Driver retention in logistics: A multi-objective approach

Driver retention is an enormous challenge for companies such as logistics service providers and distribution companies. There is a big shortage of drivers in the market, which forces companies to compete for this scarce resource.1,2 One method to hire and retain drivers is to increase driver wages, but this is challenging in a market with low margins and heavy competition. Therefore, this paper reflects on alternative ways to increase driver satisfaction, which affords companies a unique competitive advantage to retain existing drivers or attract new, young drivers. It shows how driver satisfaction can be considered in supply chain planning: it can be modelled such that the driver’s needs and wishes can be included into operational and tactical planning decisions. These needs differ per industry, whereas personalisation plays a crucial role as well. The paper elaborates on how increasing driver satisfaction may have an impact on operational efficiency and shows that with only a slight increase in operational costs, substantial steps can be taken to create plans that are perceived as ‘better’ by the drivers. Balancing between costs, sustainability, driver satisfaction and other objectives is becoming increasingly important and requires a multi-objective approach. This paper describes such a new optimum approach and gives examples of how this can be implemented in practice.