Not every trucking company experiences high turnover. But why is that? According to the American Trucking Associations (ATA) show small truckload fleet turnover has consistently hovered anywhere from 70% to 80% over the last several years. But not every fleet sees these kind of attrition numbers. Let’s have a look at why that is.
What Are Truckers Concerned About?
The truck driver shortage and truck driver retention are consistently two top issues among trucking companies. Just look at the ATA’s annual Top Industry Issues survey. But if you look at the survey of commercial truck driver concerns and you can see where the opportunity lies. Their top issues are truck driver pay, truck parking, and excessive detention and/or delay time at shipping facilities.
While there is opportunity in truck driver pay, fixing the issue goes beyond simply raising per-mile rates. Trucking companies who want to improve their compensation plans to attract truck drivers need to address the specific pain points these truck drivers suffer from. You need to ensure you aren’t just filling a complaint, you need to specifically address issues your truck drivers care about.
It just so happens one of the biggest complaints centers around the traditional mileage-based pay plan. On mileage-based pay plans, truck drivers go unpaid or underpaid for situations they have no control over. There is nothing that turns a truck driver off more than being unable to haul a load and be productive.
The number of loads means little to a truck driver if they cannot haul those loads. If a trucker runs nine loads in a week, but it only gives him 1,800 miles, under a mileage-based pay system they will lose money. As a result, fleet managers have been turning to more innovative ways to pay their truck drivers.
Guaranteed Pay for Truck Drivers
One of the main complaints truck drivers have about mileage-based pay is that their checks are not predictable. They simply cannot count on knowing how much they make at any given moment. From week to week, pay can be slashed by forces outside of the trucker’s control. If the truck breaks down or they have to pull over for any reason, they lose money.
Now, trucking companies are looking at options like guaranteed pay for truck drivers. Guaranteed pay salary programs generally have different tiers depending on truck driver performance. Fleets on this type of pay program generally set a minimum set of miles for over-the-road fleets. Smart fleet managers will generally offer a guaranteed minimum, but they want their truck drivers to make more money. The more money they make, the happier they are.
Truck drivers will typically need to make themselves available for dispatch during the week to qualify. Other programs allow truck drivers to take a day off up to five times per year and still be eligible for a minimum pay guarantee. In many cases, a pay guarantee will still have productivity or performance requirements built into the program.
Changes to Hourly Pay and Downtime
Thanks to the electronic logging device mandate, fleet managers can now pay their truck drivers by the hour if they want to. The ELD can now operate as a truck driver’s time clock. As such, the truck driver can be paid for each hour they are on duty, no matter what they are doing. Long-haul truckers can be paid via a mixture of miles driven and hours worked.
Long-haul truckers find it more difficult to work by the hour, so trucking companies can do something like provide them a guaranteed two hours at pick up no matter how long it takes. Anything over the two hours can then go on the clock.
Hybrid pay models are becoming more popular by the day. It allows truck drivers to still be motivated by productivity incentives while companies can still ensure guaranteed pay. That’s why trucking companies are modifying previously inflexible policies is by paying for downtime. For truck drivers who are stuck in detention or downtime, whether it be a breakdown or unloading or loading, companies offer guaranteed pay.
An example of how this might work is that they could get paid a $20 flat fee for loading or unloading whether it takes 10 minutes or 45 minutes. This way, if a truck driver turns 10 loads per week and only runs 1,700 miles, they still have a strong chance of making good money.
The detention time issue has become an intractable one. One MIT study found that truck drivers only spend an average of 6.5 hours per day of driving, even though they are allotted 11 hours. That means that nearly half their time on the road is spent sitting and not driving. Imagine if they are being paid strictly by the mile. It’s simply not fair.
The Best Way to Handle Layovers and Breakdowns
What happens when truck drivers must wait for a load is a sticking point for fleet managers and truck drivers alike. What companies pay for layovers is often a fraction of what truck drivers would normally make in a day. Trucking companies want to make sure they keep pay consistent. Paying for layover or downtime is also referred to as ‘dwell pay.’
The typical dwell pay program will be set up to where if dispatch doesn’t have a truck driver heading to the next load within an hour of the driver calling in that he’s empty, that driver then gets a dwell pay bonus of $100. Those monetary awards can be customized to the trucking company.
Another form of breakdown that is out of a trucker’s control are maintenance breakdowns. Thanks to parts shortages and supply chain problems, maintenance downtime is more prevalent than ever before. Make sure your downtime policies properly compensate your truck drivers. Consider paying your truck driver regardless of whether the vehicle is broken down or not. Or you could pay flat bonuses after a certain time.
Sleeper berth pay is another method used by smart fleet managers. When the truck drivers are away from home, federal rules require they spend a certain amount of time in their sleeper berth. One option is to pay them for that time just as if it were an unexpected layover or maintenance event. Consider it human maintenance time!
There are plenty of ways to recognize and help your truck drivers. Consider reimbursing them for paid parking or paying for their internet or cell phone service, especially if they use their phone or internet while they are on the road. Pay directly for any extras. Truck drivers notice these things and appreciate their fleet managers for doing them.
Use Time Off to Your Advantage
Paid leave among companies with large ranges from five days to 45 days. It certainly is a wide range. The number varies by company and type of work, but paid time off for truck drivers is traditionally compensated at a lower rate than base pay. Many truck drivers choose to take the cash for their paid leave instead of actually taking time off. Should they take the time off?
Trucking companies should consider paying time off at the same rate as trucker pay. This shows truck drivers that management cares about their time and wants to give them enough time to truly decompress from the job. Vacation pay that closely matches a truck driver’s earnings will cut down on them forgoing a vacation simply because they want to make more money.
Whether truck drivers admit it or not, they want to take a vacation, get out of the truck, and spend some time with their family. They sometimes need just a little push to do so. Consider offering up to three paid weeks of vacation at a driver’s five-year anniversary, and maybe five weeks on their 10-year anniversary.
Some trucking companies are also experimenting with loyalty pay, which truck drivers can use to compensate for time off. Perhaps you could offer them a week’s worth of extra pay at the end of their first year, two weeks in their second year, three in their third year, and so on. This way they aren’t hit with a big loss in income when time off rolls around.
In the end, the best pay package in the world won’t help you recruit and retain truck drivers if you are not properly communicating with them. Don’t hesitate to enact policies that satisfy them and make sure you clearly let them know.