Webinar Replay #109: Return on Safety

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Lydia Wommack: Good morning! Hi, everybody, welcome!

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Lydia Wommack: We are so glad to start the day with you, and this is a little unusual for us. We typically do a little bit later in the day, but it’s such an important topic that we wanted to give everybody time to really focus, hopefully at the desk, before things start getting a little busy, a little crazy.

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Lydia Wommack: Before I say anything else, my name’s Lydia Womack, I’m the marketing director here at INFINITI Fleet Safety Training, and we’re, going to send the replay out. I know that’s a common question for everyone. Yes, everyone will get a replay video from this, because it’s really good information, and we want you to be able to digest it and kind of come back to it time and again, so we will send that after the end of the webinar this morning.

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Lydia Wommack: So, why are we here? The operational costs of staying in business just seem to keep going up. Insurance keeps rising, maintenance costs keep rising, seems like everywhere you turn.

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Lydia Wommack: money going out the door is rising. And…

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Lydia Wommack: Even tech stacks are increasing, and, you know, everyone’s adopting more and more technology to address issues.

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Lydia Wommack: And that’s adding to the expense side of the business, but I think the question is, is profitability growing along with it?

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Lydia Wommack: we actually know that safety can be a place that generates a return on investment, and so that’s why we asked Jay to join us today. Jay is the CEO of our company, has a history in the oil field, has a history in other markets, always looks at outside industries to see what’s working there and what can be applied here.

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Lydia Wommack: And, we invited him to talk today about how to turn safety from a cost center to a profit center. We’ve seen it done before, and it actually is, not easy, but it is very common sense, to do that. So, we invited Jay to join us and share, and, please join us over in the chat. I’d love to hear about who’s here, any questions you have, I’ll lift them up to Jay in the conversation.

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Lydia Wommack: Because we’d like to make this an open one. In fact, the next time we do this, we might just have cameras on for everyone, so everyone can just kind of ask questions and can be more of a roundtable conversation. But without further ado, thank you again so much for joining us, and Jay, hit us. What do you have?

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Jay Wommack: Thank you, Lydia, I appreciate that. That’s quite the introduction. I did work in the banking industry, and I’ve worked in the oil field, and the brokerage industry, and different industries in the past. This first slide…

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Jay Wommack: That is a very broad claim. Number one, in return on safety, because we invented the way to make safety pay.

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Jay Wommack: I was sitting on an airplane one afternoon, and I was talking to the CFO of a 30,000-employee company, and they have… they’re not trucking, but they have ambulance drivers, and they have helicopter pilots, and they have airplane pilots.

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Jay Wommack: And I started talking about what we do, this INFINITI Fleet Safety Training. Well, we’re in fleet safety training, and what we do is… is we decided we would start

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Jay Wommack: looking at targeting line items on the P&L and balance sheet, and turn safety into an asset class as opposed to cost class. And most CFOs, most C-suites, most owners look at safety as an expense, and they look at safety as they check the box.

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Jay Wommack: And so we look at it and said, let’s start taking a look at the P&L and the balance sheet, and let’s start looking at what really is going to drive revenue, and what’s going to drive more profitability in a company. Because right now, what we’re all seeing is we’re spending a heck of a lot more money on technology in the cab of a truck, and we’re losing more money per mile.

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Jay Wommack: So, with that being said, let me define return on safety. It equals reduced losses.

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Jay Wommack: plus improved efficiency, divided by the training investment. So, effectively, whatever you’re spending on training right now, if you can reduce your losses. Now, if we can improve efficiencies, and I’m going to go through some examples of things that we’ve done in the past, and what clients have done in the past, and I’m going to tell you a really, really good story.

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Jay Wommack: That… that happened in the late 2007-2008 era.

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Jay Wommack: And it improved the operating ratio so much that it was… it was an incredible, incredible story.

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Jay Wommack: You’re already spending money on safety?

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Jay Wommack: Do we help fleets structure that existing spin so it safeguards the company and compounds financial performance at the same time?

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Jay Wommack: And when I say compounds, I can tell you a story about our own company, where we spent $12,000, and we still have over $1.5 million and counting coming in the door because of that $12,000 spend on training and on processes.

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Jay Wommack: and making sure that we follow the same guidelines every single time we do something. That is quite the return, and I can actually… I can actually talk to anybody individually about how we did that.

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Jay Wommack: So here’s the… here’s the… everybody should have a quote.

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Jay Wommack: Everybody should have a quote.

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Jay Wommack: This is my quote.

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Jay Wommack: Your greatest asset and your greatest liability is the behavior of your employees.

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Jay Wommack: And if you don’t believe that, think about the accidents that we’ve seen happening down in Florida in the last 6 months with the people that didn’t know how to speak English, and they kill folks. So the behavior of your employees is your greatest asset, or your greatest liability. So what we want to do

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Jay Wommack: Is we want to focus on the behavior and behavioral change of your employees when we start looking at some of these items.

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Jay Wommack: So, quickly, this is who I am. We’ve been in business 26 years.

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Jay Wommack: We’ve delivered 188 million training sessions to over 3.5 million employees and 5,000 fleets, or 5,000 companies.

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Jay Wommack: What’s interesting is, when we started doing this.

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Jay Wommack: the numbers started speaking to us, and we started looking at trends in the industry based on those training sessions, and based on those companies, and based on those fleets, and they started giving us some real-world information. So, I want to jump right in to a great story of behavioral change, because the behavior of employees is critical.

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Jay Wommack: Now, everybody… If you don’t have a mentor, you need to get one.

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Jay Wommack: And I had a mentor when I first started this company.

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Jay Wommack: And he was in the transportation industry.

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Jay Wommack: And he had been around for a long time, and I could walk in his office, and I could say, hey, Tony.

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Jay Wommack: I’ve got an idea, and about half the time, he would look at me and say, that is the stupidest thing I’ve ever heard of.

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Jay Wommack: And the other half the time, he would say, you know, that may work, let’s try that, let’s see what happens.

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Jay Wommack: So I walked in his office in 2007, and I’m gonna… this is ancient history, because we have to have the facts and the numbers that lead up to where we are.

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Jay Wommack: I walked into his office in 2007 and said, Tony, I’ve got a really crazy idea. Now, at the time, Tony, let me give you some background on him, he had a 1400 truck company. He had started with one truck with he and his wife, and he had built it up over the years.

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Jay Wommack: And I walked in, I said, Tony.

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Jay Wommack: Do you keep records on your most fuel-efficient drivers?

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Jay Wommack: And he said, yeah, I do. Why?

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Jay Wommack: And I said, well.

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Jay Wommack: I want to see if we can use some common sense approach and improve fuel efficiency across the board, and improve your accidents, and lessen your accidents if we can get your people to drive more fuel efficient.

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Jay Wommack: He said, what are you thinking? I said, well, what I’d like to do is interview your top 5 most fuel-efficient drivers. Now, I know on this webinar right now, we have some companies that have anywhere from 10 trucks all the way up to 1,000 trucks on this webinar right now.

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Jay Wommack: So, if you’re keeping these records, think about this process.

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Jay Wommack: So Tony gave me the 5 most fuel-efficient drivers, and it was a fun event.

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Jay Wommack: And I’m gonna tell you the entire story here of how it happened.

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Jay Wommack: We took those 5 fuel-efficient drivers, and what we wanted to do

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Jay Wommack: was find out how they drove so fuel efficiently. Now, here’s the deal.

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Jay Wommack: Nobody wants to listen to some engineer from Freightliner or Peterbilt tell you how to drive a truck.

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Jay Wommack: And nobody wants somebody in the ivory tower telling them how to drive a truck more fuel efficient.

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Jay Wommack: They want to hear it from their peers. They want to hear it from the fellow truck drivers that are out there.

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Jay Wommack: And that makes sense. And so, all we did, we have a model.

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Jay Wommack: And it’s our protocol, and our protocol is short, sweet, simple, to the point. So what we did is we put the camera on these 5 different drivers.

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Jay Wommack: And we just let them talk about how they drive fuel efficiency.

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Jay Wommack: Just talk about it.

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Jay Wommack: We wanted to model their behavior. We took the 5 most fuel-efficient, we wanted to model their behavior, we put the camera on them for about 6 hours, 5 or 6 hours.

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Jay Wommack: And then we edit it down to 26 short, sweet, and to the point.

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Jay Wommack: Videos and curriculum classes that we put on our system, That would remind them how to drive.

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Jay Wommack: more fuel efficient.

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Jay Wommack: And here’s what happened We cut it down to 26,

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Jay Wommack: 2 to 3 minutes. We wanted them to be able to go log on, take the curriculum.

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Jay Wommack: Acknowledge they’ve done it with the test, log out.

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Jay Wommack: And we wanted 26 every week, one a week, for half a year, to remind them of what was gonna happen.

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Jay Wommack: And how they could drive more fuel efficient.

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Jay Wommack: So I want you to think about the model that we just did. We modeled the most fuel efficient, we did it short and sweet and to the point, which, by the way.

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Jay Wommack: We were using this same concept of short, sweet, and to the point 6 years before MIT came out with their study that said, oh, this is the way to get behavioral change among employees.

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Jay Wommack: we’ve been doing it for 6 years, and we did it with a common sense approach. I’m gonna sidestep here and tell you a quick story. I want you to imagine…

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Jay Wommack: that you have a 15-year-old son, because I have, in the past, had a 15-year-old son.

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Jay Wommack: In it?

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Jay Wommack: Leave us some budhead, picture them.

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Jay Wommack: I want you to imagine that on January the 1st, you walk into your 15-year-old son, and you say to that 15-year-old son, this year, son, we’re gonna do it differently. This year, I want you to make your bed, clean the room, you know, bathe the dog, brush your teeth, you know, take a shower, take the garbage out, mow the yard, and I’m gonna check back with you.

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Jay Wommack: on December the 31st, and we’re gonna see how that happens.

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Jay Wommack: Now, when I’m in front of a live audience, everybody laughs at that, because we all know that’s not gonna happen.

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Jay Wommack: We want short, sweet reminders. So, number one, common sense, short and sweet.

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Jay Wommack: Because the attention span of a gnat is what we have now. I think they say 47 seconds is the actual attention span that we have today. I’m not sure if it’s that low, but it’s fairly low.

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Jay Wommack: The other thing we wanted to do was make sure that

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Jay Wommack: That, are you smarter than a 5th grader? Remember that TV show, Are You Smarter Than a Fifth Grader? By the way.

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Jay Wommack: If you watch that show, you may find out that you’re not as smart as the 5th graders are. However.

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Jay Wommack: We wanted to keep it simple.

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Jay Wommack: And to the point, And that’s what we did.

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Jay Wommack: Simple, and to the point.

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Jay Wommack: And so we deployed it over the next 26 weeks at Tony’s company.

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Jay Wommack: And Tony’s company improved their profitability They improved their fuel efficiency.

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Jay Wommack: by 13%. Now, I want you to recognize this was not compliance at pulling into the right truck stop where they had a more fuel-efficient price. This was actual fuel efficiency, 13%. Now, I’m going to show you another slide here in a minute.

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Jay Wommack: It talks about… we were so excited by that number that we made it generic for the entire… all of our clients.

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Jay Wommack: At the time, all of our clients at the time, we made it generic, and the ones that used it generically got a 3% return.

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Jay Wommack: Another lesson here. When you’re going to do something.

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Jay Wommack: If you can use your equipment, if you can use your logos, if you can use your people, you’re gonna get a much higher rate of return.

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Jay Wommack: Now, 3% generic was good.

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Jay Wommack: go do the math. If you’re running 9,000 miles a month per truck, and you can get a 3% fuel efficiency.

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Jay Wommack: start doing the math. Now, I’ve had people that walked up to me and said, Jay, that was back in the day, now we have these automatic trucks, we don’t need that.

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Jay Wommack: Actually, you do.

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Jay Wommack: See, I play a little game.

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Jay Wommack: In my Suburban, I keep the fuel efficiency, and I want to know exactly how much… how many miles per gallon I’m getting.

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Jay Wommack: And I’m really proud that I’ve got over 20-plus miles to the gallon.

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Jay Wommack: Then my wife gets in the car, and I start looking at the number, and it drops down to 16 or 17. Well, it’s automatic, so…

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Jay Wommack: How you drive fuel efficiency.

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Jay Wommack: makes a difference. And if you can train people and keep it top of mind.

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Jay Wommack: And you can use this same model of modeling.

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Jay Wommack: Short, sweet, and to the point.

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Jay Wommack: Long reminders.

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Jay Wommack: And you can… you can have an impact on any line item. It’s critical in your department or in your company.

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Jay Wommack: Any line item.

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Jay Wommack: Now, Tony, Did so well.

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Jay Wommack: With this program, that he signed a contract with an outside firm

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Jay Wommack: to come in and look at every single line item on this P&L and balance sheet. And when I’m in front of a stage, I actually take all that information, because we worked with him on that information to deploy it at his company. And it’s a stack of papers, it’s about this big, and it probably weighs about 20 pounds, and I like to drop it on the desk so it gets an impact.

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Jay Wommack: But he spent $830,000.

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Jay Wommack: in the end game for Tony.

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Jay Wommack: By the way, there’s that slide real quick. The fuel savings, 13%.

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Jay Wommack: That’s a big lesson, by the way. If you don’t get anything else out of today, that’s a big lesson.

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Jay Wommack: Custom content, user-owned content, and if you need help, we have a video production department to come in and help you do this. 13 versus 3. 3’s good, and I’ve seen some of the people in the average group of 3 get up to 7% or 8%, but 13 with your own.

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Jay Wommack: Here’s what Tony did.

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Jay Wommack: He spent $830,000. It took 6 months for them to come in and look at every line item on his P&L balance sheet. And then we took those line items, and we started to target the ones that would do the most good for the company the quickest.

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Jay Wommack: And between 2008, 9, 10, and 11,

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Jay Wommack: When the industry was struggling greatly.

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Jay Wommack: not like it is today, but when it was struggling greatly. His operating ratio was 88, and the industry was 101 to 102. Now, what that means, to those of you that don’t understand the C-suite CFO talk.

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Jay Wommack: for every dollar, Tony was making 12 cents.

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Jay Wommack: The rest of the industry was losing 2 cents.

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Jay Wommack: For every dollar.

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Jay Wommack: Now, I went to chat, because artificial intelligence is so popular nowadays. I went to chat, and I said, okay, chat.

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Jay Wommack: What were the real ORs back then?

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Jay Wommack: help me… help me replace my memory with that. Well, it can only go to public information, and the 4 or 5 biggest publicly traded companies at the time, when Tony was running an 88, consistently running an 88,

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Jay Wommack: Operating ratio, because of what he had done during bad times.

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Jay Wommack: The top 4 to 5 companies in the industry are running anywhere from 92 to 97.

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Jay Wommack: So… You know, 4 points was the worst increase he had over his nearest competitors out there.

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Jay Wommack: So this is a critical thing to be taking a look at.

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Jay Wommack: You’ve already heard some really good, insightful information on how do you target, how do you do things.

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Jay Wommack: So now, I want to apply it to something simple, because it’s not just always direct. This slide really

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Jay Wommack: This next part of the presentation really talks about miscommunication within companies.

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Jay Wommack: So, let me give you an example.

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Jay Wommack: I mean, miscommunication in the trucking industry is worse than a Hallmark movie. That gets a laugh, too, in front of a live audience.

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Jay Wommack: See, the owner and president of a company

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Jay Wommack: They want the same thing the safety director wants.

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Jay Wommack: And the recruiting director wants the same thing. They want to recruit safe, good drivers. They don’t want accidents, they don’t want to have costly accidents. They don’t want to have fatalities. The C-suite doesn’t want that.

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Jay Wommack: The recruiting director doesn’t want that.

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Jay Wommack: The safety director doesn’t want that. Maintenance doesn’t want it.

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Jay Wommack: But they all speak… they want the same things, but they all speak different languages. And if you don’t have them communicating properly, then you get…

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Jay Wommack: Cross-communication or miscommunication, and you get things out of line.

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Jay Wommack: So let me just take a simple thing like driver turnover, just as an example.

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Jay Wommack: Now, I want to run down the P&L and balance sheet.

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Jay Wommack: With the driver turnover, and how we analyze things. When we take it to the second level, how you analyze things and really get a bigger bang for your buck for our company.

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Jay Wommack: I don’t know if that number’s accurate or not.

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Jay Wommack: I mean, those of us who’ve been in the industry for a long time, we’ve been in at 26 going on 27 years.

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Jay Wommack: We have heard, you know, $8,000 to $12,000 cost to replace a driver, you know, hire, acclimate, and lose a driver inside of 90 days. We’ve heard $8,000 to $12,000 for 20 years. I have no idea. I was on a conference call 2 days ago.

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Jay Wommack: Two days ago.

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Jay Wommack: with a gentleman out of Canada, and he said, oh, 5,000 to $15,000.

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Jay Wommack: So, I… but let’s just assume that’s the right number.

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Jay Wommack: So, let me talk about the hidden cost of turnover. In this slide, this is a very powerful slide.

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Jay Wommack: As a matter of fact, if I were y’all, I would ask to get a copy of this slide, because when I first saw this information, it was with a… at a Great West Symposium.

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Jay Wommack: And I asked them if they would share the slide with me. I asked them about 10 or 11 times, and they kept going, oh yeah, we’ll share that with you, and I never got the slide. I’ll be more than happy to share the slide with you.

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Jay Wommack: Take a real close look at this slide.

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Jay Wommack: Your first-year acc… by the way, Great Westlide, I believe, said 60-70% of the accidents that are at your company are caused by the first-year employee.

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Jay Wommack: Not first year driving a truck.

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Jay Wommack: first-year employee.

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Jay Wommack: I could go back and find the information that proved 50%. I talked to risk managers, I talked to underwriting directors, I’ve talked to operations people, and I’ve looked on the internet, and I’ve done my research. I can find 50% easily. That is still a high stat, so I want you to really think about this.

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Jay Wommack: I don’t care how much experience your driver has, they can… they could have driven for the last 3 years, 5 years, 10 years, 20 years.

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Jay Wommack: When they come to your company first, That first year.

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Jay Wommack: It is their behavior that causes the accidents, and they are… they are…

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Jay Wommack: outside of their element. They may have driven a Peterbilt for the last 5 years, but now you bring them into a Freightliner. They’re used to going to accounting in a different area. They are not in their comfort zone behaviorally.

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Jay Wommack: Now, what’s interesting about this graph.

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Jay Wommack: It’s not just truck drivers. Remember the gentleman I was sitting next to and talking to about ambulance drivers and helicopter pilots and airplane pilots? You know, they transport people, obviously, for the medical community globally. They had 30,000 employees. He confirmed his graph and said, that’s the same thing whether they’re driving an airplane, a helicopter.

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Jay Wommack: or a truck for the first time. This graph speaks volumes about what’s happening.

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Jay Wommack: So, turnover… Let’s link it back to turnover. Turnover has a lot to do

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Jay Wommack: With your accents, your safety record.

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Jay Wommack: And so all the safety director’s sitting out there going, yeah, you know.

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Jay Wommack: how do I get them to hire safer drivers?

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Jay Wommack: Well, it’s gotta be culturally, at the entire company level.

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Jay Wommack: And the entire company, from the C-suite, from the president, from the owner, all the way down to the janitor, needs to understand

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Jay Wommack: the mission, and needs to speak the same language, and the way you do that is to make sure everybody communicates in the same language. We have an issue around here right now. We’re wanting to find out.

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Jay Wommack: Yeah. What is 24-7, 365,

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Jay Wommack: people answering the telephone service actually mean. And we’re making sure that everybody is going to communicate it the exact same way at our company.

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Jay Wommack: And the only way you can do that

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Jay Wommack: It’s to make short, sweet, to the point, assignments and reminders, day in and day out.

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Jay Wommack: for the next 12 months, and everybody then will be on the same page. But if you look at this graph.

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Jay Wommack: This has everything to do with what’s happening in this industry. Now, I’ve put this graph side by side with… that’s our version of a bell curve, and it kind of looks like a 15-20 Chinese warrior, you know, a samurai warrior out there, but helmet, but…

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Jay Wommack: This is a bell curve.

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Jay Wommack: That graph is telling us 90%

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Jay Wommack: Of the trucks running up and down the road today.

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Jay Wommack: Are spending $18,000 on their auto liability, annually.

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Jay Wommack: Now, if you’re safer, you move to the left of the bell curve, and it’s going to be somewhere around $4,000 to $5,000, $6,000, particularly if you’re involved in a captive.

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Jay Wommack: If you’re not as safe, you move to the right side of the bell curve, and you’re looking at $30,000, $40,000. There are companies out there that are trying to keep their doors open, paying $35,000 to $40,000, or getting canceled.

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Jay Wommack: I want you to think about that number.

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Jay Wommack: And I want you to look at the graph on the left. Do you… can you connect the dots and see how closely related they are?

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Jay Wommack: If you don’t have a dynamic orientation.

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Jay Wommack: That makes people feel comfortable. If you don’t work on your attention.

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Jay Wommack: Then you’re going to see insurance rates go up.

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Jay Wommack: To me, this is very powerful.

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Jay Wommack: By the way.

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Jay Wommack: We actually have clients that have reduced, in this era, where their insurance rates are going up 12 to 48%.

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Jay Wommack: Annually.

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Jay Wommack: We have clients that are actually reducing their insurance cost.

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Jay Wommack: Now, those of you that self-insure, Doesn’t matter.

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Jay Wommack: People say to us, oh, we self-insure. My next question is, what’s your loss ratio? Because a loss ratio is what the insurance underwriters look at to determine how much they’re going to charge you.

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Jay Wommack: And if you’re doing your own underwriting, up to a certain point of time, you self-insure up to $2 million, $5 million, $10 million, whatever your number is.

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Jay Wommack: If you’re self-insuring, that means somebody in your company is looking at that loss ratio, and if you hire right.

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Jay Wommack: And you orient right, you can cut down that 50% number dramatically, and you can cut down your turnover rate.

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Jay Wommack: So, return on safety and action, make sure all of your people are on the same page.

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Jay Wommack: So, let’s talk about hiring, and the next slide I’m going to show you is probably the least important slide on the whole deck, but it’s critical for hiring.

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Jay Wommack: So here’s what I mean by red ocean hiring. The trucking industry, and webinars are not as good as live audiences, because live audiences, you can look at each other’s feedback, and you can feel from each other what they’re doing or not doing.

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Jay Wommack: But when I’m standing in front of a live audience talking about this, Red Ocean Hiring is

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Jay Wommack: do y’all know the difference between red ocean and blue ocean? Red ocean is,

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Jay Wommack: you know, you’ve been in the industry so long, you’ve been doing it the same way for so long, that now the sharks have figured out where all the fresh meat is, and they’ve just turned the water with everybody. Blue Ocean is when you’re doing something nobody else is doing.

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Jay Wommack: Well, if I start looking at recruiter advertising.

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Jay Wommack: You’re all offering the same thing.

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Jay Wommack: And when you stand in front of a group and you say, how many of y’all offer more home time? All the hands go up. How many of y’all offer more miles, you know, per month? All hands go up. How many of y’all… so…

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Jay Wommack: you’re creating a red ocean environment. What does that mean? That means that you’re creating your own driver turnover.

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Jay Wommack: So the first thing I would do on the questionnaire, the first thing I want to know about your… your practices after we get all the basics on any questionnaire of how big are you, the blah blah blah, your structure, how many recruiters, how many… how many dispatchers, all those types of things, I want to know what is unique about your company.

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Jay Wommack: What do you do that’s different? What is different from your company versus all the others? And you go, well, we’re all trucking companies. Yes, that’s true. However.

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Jay Wommack: Something you do is different.

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Jay Wommack: It could be what you haul, where you haul, how you haul. It could be if you’re… if you’re gonna…

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Jay Wommack: horse of a different color. And I’ll go to the next slide here in a second. I want to run through these real quick.

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Jay Wommack: Orientation.

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Jay Wommack: We’ve talked about the power of orientation. The first year drivers are causing the accidents, you’ve got to make sure that their safety behavior, their behavior at your company, that they psychologically feel like they are part of your environment from day one.

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Jay Wommack: And that is as simple, It’s making sure everybody knows their name.

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Jay Wommack: That is as simple as making sure that everybody smiles.

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Jay Wommack: Which, by the way, my wife accuses me of having kind of a resting bastard face, because I have that scowl, naturally.

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Jay Wommack: But… Always smile, and, and, you know.

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Jay Wommack: I feed from my own trough. We have new employees here, and I smile big and learn their names, and I welcome them in the company.

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Jay Wommack: And when you’re walking around the hallways, you just make sure people… it is the simple little things. This is… look.

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Jay Wommack: It’s simple.

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Jay Wommack: Clarify and simplify. That is how you win.

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Jay Wommack: Let’s talk about dispatcher. Who talks to your driver? See, drivers… employees don’t leave companies. They leave bad managers, they leave bad conversations.

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Jay Wommack: Let that sink in. Who talks to your people?

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Jay Wommack: Dispatchers. And it’s even worse nowadays. They bang out on the keyboard.

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Jay Wommack: They’re sitting there banging out on that keyboard, and if they don’t put a smiling emoji, or a heart emoji, or a ha-ha.

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Jay Wommack: Then that can be taken any way the driver wants to take it.

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Jay Wommack: If you’re not keeping numbers, if you’re not training.

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Jay Wommack: If you’re not making sure that your dispatchers

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Jay Wommack: are using, I’m gonna quote-unquote and show my age here, the Dale Carnegie of Dispatcher Training, you know, how to win friends and influence people.

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Jay Wommack: If you don’t have them doing that.

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Jay Wommack: Then you are missing the boat.

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Jay Wommack: Because that keys into your turnover rate, that keys into your accidents, that keys into your insurance.

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Jay Wommack: We were the first ones that came out. We hired Dan Baker. I don’t know how many of y’all remember Dan Baker. You know, 10 years ago, I said Dan Baker, and 90% of the people in the room knew who he was. Last week, I was in Miami, and I made a presentation to 11 companies. Only 2 people knew who Dan Baker was. Dan…

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Jay Wommack: was a tremendous personality in the trucking industry. Did more good for driver relationship with companies than anybody out there, and we hired Dan to put together a 52-week program

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Jay Wommack: To teach dispatchers how to be friendlier.

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Jay Wommack: And it worked so well, we did 3 years’ worth of program. And it worked so well that we are redoing the entire program right now to make it modern, and to make it with… with the,

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Jay Wommack: the keyboard, the emojis, the fun stuff that we have to do nowadays to make sure that these younger generation of new drivers that are coming in, that we can actually communicate properly with them and adapt the Dale Carnegie to the new generation.

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Jay Wommack: 401K.

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Jay Wommack: I asked this question, and out of about 600 people that I’ve pitched this to.

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Jay Wommack: I’ve probably only had about 4 or 5, generally from the HR department that know the number.

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Jay Wommack: How many people, how many of your drivers, how many of your employees participate? What percent participate in the 401K?

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Jay Wommack: Do you promote the 401K? Do you educate them about the 401K? Do you tell them that if they start with you at age 23, 25, and they participate in the 401K, and they put that money away, and with your match, over the next 25 years, they can become a millionaire? Do you train them in those areas to make them want to stay with you?

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Jay Wommack: Most people cannot answer what percentage of their fleet or drivers are involved in the 401 .

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Jay Wommack: Why is it critical?

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Jay Wommack: Because once somebody gets involved in the 401K, they are 35% less likely to leave your company.

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Jay Wommack: Do you see the power of communication from department to department to department on the same page?

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Jay Wommack: Safety directors, their KPIs are CSA scores.

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Jay Wommack: Yeah, the C-suite’s KPI is, are we making money or not?

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Jay Wommack: The recruiting director’s KPI is basically, you know, how many empty trucks do I have?

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Jay Wommack: HR is how many people are involved in the 401K.

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Jay Wommack: How many people can we… can we make sure the benefits are there?

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Jay Wommack: Do you see how all of this comes into play to retain your fleet, to retain your drivers, and cut your cost over time? By the way, all of the studies, go back to the fuel example.

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Jay Wommack: All of the studies.

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Jay Wommack: Show.

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Jay Wommack: That if you want to reduce your accidents, Drive more fuel efficiently.

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Jay Wommack: A fuel-efficient driver, based on all of the studies, and I can pull the studies up for you if you want me to.

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Jay Wommack: Based on all of the studies, Have less accidents.

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Jay Wommack: Fuel-efficient drivers, have less accidents. You kill two birds with one stone.

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Jay Wommack: You get more fuel efficiency, And you cut down on your accidents.

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Jay Wommack: And you improve your bottom line.

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Jay Wommack: See, one of my big complaints about the industry

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Jay Wommack: We’re spending all this money on technology.

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Jay Wommack: And it’s the behavior of your employees that makes all the difference in the world. And that comes down to

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Jay Wommack: All of this comes down to culture.

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Jay Wommack: Culture is critical.

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Jay Wommack: you know, Dan Baker, who I’ll… who… who… I love Dan Baker, and he used to tell the story about J.B. Hunt, and… and, you know, I’m not picking on J.B. Hunt.

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Jay Wommack: But Dan used to tell the story about J.B. Hunt. They get a brand new driver, they bring him in there, they put him on orientation, and this… this brand new driver, he’s gone through the driver test, he’s gone through orientation, he’s really proud, he jumps in that truck, and he takes off down the road, and he’s putting his miles in, and he’s got on that JB Hunt t-shirt and that J.B. Hunt cap.

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Jay Wommack: And he is all excited about working for J.B. Hunt.

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Jay Wommack: And he pulls in that first truck stop over there, and he is full of the J.B. Hunt story and the J.B. Hunt culture, and he’s… he’s really excited. He’s got that smile on his face, he’s got a whole new career, and he walks in, and there’s 3 old JB Hunt drivers sitting over there, and they look at him, and they say, hey, we can tell by that hat and that t-shirt that you’re brand new at J.B. Hunt. Come over here.

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Jay Wommack: And let us tell you what it’s really like at this company.

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Jay Wommack: That has everything to do with culture and messaging from the top down. And when I say top down, I mean all the way down.

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Jay Wommack: All the way down to the janitor.

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Jay Wommack: When we have contests in our company, we make sure every employee knows who we are and what we do.

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Jay Wommack: What is our talking point? What is our elevator pitch?

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Jay Wommack: That is what we drill into our people. And we have games to do it with. We’ve gamified our system. We have games to do all this stuff with.

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Jay Wommack: If it’s not embedded, and if the top doesn’t do it, we’ve got a couple of CEOs and presidents of companies on this call, if y’all aren’t doing it, your company’s not going to do it.

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Jay Wommack: It is that simple.

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Jay Wommack: If you’re not doing… if your leadership’s not doing it, they’re not gonna do it.

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Jay Wommack: So, this is the least important slide in the entire presentation, six human needs. If you’ll get your HR department, your recruiting department, to really take a look at this, if they want to call us and ask us more about this, we’ll go into more detail with them.

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Jay Wommack: But every human being in the world has 6 basic human needs. I don’t care what language you speak, I don’t care what culture you’re from, we all speak these same… we all have the 6 same human needs. Now, we rank them differently

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Jay Wommack: But I want you to think about red ocean, blue ocean right now.

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Jay Wommack: If you’re saying more miles, And you’re trying to hire drivers that have certainty as their number one value.

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Jay Wommack: Do you think they’re gonna stay?

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Jay Wommack: You’re better off, if you have an average of 9,200 miles per month, you’re better off

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Jay Wommack: recruiting drivers with certainty by saying, we guarantee you 8,300 miles a month. And if they get 9,200, great, that’s a nice, pleasant surprise.

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Jay Wommack: But if you’ll start thinking about

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Jay Wommack: If significance is your number one or number two.

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Jay Wommack: then how do you reward your drivers? And I’m not talking about financial, and I’m not talking about… I’m talking about attaboys. I’m talking about, hey, hey, girl, you did a really good job out there. I’m talking about patting them on the back, recognizing what does your culture say about your retention?

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Jay Wommack: So, learn what these are.

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Jay Wommack: And generally, this slide for safety directors doesn’t mean as much, for CEOs doesn’t mean as much, but all the HR and the recruiting people that see this, most of them want a copy of the slide, and they want to go use that and start talking about this. This is really powerful information for that particular department.

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Jay Wommack: 401K participation, 35% improvement in… and this is in the trucking industry. 35% improvement in the turnover rate for the people that are actually participants versus non-participants. Be glad to share this entire slideshow with y’all.

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Jay Wommack: I referenced earlier, That we had a client.

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Jay Wommack: We have clients, numerous clients. This client was on the verge of going out of business, and they let us do a case study on them. They were on the verge of not being insured.

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Jay Wommack: And they basically came and said, help, what do we do? Well, we have a protocol. Our protocol is real simple.

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Jay Wommack: And I will actually… anyone that wants to have a conversation, I’ll give you a money-back guarantee if you follow our protocol, that you will see improvement in your safety. You will see improvement in your P&L and your balance sheet, if you follow our protocol. And our protocol is simple.

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Jay Wommack: It is really simple.

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Jay Wommack: See, I like simplify and clarify, and that’s what makes it work.

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Jay Wommack: That’s what makes execution possible.

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Jay Wommack: Simplify and clarify. Our protocol is real simple.

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Jay Wommack: You need to assign One…

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Jay Wommack: video training session per week, and you go, oh, one a week? That’s way too much. No.

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Jay Wommack: Short and sweet and to the point.

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Jay Wommack: Ours averaged less than 6 or 7 minutes a week.

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Jay Wommack: But it’s the 15-year-old son story. You’re reminding them over and over and over again. Logistics Warehouse? That’s what they did. In 5 years, they joined a captive. They went from on the verge of not being insurable and out of business.

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Jay Wommack: in a captive in 5 years. And anyone that tells you that you cannot… that you can go do this overnight, you can’t. It’s going to take time to get into a captive. It’s going to take time to get the underwriters to buy into it. It’s going to take time. Now, if you’re self-insuring, you can start seeing some results immediately.

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Jay Wommack: you start putting the fuel efficiency program into place, you know, reach out to us. I can walk you through, whether you’re using us or not, I can walk you through how to do this.

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Jay Wommack: Our objective is to educate the marketplace, and we feel like if we educate the marketplace, that we will get more and more people to join our company, because we are thought leaders in the industry.

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Jay Wommack: I just want you to think different.

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Jay Wommack: Make your safety capital productive.

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Jay Wommack: I just showed you a path that we walked down.

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Jay Wommack: to reduce accidents, and it’s 5 or 6 different areas. It’s not just on the safety director. It’s on the recruiting director. It’s on the C-suite. It’s on recruiting. It’s on maintenance. We haven’t even talked about maintenance. One of the things, when Tony improved his operating ratio so much.

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Jay Wommack: He spent hours pouring through the maintenance records, and then we would go in and start training.

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Jay Wommack: I’m not a maintenance guy.

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Jay Wommack: So, when we first walked into one company up in New York, and they had a 13-point check that they wanted to do.

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Jay Wommack: on a battery? I was shocked.

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Jay Wommack: I kind of look at it, make sure there’s water in it, and see if it’s charged.

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Jay Wommack: 13 points is what they had. Another company had 17 points on a battery. Every company

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Jay Wommack: You may be in transportation, and 90% of you may be the same, but every company has something that’s different about you, that’s different about the way you operate, and it needs to be embedded into your culture.

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Jay Wommack: So, think different. Make your safety capital productive, and that’s what we do better than anybody else, because we invented the way to make safety pay.

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Jay Wommack: That is not just a line item here. That is not just a saying here. We actually buy into that, we believe it, we do it ourselves. Remember that $12,000 story? I’ll go into more detail of that one if anyone wants to call me on the side.

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Jay Wommack: We’re about to wrap it up, because I don’t like long shows.

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Jay Wommack: The biggest obstacle.

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Jay Wommack: Between what is, And what ought to be. And I want you to think about your own personal life.

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Jay Wommack: as well as your company, as well as your department, the biggest obstacle

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Jay Wommack: Between what is and what ought to be is execution.

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Jay Wommack: That’s what we do better than anybody else. We have 24-7… right now we don’t, but we will, within the next 4 weeks, have 24-7, 365 real people answering the telephone.

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Jay Wommack: So that your people have no excuses.

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Jay Wommack: Execution. Our client service is second to none. They pick up the phone. They know that if your people don’t participate, you do not get results.

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Jay Wommack: Our client service reaches out to your people.

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Jay Wommack: And they make sure

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Jay Wommack: Our system’s intuitive. It’s as simple as 1, 2, and 3. You can operate it yourself.

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Jay Wommack: However, our clients Get a call every 2 weeks.

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Jay Wommack: They get communicated with the way you want to be communicated with, And you are kept informed.

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Jay Wommack: Simple as 1, 2, 3 is, can you create an assignment?

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Jay Wommack: Can you create a user? Can you create an assignment? Can you… can you assign it and look at the records to see if they’ve done it? That’s as simple as it gets to get started with, and our people walk you through that, hold your hand through it, or you can do it yourselves.

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Jay Wommack: Execution, execution, execution.

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Jay Wommack: That is what makes us number one for return on safety. So here’s my final Slide.

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Jay Wommack: It is time to execute. Identify, model, and deploy with our system. Here’s my shameless ad now. If you’re a prospect.

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Jay Wommack: Text me, and we will give you a free trial.

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Jay Wommack: No questions asked. We will plug you in, we will let you on the system, we will put you up on it, we will download all of your people, we will do whatever you want to do, we will let you have full access to it.

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Jay Wommack: for 30 days.

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Jay Wommack: No risk.

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Jay Wommack: You get to kick the tires and see the deal.

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Jay Wommack: If you’re one of our existing clients.

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Jay Wommack: Text me for a detailed questionnaire to uncover what are your top 3 areas to improve through better training.

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Jay Wommack: We have a questionnaire, and that questionnaire is… once, like I said, I alluded to it earlier, once we go through the basics of that questionnaire of who are you, what’s the size, how many dispatchers, how many recruiting people, how many truck drivers, do you run tandems, do you run teams, where do you run? All those types of things, how many terminals, what do you haul, what…

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Jay Wommack: Once we get through the basics, Then we start to uncover.

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Jay Wommack: What kind of records do you keep?

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Jay Wommack: What is your fuel efficiency? What are your CSA scores looking like? What do you need to prove on the most?

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Jay Wommack: Where are you hemorrhaging money?

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Jay Wommack: Can you picture your best Mechanic.

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Jay Wommack: How do we model that mechanic? See, one of the things Tony did that we learned from was he poured through the amount of time it took them to go repair a transmission.

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Jay Wommack: And if it was 12 hours, he would bonce the people that could do it effectively and efficiently in 10 hours, and he trained up the ones that were taking 13 or 14 hours, and trained them up or got them out. Now, nowadays, you and I both know that mechanics are so hard to come by, you have to train them up, because you cannot afford to get rid of a mechanic.

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Jay Wommack: So, this is our call to action. This is our shameless ad.

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Jay Wommack: Text me for the free trial.

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Jay Wommack: And existing clients text me for the detailed questionnaire.

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Jay Wommack: Or actually, call me and I’ll walk you through it.

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Jay Wommack: Lydia, do we have any questions? Do we need to, do anything before we wrap it up?

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Lydia Wommack: From the mornings, but that is Jay’s real cell phone number, so, you know…

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Lydia Wommack: Take advantage. Text him, call him.

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Lydia Wommack: And I’ll… I’ll come take the phone away if we need to get him back to work. Everyone, thank you so much for joining us this morning. Like I mentioned before, we’ll send the replay. We’d love to hear from you. This is actually a really fun process for us to get in and help identify and model, because it’s what we do best, it’s what we do well, to set up the

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Lydia Wommack: these kind of model training plans that really focus on an area that’s gonna have a big impact. We like results, so it’s… it’s fun for us over here. So we’d love to take a look with you, but, you know, barring that.

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Lydia Wommack: it’s such a good practice for you to do within your company, and it’s hard to get all departments together, but it is so worth it. The Tony story alone, you know, $830,000 in one year in one area, one small area of the company.

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Lydia Wommack: See you on the next one. Take care.

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Jay Wommack: Thank y’all.