Interview with a Successful LPG Dealer on Hiring and Retention Strategies

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Q: The LPG industry faces challenges in recruiting, hiring, and retaining good employees. Can you share some of the ways your company has been successful in addressing these challenges, as well as ongoing struggles?

A: At a recent advisory board meeting, I had the opportunity to meet with other propane and diesel marketers like myself. One of the most common issues raised was the challenge of finding good employees. Some of my colleagues are working on lowering the CDL (Commercial Driver’s License) age in their states as a potential solution, but I disagreed. I believe the answer doesn’t lie in changing regulations but in being a force for change within our own organizations.

My Take: Many companies in the transportation industry are looking for external changes, like lowering the CDL age, to widen the pool of eligible drivers. However, this CEO emphasizes the importance of internal solutions. By proactively developing programs and improving recruitment and retention strategies from within, companies can address workforce challenges sustainably, without waiting for policy changes.

Q: What specific strategies has your company implemented to address hiring challenges, especially with an aging workforce?

A: One of the key strategies we implemented was creating our own CDL driving school. PERC offers a fantastic program that even provides a transcript for those who complete the training. This allows us to train drivers from scratch, so we aren’t dependent on the limited pool of available CDL holders.

My Take: Creating an in-house CDL driving school is an innovative way to address the driver shortage. It enables the company to build a pipeline of qualified drivers tailored to its needs. The PERC program ensures that trainees receive top-notch education, and the transcript serves as a valuable credential. This strategy benefits both the company and new drivers by reducing competition for existing talent and providing a clear pathway to a career.

Q: Beyond creating your own driving school, have you partnered with any external organizations to help with recruitment?

A: Yes, we actively reach out to local CDL driving schools. We inform them about all our locations and provide a detailed description of our business. This helps attract potential recruits and keeps us on their radar when their students graduate.

My Take: Partnering with local CDL schools is an excellent way to ensure a steady flow of new talent. By building relationships with these institutions, the company becomes a preferred employer for recent graduates. This proactive approach saves time and resources in recruiting while ensuring a consistent pipeline of qualified candidates.

Q: Retention is just as important as recruitment. What creative methods have you used to retain employees, especially in management roles?

A: We’ve used creative incentives for some of our management staff, such as offering incentiveslike life insurance policies that we own. After an agreed-upon time, these policies transfer into the employees’ names. It’s been a powerful retention tool for us.

My Take: Offering life insurance policies as a retention strategy is a unique and effective approach. These incentives provide employees with a long-term incentive to stay with the company. By transferring ownership of the policy after a set period, the company shows it values its employees and is committed to their future. This strategy fosters loyalty and reduces turnover, particularly in key leadership roles.

Q: Have you implemented flexible scheduling options to help employees balance work and personal commitments?

A: Yes, we have implemented flexible scheduling options that allow our employees to fit their work around personal commitments, including attending all of their children’s activities.

My Take: Flexible scheduling is a major draw for employees, especially those with families. By allowing workers to adjust their schedules to meet personal needs, the company creates a supportive and employee-focused work environment. This not only reduces stress but also improves job satisfaction and loyalty, making the company an appealing option for potential hires.

Q: Do you have any mentorship programs to support new hires?

A: Yes, we have a mentorship program that pairs experienced drivers with new hires, helping pass down valuable knowledge to the next generation.

My Take: Mentorship programs are a proven way to onboard and support new employees. By pairing them with experienced staff, the company ensures that critical knowledge and skills are passed down effectively. This program also fosters strong relationships and a sense of belonging, which can lead to improved performance and retention.

Q: What kind of health and wellness programs do you offer to employees?

A: We have a gym at our main location and offer gym memberships to employees and their families. However, we’ve noticed not many employees are utilizing this benefit.

My Take: Providing access to fitness facilities shows the company’s commitment to employee health. While participation has been lower than expected, this presents an opportunity to promote these resources through awareness campaigns, wellness challenges, or incentives. Encouraging wellness can lead to healthier, more energized employees, benefiting both the workforce and the company.

Q: Are there any financial planning or retirement benefits available to employees?

A: Yes, our 401(k) program includes free financial planning consultations. Employees who have taken advantage of this view it as a significant benefit.

My Take: Financial planning services are a valuable addition to any retirement plan. They help employees feel more secure about their long-term financial health, which can improve job satisfaction and loyalty. By promoting this benefit more widely, the company can increase participation and retention.

Q: Are there any other challenges you’re still working to overcome in terms of recruitment or retention?

A: While we’ve made great strides with these strategies, we are still working on making sure we’re appealing to younger generations who may not be aware of the opportunities in the LPG industry. It’s an ongoing challenge to reach out to this group and show them that this is a stable and rewarding career path.

My Take: Attracting younger workers is a common challenge in many industries, including LPG. To address this, companies may need to focus on outreach efforts like social media campaigns, highlighting career growth opportunities, competitive pay, and long-term stability. These efforts can help position the industry as a viable and appealing career choice for younger candidates.



Heritage Insurance: Expertise in the LPG Industry
At Heritage Insurance, we understand the unique challenges and opportunities within the LPG industry. From navigating workforce retention strategies to ensuring comprehensive coverage for your operations, we’ve built a deep knowledge base to support businesses like yours. Whether you’re exploring ways to grow your team, protect your assets, or ensure compliance with industry regulations, our team is here to provide clear, practical guidance.

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