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After a period of railroad mergers and streamlining, the U.S. railroad industry is currently experiencing significant demand for its services. At the same time, the industry has an aging workforce and a large number of employees are retiring. The following study, An Examination of Employee Recruitment and Retention in the U.S Railroad Industry, examines the challenges involved in recruiting and retaining qualified railroad workers to (1) replace the large number of operating employees who recently retired or who will be reaching retirement in the next several years and (2) meet the current and forecasted increase in demand for freight transportation service. Representatives from U.S. Class I freight railroads participated in structured interviews and 56 railroad employees, representing 5 different labor unions, participated in focus groups in 3 different cities across the United States.

The study found that major challenges or barriers to recruiting new railroad employees include railroad work schedules, an incremental pay rate system for some crafts, and finding individuals with the right skill sets for the job. Major challenges to retaining employees include reducing the need to relocate employees, reducing or eliminating furloughs, providing a realistic job preview during the hiring process, and improving work schedules. One significant success in railroad recruitment has been the use of the internet as a recruitment tool. Referrals from existing employees have also been a source of many new hires. The industry has also found partnering with or hiring from the U.S. Military and the National Academy of Railroad Sciences advantageous. The fact that railroads offer job variety, good pay and benefits, job security and the ability to work independently with minimal direct supervision are positive factors in recruitment and retention.

The Federal Railroad Administration’s Office of Policy and Program Development sponsored the following document.

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