IN 2013, OVERALL DQF NON-COMPLIANCE INCREASED 20 PERCENT.
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1 WHITE PAPER Commercial Driver Safety Report - IN, OVERALL DQF NON-COMPLIANCE INCREASED 20 PERCENT. I. Executive Summary Outlook is positive but not without challenges This year, as in recent years, the outlook is positive for commercial trucking; however, it s not without challenges. For starters, truck tonnage separate from other modes of freight transportation continues to grow, representing more than 68 percent of all United States freight tonnage moved in. 1 That number is predicted to rise to 70.8 percent of all freight tonnage by Driving this growth are the increased adoption of new technologies to allow time-specific delivery, electronic tracking of freight and mounting consumer demands for faster, better, cheaper product delivery. With this expansion, comes an uptick in hiring. Employment projections are estimating 14.8 percent job growth within the transportation and material moving industry from to 2020, with nearly all the new jobs being motor vehicle operators and material moving workers. 3 Actual employment is also increasing, amid continued economy instability, as the truck transportation and warehousing sectors grew by more than 31,500 jobs from October through October.4 ( release/empsit.t17.htm) Yet, despite the growing availability of jobs, transportation employers are experiencing unique recruiting challenges and driver shortages. First, the industry continues to grapple with tighter government regulations such as the Comprehensive Safety Analysis (CSA) rules, new hours-of-service rules and centralized drug and alcohol database all aimed at addressing safety problems before crashes occur. As for the driver shortage, it s a growing problem with the demographics of the truck-driving workforce aging and retiring, and fewer younger people entering the field. INFORMATION YOU NEED. PEOPLE YOU CAN TRUST.
2 Drive past industry roadblocks with fresh insight into nationwide trends, resources and recommendations This report shows how these issues and other factors are impacting transportation employers and their hiring processes across the U.S. It offers fresh, statistical insights into hiring, employment screening and drug testing programs that can be used to inform and adjust future hiring practices and benchmark performance. Likewise, the report reveals how smart new resources such as integrated third-party access to the Pre-employment Screening Program offered by the Federal Motor Carrier Safety Administration (FMCSA) can help employers accelerate hiring so they can better compete for workers, as they also comply with industry regulations. Looking ahead, the report also forecasts what employers can expect in coming months and years in terms of emerging challenges, technologies and solutions that will impact hiring, along with proactive program recommendations to help transportation firms stay ahead in the hiring game. II. Industry Review The findings within this section are based on a statistical analysis of employment screening activities conducted by a sampling of First Advantage transportation customers across the United States. Specific date ranges vary based on the featured product, solution or issue. The proprietary information contained in this report can be used to gain insight into broader market activity; benchmark the performance of recruiting, hiring and screening processes along with any supporting technology/software solutions; and intelligently adjust relevant organizational strategies, objectives and goals. This industry review covers the following key areas: Driver Qualification File (DQF) DOT Physicals Substance Abuse Employment Verifications Motor Vehicle Reports (MVR) 3 Key Findings Among the many trends, issues and statistics revealed in this report, below are a few highlights: Overall application noncompliance decreased drastically in, assumed to be from the use of electronic application programs or application tracking systems (ATS) DQF non-compliance due to incomplete safety sensitive questions increased 20 percent in Employment verifications with adverse determinations continue to rise Forces Shaping the Trucking Industry DOT (Department of Transportation) FMCSA (Federal Motor Carrier Safety Administration) CSA (Compliance, Safety, Accountability) csa.fmcsa.dot.gov National Registry of Certified Medical Examiners Motor Carrier Safety Measurement System gov/sms 2
3 DQF: Non-compliance Not many surprises here, as activity is consistent with previous years. The largest offender of driver file non-compliance continues to be the road test, followed by the Medical Examiner s Certificate (Figure 1). Similarly, as in years past, the two most compliant documents within the entire file are the Driver s License and Certificate of Violations documents. Question to Consider Do you know what documents are causing the most issues for your company? Figure 1: Overall Percent of DQF non-compliance (missing + errors) 6.72% % 5.64% 20.8 Road Test Previous Employer Check Annual Review Application Medical Examiners Certificate Certificate of Violations Driver s License Motor Vehicle Record 19.13% 12.92% 17.06% DQF: Overall Non-compliance Trending An interesting trend has emerged here. Application non-compliance decreased drastically in (Figure 2), in a shift that is assumed to be from organizations using an electronic application programs or application tracking systems. The Road Test continues to be an issue-related document, while the largest increase in non-compliance year-over-year was the Previous Employer Check with a 17 percent increase, closely followed by the Annual Review with a 10 percent increase. Question to Consider Have you waived the non-regulatory the Road Test requirement for Commercial Driver s License holders? Figure 2: Overall Non-compliance Trending (-) 45% 4 35% 3 25% 2 15% 1 5% 11.78% 31.42% 43.14% 12.92% Application 1.42% 5.42% 6.72% 6.42% Driver s License 8.83% 2.99% 8.02% 5.64% Motor Vehicle Record 37.73% 27.45% 14.54% 20.8 Road Test 10.89% 9.71% 10.24% 11.3 Medical Examiners Certificate 12.09% 8.01% 7.27% 6.72% Certificate of Violations 13.25% 8.18% 7.91% Annual Review 17.06% 4.01% 6.83% 2.16% 19.13% Previous Employer Check 3
4 DQF: Non-compliance due to Missing Document Analysis Lots of movement is occurring here. While the top categories of Missing Documents for non-compliant status in (Figure 3) mirrored recent years, with Previous Employer Check and Driver s License heading the list, marked changes are occurring within the categories from to. Missing Previous Employer Checks jumped from 91 percent to 99 percent Missing Annual Reviews dropped from 68 percent to 34 percent Missing Road Tests dropped from 78 percent to 61 percent Figure 3: Common Missing Document Year-over-Year Comparison Question to Consider If you perform your previous employment checks in-house, have you considered outsourcing this resource-intensive process? % 99.12% 91.34% 99.68% 49.14% 75.16% 68.85% 34.44% 50.92% 70.77% 62.15% 74.76% 41.85% 52.52% % 14.51% 22.79% 78.86% % % 65.72% 85.02% % 15.34% 14.84% 8.54% 20.19% Previous Employer Check Annual Review Certificate of Violations Medical Examiners Certificate Road Test Motor Vehicle Record Driver s License Application DQF: Non-compliance due to Errors Analysis Apparently the devil is in the details. Although Application non-compliance dropped (overall percent), non-compliance due to Incomplete Safety Sensitive Questions increased in, surpassing non-compliance due to document missing at percent (Figure 4). Since the safety sensitive questions are tacked onto the end of the prior employer sections, they are easy to miss, or applicants may not understand the importance of these questions. Figure 4: Most Common Errors on DQF Documents (by document) 4 35% % 34.44% 25% % 15% % % 14.16% 5% 0.18% Previous Employer Check Annual Review Certificate of Violations Medical Examiners Certificate Road Test Motor Vehicle Record Driver s License Application 4
5 DQF: Non-compliance due to Errors Trending ( ) Here we see another notable change in, as the Medical Examiners Certificate (MEC) and Road Test top error types changed from to (Figure 5). MEC shifted from Driver s complete address on card to Examiners license number/state incomplete Road Test went from Examiner s Info Missing to All components of the test not complete or not applicable 35% 3 25% 2 15% 1 5% 88.87% % 0.18% Previous Employer Check Figure 5: Common Error Year-over-Year Comparison 17.04% 10.96% 7.32% Annual Review 21.54% 17.85% 11.38% 16.24% Certificate of Violations Medical Examiners Certificate Road Test Motor Vehicle Record DOT Physicals: Limited Certifications Trending ( ) The big news here is about obstructive sleep apnea (OSA). OSA levels almost doubled year-over-year from (Figure 6), creating an area of concern considering the effects of OSA described in the special section following the chart below. 9.39% 10.01% 8.78% Driver s License Application Treatment for hypertension, also known as high blood pressure, remained steady for the fourth straight year as the most common reason for receipt of a limited medical card. According to the FMCSA, to be certified to drive, the driver should have ongoing hypertension management and be free of side effects that may impair safe driving. 4.54% 3.37% 2.75% 11.04% Figure 6: Common Reasons for Limited Certifications of DOT Examination % 77.68% 78.11% 75.14% 18.12% 14.15% % 14.98% % 15.92% 20.49% 16.79% 34.44% Obstructive Sleep Apnea (OSA) affects nearly one-third of drivers A study conducted by the University of Pennsylvania and sponsored by the FMCSA and the American Transportation Research Institute of the American Trucking Associations found that almost one-third, 28 percent, of commercial truck drivers have mild to severe sleep apnea. The condition, often linked with being overweight, has a far-reaching ripple effect on drivers. Among its many sideeffects and complications are: Daytime fatigue, which can increase the likelihood of accidents Increased weight gain and a correlating decreased mobility due to lack of energy and disrupted metabolism levels Cardiovascular problems due to sudden drops in blood oxygen during sleep which cause blood pressure to rise Eye problems such as glaucoma The good news is most cases of sleep apnea can be successfully treated. Click here to read more, and be sure to check with local Department of Motor Vehicles for regulations since each state sets its own medical standards for driving a CMV in intrastate commerce % 5.47% 4.29% 2.87% Cardiac Concerns 8.01% 9.84% 10.73% 7.18% Non Insulin Dependant Diabetes Treatment for Hypertension 4.25% 2.89% 2.79% 4.74% Misc 3.16% 4.12% 4.08% 7.18% Obstructed Sleep Apnea Sources: security/sleep-apnea/tools/driving-with- Sleep-Apnea.aspx ; com/health/obstructive-sleep-apnea/ DS00968/DSECTION=complications 5
6 DOT Physicals: Breakdown of Stages for Blood Pressure The majority of physicals tracked 88 to 90 percent showed approved blood pressure, meaning a reading of less than or equal to 139/89 (Figure 7). Yet, this does not guarantee that a driver was given a two-year certification. The guidelines recommend that a driver be given a one-year certification if they are taking blood pressure medication regardless of their blood pressure reading. Also, a person may be given a one-year certification based on other medical conditions or medications unrelated to blood pressure Figure 7: Breakdown of Stages for Blood Pressure (-) % 89.32% 88.98% Approved Blood Pressure 9.74% 8.97% 9.97% 10.14% Possible 1 Year Limited Certification 0.09% 0.59% 0.52% 0.78% Possible 6 Months Limited Certification 0.004% 0.05% 0.19% 0.1 Failed Certification The Rule on Blood Pressure According to the FCMSA Rules and Regulations Part (b)(6) regarding blood pressure: A person is physically qualified to drive a commercial motor vehicle if that person has no current clinical diagnosis of high blood pressure likely to interfere with the ability to operate a commercial motor vehicle safely. Substance Abuse: Positivity by Drug Trending Consistency marks this category. Marijuana continues to be the most commonly detected drug, with positivity rates more than triple cocaine and amphetamines which ranked as the second and third most commonly detected drug (Figure 8). In addition, amphetamine positives continue an upward trend over the last four years. Researchers suspect the increase in positive tests for this substance over the past two years likely stems from the reduced cutoff point, as well as from greater use of prescription medications containing amphetamines to treat attention deficit hyperactivity disorder ADHD % 57.15% 57.74% 58.14% Figure 8: Percent Positive by Drug (-) Overall Positivity Rates are Steady Overall test positivity rates are just over 1 percent for our sample population, all screening customers performing DOT drug testing. These rates have remained steady over last four years, with no drastic increase or decrease Marijuana 16.46% 23.57% 17.33% 16.34% Cocaine 10.04% % 14.76% Amphetamine % 2.19% 2.43% Phencyclidine 4.53% 5.27% 5.31% 5.91% Opiate 1% % 6-MAM % 0.52% MDMA 6
7 National Drug and Alcohol Clearinghouse for CDL Drivers The Act known as Moving Ahead for Progress in the 21st Century (MAP-21) was signed into law in July. It requires creation of a drug and alcohol clearinghouse for drivers by October 1, According to the FMCSA, the intention of this new resource is to increase highway safety by ensuring CDL holders, who have tested positive or have refused to submit to testing, have completed the U.S. DoT s return-to-duty process before driving CMV s in interstate or intrastate commerce. So far, actual development of the clearinghouse has been delayed by Rulemaking and review by the Office of Management and Budget; however, the industry is awaiting updates from the FMCSA. Employment Verifications: Discrepancy Trending This trend shows that for every action there s a reaction. The number of adverse employment verifications has steadily increased more than 8 percent in the last four years, topping this year at 41.6 percent (Figure 9). But, what s likely driving this increase is a continual three-year rise in the volume of overall employment verification requests. Also, a closer look at these numbers shows that less than 60 percent of candidates undergoing a DOT employment verification are immediately cleared, revealing potential a potential hiring roadblock. Question to Consider Does your company have a specific list of standard adverse reasons for employment verifications? Figure 9: Adverse Employment Verifications (-) 45% 4 35% % % 2 15% 1 5% 7
8 Employment Verifications: Discrepancy Analysis Here, two common discrepancies are responsible for nearly two-thirds of all adverse employment check reasons in. Incomplete interview tops the list, followed closely by Date Discrepancies (Figure 10). 6% 13% 5% Figure 10: Common Adverse Employment Verification 2% 2% 2% 3% 3% 39% Incomplete Interview Date(s) - Data Discrepancy No Response from Attempted Contacts Records Not Maintained and Do Not Exist at Entity No Record Found at Verification Source Unable to Locate Entity Unverified Data Employment / Termination / Non-Eligible Rehire Position/Title - Data Discrepancy Employment / Termination / Non-Eligible Rehire Top Employment Discrepancies 1. 39% Incomplete interview 2. 25% Dates of employment 25% MVR: Discrepancy Trending Not much movement has occurred here, as MVRs with adverse findings are hovering between 49 percent and 51 percent. However, defying the modest uptick of MVRs with adverse information in recent years, the adverse rate trended slightly down in (Figure 11). Although Medical Certificate status is starting to be included in DMV payload data for some states, this has not yet been programmed as an automated adverse code by First Advantage. Figure 11: MVRs with Adverse Findings (-) 52% 51% % 49% 49.19% 48% 8
9 MVR: Discrepancy Analysis Steady is the best description of activity in this category, as the leading MVR adverse reason, one or more violations, remains relatively unchanged over the past four years (Figure 12). Although the one or more violations category did slightly decrease over last year, it is countered with an increase or almost equal level of MVR results returned with an adverse category of MVR violation(s) and adverse license status/class. Figure 12: Common MVR Adverse Reasons (-) % 86.35% 84.22% % 5.07% 4.69% % 3.25% 3.42% 5.23% 4.78% 5.33% 5.11% MVR - No Record Found MVR One or More Violation(s) MVR Adverse Driver s License Status or Class MVR Violation(s) and Adverse License Status or Class III. Key Trends: Technology is Changing Behavior As in other industries, technology is driving many of today s hiring trends within transportation, as a younger generation of applicants and employees prefer to interact with employers via smart phones, mobile applications and the internet. Below are key observations, based on a transportation industry survey conducted by Tenstreet. Frequent dips in relative application volumes and recruiting activity (Figure 13) correlate strongly with the ongoing shortage of qualified drivers. While there are plenty of interested drivers, employers are having a harder time finding and hiring drivers who comply with today s growing list of regulatory requirements. Figure 13: Application Volumes and Recruiting Activity Acted On App Volume 45% 43% 41% 39% Learn more about simplifying driver hiring sales@tenstreet.com % Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 35% 9
10 Mobile application traffic is steadily climbing (Figure 14), with one out of three website visitors using a mobile device. Many applicants visit a carrier s website more than once, often coming back after their initial visit to apply or complete an application. This suggests that transportation firms should ensure their online application process is as seamless as possible in order to attract and retain the interest of quality applicants. Figure 14: Mobile Application Traffic 4 35% 3 25% 2 Applications Visits 15% 1 5% April May June July August September Mobile device diversity is less prominent (Figure 15), with the majority of website visitors using Android-devices, over other popular devices. This suggests that carriers should adjust their mobile presence in order to benefit from this reality. This can include ensuring device-specific site optimization, targeted advertising and more. Figure 15: Mobile Device Diversity Android ios Other Windows Re-application behavior is high, as between 40 percent and 50 percent of all applications received during a given month have been received previously by that carrier during the preceding 12 months. This suggests that most carriers already have contact information for half the drivers they market to each month, proving that outbound marketing is powerful tool. Equally important, it suggests the importance of understanding the context associated with a given driver. 10
11 IV. Looking ahead: resources and recommendations In the year ahead, carriers will be looking for ways to strengthen and streamline regulatory compliance, and better compete for the most qualified drivers. The resources and recommendations below can help on all fronts, while also helping to improve overall hiring efficiencies. 1. Gain integrated access to the Department of Transportation, Federal Motor Carrier Safety Administration s pre-employment screening program (PSP). If you have any questions about this report or First Advantage solutions for screening, please contact us at or solutions@fadv.com. PSP is a federal program created to help motor carriers make more informed hiring decisions by providing electronic access to a driver s crash and inspection history from the FMCSA Motor Carrier Management Information System (MCMIS). While direct access is available by enrolling online through the FMCSA website, integrated access is now available through PSP 2.0, which allows third parties to have direct access to PSP records on behalf of motor carrier clients and drivers. With this option, PSP requests can be initiated within the screening provider s online interface, and results can be viewed there as well. Centralizing PSP requests under a third-party provider can save time and accelerate hiring, since it eliminates the need to access multiple Web-based platforms during the screening process. Likewise, it offers other key benefits including: Transfers audit responsibility from carrier to third party Eliminates requirement to enroll with NIC Allows third-party providers to offer comprehensive package of background documents to carriers Consolidates the management of all customer service and billing under third-party provider 2. Automate your screening and hiring processes, and expand your online accessibility. As mentioned throughout this document, workforce demographics in the transportation industry are shifting to a younger, more tech-savvy audience. Increasingly, qualified applicants will be less tolerant of slow, outdated hiring processes and will be more likely to work with carriers who they perceive can make their lives easier. Below are a few strategies to consider, if you re not already doing so: Switch from a manual paper-based process to an online Applicant Tracking System. There s nothing new about an ATS, which is a solution that enables the electronic handling of recruiting and hiring tasks. However, as more carriers continue to shift to these automating hiring systems, the firms who have resisted will stand out and not in a good way. Without this technology, it will be harder to quickly connect with and hire qualified talent. 11
12 1 ATA American Trucking Trends report 2 U.S. Freight Transportation Forecast to 2024 ATA, June 26,
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14 We can help. Contact us at or to schedule a free consultation today. As the trusted partner of over 45,000 organizations worldwide, we at First Advantage provide easy-to-understand background screening results so you can confidently make decisions about prospective employees, vendors and renters. Not only does this safeguard your brand, but you also arrive at dramatically better background insights insights you can rely on. It s time to partner with First Advantage. Now in 25 locations, 12 countries and conducting over 23 million international background screens annually. Trusted Knowledge. Exceptional People. First Advantage 2014 FADV.com FADV_WP_CommercialDriverSafetyReport
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