Finding/Keeping

1. Finding/Keeping Attracting and Retaining the Best Drivers Laura Alberts Human Resources Manager Western Disposal October 2, 2008 lalberts@westerndisposal.com

2. A little about my Company –Western Disposal • Private • In business for 38 years • Operate in Boulder County primarily (30 miles north of Golden) • 120 employees total • Half (60) are Drivers • Dramatically reduced driver turnover and increased new hire quality in recent years… • Even very different organizations will hopefully gain some useable ideas

3. Turnover History • 1999 – Over 80% • 54 route terminations • 2006 – 8% • Just 5 route terminations • Best ever • 2008 – year to date 11%

4. 1999 – A Wake Up Call • A VERY bad year for route turnover • Revolving door of new hires • 50 route terminations total • 40 with <1 year of service • half (20) of those in 1st 30 days ! • We were filling a job 3-4 times before achieving a good fit (revolving door) • Most terminations were involuntarily • Something was wrong!

5. Today • Average Driver tenure is 6.8 years • Average tenure all employees = 8.9 years • > 50% have six or more years of service • 22% with 11-23 years

6. How we approached problem • Acknowledged we must be the problem. • Stopped attributing problem to new generations of workers or the general decline of quality applicants. • Stopped rationalizing that turnover didn’t cost much if it happened early. • Decided to come at problem from every angle.

7. Every Angle • Sourcing • Screening • Interviewing • Selection • Orientation • Training • Rewards • Recognition • Discipline

8. The only thing we did not change • Pay (and benefits) • Yes, Western has always paid above what we determine to be “market average”. • But that didn’t keep us from having 80% turnover in 1999. • Nor do we think it was a factor in our achieving just 8% turnover in 2006. That happened without change to pay and benefits structure or strategy.

9. Sourcing • Before and since 1999, employee referrals have been our #1 source of candidates. • But our culture didn’t always reinforce that referrals should be of high quality. • Starting 2000, we explicitly communicated this to employees as part of the highly-visible changes to the hiring process. It worked. • We opted not to use referral bonuses, wanting pride, not money, to drive referrals.

10. More on Employee Referrals • Applicants get most information about Western and culture from their employee contacts. • Our employees communicate that Western is a no-nonsense, high control culture with high expectations. • But if you make the grade, you get a lot in return. • Since 2000, only 2 post-offer positive drug screens. No failures in employment eligibility vetting.

11. Other Sourcing • When using ads, we’ve recently concluded the following: • Use both internet and print ads • Some excellent recent new hires have come from internet • But there is still a subset of applicant pool that is not computer savvy and prefers print ads • We would not have some good people if we restricted ourselves

12. Screening • Helter-skelter -- Applications used to go to HR or any one of 5 route supervisors depending on how it came in the door. • With 2000 hiring improvement initiative, all applications came through HR, no exceptions. • HR carefully screened and kept pool of “most qualified” or “pre-qualified” applicants. • Often turned away applications for incompleteness or asked that it be redone. • Any checking that could legally be done pre offer was done (MVRs in particular).

14. Interviewing/Selection • Interview Drivers like Executives • Before: • Interviews were briefer, more casual • Incomplete applications were accepted • One person (usually route supervisor) interviewed and made the hiring decision • Sometimes made hiring decision after just 1 acceptable interview • After: • 3 interviews (HR and 2 route supervisors) • More formal, each person asks specific questions • Interview 2-4 candidates whenever possible • 3 interviewers make hiring decision together (face-to-face)

16. Setting Expectations • Human Resources interview in particular stressed culture and expectations. • In addition to questions about candidate’s work behaviors, very clear communications about our high expectations. • Supervisors cover culture in interviews too, but this us mainly an HR job. We (myself and another HR staff person who speaks decent Spanish) ten to err on side of overstating what may be fit issues. • Under sell; over deliver. Happier employees.

17. Vetting • Post-offer drug screen (D.O.T. physical and drug screen timing depend on starting job) • Criminal background checks • Reference checks – past two positions driver or not (plus D.O.T. reference check where applicable) • Social Security and Basic Pilot Program verification within 72 hours of hire

18. Orientation and Training • 1st days and weeks, employees get a lot of face time • route supervisor • relief driver • other senior driver • Also, training videos and safety sessions... hands on exposure

19. Orientation and Training • In past, almost always hired as Helpers (even experienced drivers) and internally trained before promoting to driving positions. • Automation has made this more difficult (only 2 Helper positions), but we still adhere to philosophy. • Even most highly experienced Drivers must go through our training program before taking wheel of Western vehicle.

21. Safety • As turnover declined, frequency and severity of injuries and vehicular accidents also declined. • This also happened as we converted more routes to automation but retention considered equal contributor. • Increased automation allows workers to stay in driving positions longer. • Drivers attend pre-shift safety training meetings every other week.

23. Operations DepartmentAccident Statistics2000 - 2005 Accidents per Million Miles

24. Operations DepartmentInjury Statistics2000-2005 Injuries per 200,000 Hours

25. Driver Tools and Resources • Western invested heavily in technology in early 2000’s. Giving Drivers tools that made their jobs easier contributed to reduced turnover. • Bar-code scanners • Symbol vs. word maps • GIS and GPS technology • Western’s investment in technology has paid off both in terms of retention and profitability.

27. Incentive Pay – Carrot or Stick? • Incentive Pay • Probably a stick... but we present as a carrot. • Huge success - greatly reduced absenteeism and tardiness. • Base Rate plus two $1.00 per hour incentives. Incentives are automatically earned unless infraction occurs: • Any instance of absence or tardiness for which 7-day advance notice is not given • Non-judgmental way to curb attendance issues... simply a consequence • Someone who is absent or tardy without 7-day notice earns $2 less per hour up to 40 hours and $3 less per overtime hour. A powerful incentive.

28. Incentive Pay • Other infractions that result in loss of one or both incentives • Customer complaints • Misses • Equipment abuse • Route check violation • any number if things from non-use of PPE to not following manifest and map, etc... • On average only 4 (range: 0 –15) route employees lose one or both incentives each week • Virtually no complaints about application of incentive pay system

30. Discipline in General • All policies are written with consistency in mind but language that allows variation when needed • When ______ happens, Western will generally respond by ______ ... • However, response will always be decided on case-by-case basis with consideration of circumstances. No single decision will serve as precedent other decisions. • We strive for consistency but make full use of case-by-case management discretion. We don’t try to fit all cases to single policy. Rather apply common sense as much as possible.

31. High Expectations... new employee • Keep communicating and reinforcing high expectations... especially early on • Quick to end it if it looks like there is not a fit... be sure, document the facts, but also trust the intuitive judgment of our highly experienced supervisors • Be tough and consistent but also empathetic in real times of employee need (thus the case-by-case decisions in all policy enforcement) • Expect a lot and when it is earned give a lot back

32. Rewards • Employee Favorite Employee Appreciation lunches – simple and for no particular reason. 4 – 5 per year

35. Annual Safety Kickoff Breakfast Route Supervisors Prepare and Serve Food

36. Rewards • Safe Driver Award • Awarded to employees in driving position from January 1 through December 31 who have NO accidents. • An accident is anytime a vehicle makes contact with another object or vehicle. We make no exceptions... backing into a mailbox... it could be a child on a bike. • Award = $100 (net) for each consecutive year of safe driving. • largest award ever given $1,700 for 17 consecutive years of safe driving • last year – 38 safe drivers, award ranged from $100 to $1,300 • Awards given at banquet with spouses attending. Gifts of clothing, watches, etc. are also given. • It is a big deal.

37. Congratulations!! 2007 Safe Drivers Safe Driver 2007

38. In Conclusion: What leads to happy Drivers?

39. Review of Key Points • Pay is less important than we all tend to think in attraction and retention • Adherence to a detailed screening, interviewing and orientation process is critical • Identify your culture and values and communicate it in everything you do • Clarify your expectations and keep them high • Apply policies and discipline consistently... but be open to case-by-case variations • Consider incentive pay • Reward – the simple things go a long way