In CDL driver recruitment, understanding and managing the cost-per-hire is crucial for optimizing your recruitment strategies and ensuring a steady flow of qualified drivers. The cost-per-hire metric provides insight into the efficiency and effectiveness of your recruitment process, helping you allocate resources wisely and achieve better results. On average, the cost to hire a CDL driver ranges between $5,000 and $10,000, with some estimates going as high as $15,000. This significant investment applies to each new hire, whether they stay with your company or not, highlighting the importance of making every hire count.
What is Cost-Per-Hire?
Cost-per-hire (CPH) is a metric that calculates the total cost involved in hiring a new employee. This includes all expenses related to the recruitment process, such as advertising costs, recruiter salaries, technology and software expenses, and any other associated fees. By understanding your CPH, you can identify areas where you can reduce costs and improve the efficiency of your recruitment efforts.
Key Components of Cost-Per-Hire
- Advertising Costs: This includes the expenses for job postings on various platforms, such as job boards, social media, and industry-specific websites. It's essential to track which advertising channels provide the best return on investment (ROI) to optimize your spending.
- Recruiter Salaries: The salaries and benefits of your recruitment team are a significant part of the CPH. Efficient recruiters who can quickly fill positions with qualified candidates can help lower this cost, and hiring drivers who are a great fit for your team will lead to higher retention rates. This means you'll spend less time and money refilling positions due to turnover.
Tip: Investing in training your recruiters to become talent scouts, not just resume screeners, will pay off in the long run. You'll create a win-win situation by focusing on finding the right fit for your company culture and the specific needs of the driver role. Happy drivers stay on board longer, reducing overall recruitment costs and keeping your trucks on the road. - Technology and Software: The cost of recruitment software, applicant tracking systems (ATS), and other technology tools used in the recruitment process. These tools can streamline operations and improve productivity, but they also add to the overall cost.
- Training and Onboarding: The expenses associated with training new hires and integrating them into your organization. Effective onboarding programs can reduce turnover and ensure new drivers are productive quickly.
- Miscellaneous Costs: Other expenses may include background checks, drug testing, and any other pre-employment screening costs.
Practical Tips for Reducing Cost-Per-Hire
- Optimize Advertising Strategies
Jenna, DriverReach Marketing Specialist for our Attract service, emphasized the importance of educating customers on marketing and recruiting best practices. She said, "It's more than just branding and a good job post. It's all these little elements that are pretty standard for us in marketing but might not be obvious to recruiters." Focusing on high-performing advertising channels and continually refining your job postings can significantly reduce unnecessary spending. Read more on effective advertising. - Utilize Technology Effectively
Angie, one of DriverReach’s onboarding specialists, knows the power of technology from her years of experience as a CDL recruiter. Now, as she helps new customers learn the ropes of the DriverReach system, she recognizes the simplicity and effectiveness of a platform that works with recruiters, not just because of them. "I love the automated features, saved views, and bulk actions. It's a recruiter's dream," she says. “Leveraging these tools can save time, reduce the manual effort required in the recruitment process, and ultimately lower costs across the board.”
- Streamline the Recruitment Process
Efficiency is key in recruitment. Michael Koogler, one of DriverReach’s Engage recruiters, points out that it’s not just what it costs to bring a driver to your door—it’s the effort you put into making that lead count. "You have to hit these leads every day. Three touches a day, four to five days, 12 to 15 touches in a week," he advises. Consistent and timely follow-ups can increase conversion rates, reducing the time and cost spent on each hire. Learn more about drip campaigns - Focus on Quality Over Quantity
Another marketing expert, Shannon Bitzan—our director of recruitment services—, stressed the need to prioritize quality leads over sheer volume. "We want to send you quality leads with qualified drivers that you can hire and actually put in your truck," she said. By focusing on high-quality leads, recruiters can reduce the time spent sifting through unqualified candidates and improve the overall efficiency of the hiring process. - Foster Strong Relationships with Recruiters
Angie also pointed out the importance of building strong relationships with customers and leveraging internal expertise. "We have recruiters on staff doing the same job our customers do. We know what works and can pass that on to our customers," she explained. Collaboration and knowledge-sharing within your team can lead to more effective recruitment strategies and lower costs.
How DriverReach Engage Bridges the Gap
At DriverReach, we understand that effective follow-up and candidate engagement are critical to reducing cost-per-hire. That’s why we offer Engage, an exclusive service available only to our customers using the DriverReach platform.
Engage acts as an extension of your team, with expert recruiters managing your driver applications from lead to hire. They streamline the process, efficiently work leads, qualify candidates, and ensure timely follow-ups, enhancing your recruiting performance and ROI as a seamless part of your recruiting strategy. Here’s how Engage can transform your recruitment process:
Quickly Qualify: Leverage cutting-edge technology to enhance your hiring process. Engage incorporates the DriverReach Platform each step of the way, making it easier to track applications, schedule interviews, and manage communications.
Nurture Leads: Build meaningful relationships with your driver applicants by maintaining open lines of communication and offering personalized interactions. We help you create a welcoming atmosphere that resonates with candidates.
Driver Insight: Gain insights into your drivers' needs and expectations. Our in-depth approach uncovers their motivations, preferences, and concerns, enabling tailored strategies that attract and retain top talent effectively.
Recruiting Partner: Consider us an extension of your team! We're here to lighten your load by handling the complexities of the hiring process. From the initial application to the final decision, we work hand-in-hand with you to ensure that every aspect of recruitment is covered efficiently and effectively.
Karmen and Michael, two Engage recruiters, highlight the importance of having a supportive team and trust from leadership. Karmen speaks to the diligence and energy their team brings to clients: "If you get a team that just can't handle the volume of work, Michael and I are gonna be sweating our butts off doing all the work [for them.] I've worked with carriers where I'm the only recruiter and with carriers that have multiple recruiters. It depends on what they want their recruiters doing."
Michael echos Karmen's sentiment and adds the element of education that Engage recruiters bring to carrier teams they join: "Sometimes, I'm the front line, where I get the application, hand it off, and move to the next one. Other times, we're working alongside them doing the exact same thing. I've been able to teach recruiters when needed, and it's all about being able to talk to people. If you can talk to people, I can teach recruiting."
But in the end, the decisions and direction come from the top. "Ultimately, You need trust from leadership, If leadership doesn't trust the recruiters to make good decisions and they micromanage every process, it's super inefficient. We've gone into some customers like that. No process is better than a bad process because, with no process, we can build good ones. But without leadership trust, recruiting takes too long, getting drivers through the system takes too long, and everything is delayed."
By incorporating Engage into your recruitment strategy, you can ensure a smoother, more efficient hiring process and ultimately lower your cost-per-hire. Reach out to DriverReach today to learn more about how Engage can benefit your recruitment efforts.
CPH is only one part of the big picture
When you get a great driver candidate to your doorstep, it's imperative to try to get them hired before anyone else, make them feel secure and welcome immediately, and ensure they're the right fit for the organization so they stick around longer. By focusing on advertising strategies, utilizing technology effectively, streamlining the recruitment process, prioritizing quality leads, fostering strong relationships with recruiters, and leveraging services like Engage, you can significantly reduce your cost-per-hire and achieve better recruitment outcomes.
Remember, recruitment is an ever-evolving field, and staying informed about best practices and industry trends is crucial. By continuously refining your strategies and leveraging your team's expertise, you can stay ahead in the competitive landscape of CDL driver recruitment.
