Start With The Number of Vacancies
The first step is to determine the number of open trucks that you need to fill.
Obviously,
You will know how many trucks are parked in the lot.
However,
You must also calculate the number of drivers you expect to leave within the next month. To calculate the expected churn for the month, use this formula:
((Number of Trucks) x (Yearly Turnover Rate)) / 12
Here is an example:
(100trucks x 0.1turnover)/12 = 10/12 = 0.83333
To be safe, round up to one driver.
In this example, if the carrier has 7 open trucks, they will need to plan to hire 8 drivers over the next month to account for expected churn.
Calculate Your Candidate-to-Hire Ratio
This next step is to determine how many candidates it takes for you to hire one driver. It is best to look at the data from your previous efforts, but if you do not have this data, you can reach out to an expert for advice.
The more data you have, the better.
To calculate your candidate-to-hire ratio, you need to first figure out the total number of candidates you have received in your previous recruiting campaigns.
Once you have that number, find how many drivers you hired from that pool of candidates.
If you have received 120 candidates, and you hired 6 of those candidates, your candidate-to-hire ratio is 120:6.
120/6=20
Your driver recruiting campaign needs to generate 20 candidates for you to hire 1 driver.
Determine the Number of Candidates You Need
Take the vacancy number from step one, and multiply by the answer from step two.
In this example, the fleet has 8 vacancies to fill and hires 1 driver for every 20 candidates generated.
8×20=160
Your driver recruiting campaign needs to generate 160 candidates for you to fill your projected vacancies.
Look at Past Campaigns
Now that you know how many candidates you need to generate, you can calculate how much you need to spend to hit your target.
To do this, you need to look at the data from past campaigns.
If you spend on average $1000 per campaign and receive 40 candidates, you will need to up your spend to $4000 to meet your hiring goals.
Conclusion
Breaking down the data for your driver recruiting campaign can help you see the forest through the trees. Knowing these numbers will help you establish what success looks like and the path to get you there.
Interested in learning more about how to get your fleet filled? Complete the form below to speak with a Meramec Solutions specialist today!
