lease purchase trucking company

Recruiters work hard to find the best candidates for their open jobs. Using all available resources, recruiters need to need to differentiate their job postings from others that might be very similar. So it’s important to find out what your potential drivers are looking for in a new job and what can help your company stand out from the others. In some cases, it takes more than just switching up your recruiting tactics. Sometimes it means adding a new lane to your business strategy. Perhaps becoming a lease purchase company is something worthwhile to attract new drivers?

The Basics

Many CDL drivers are looking to advance their careers by owning their own trucks. Often, these drivers need some support with buying the truck in the first place. However, this is a big step for a driver and requires a significant financial investment up-front. Lease purchase agreements can be a great solution! If your company owns a number of trucks and is willing to get into the business of selling them through lease payments to drivers, this model might work for you. And if so, this is where you start setting up your strategy to enter this new aspect of your business.

This type of arrangement can bring in new leads for your recruiting efforts, as many drivers are interested in becoming an owner operator someday.

But it also adds a level of complexity to your business. It’s essentially having a small business within a business, as the drivers are seeking to become their own company with its own vehicle.

Rules and Regulations

Becoming a lease purchase company requires a carrier to follow a set of federal guidelines that spell out all of the considerations of leasing. These rules inform all aspects of the leasing agreements. When drawing up all the various policies, paperwork, and contracts needed to lease trucks to your drivers, it’s important to understand the regulations that come with these transactions.

Transparency

lease purchase agreementThere are plenty of opportunities to market that your company is a lease purchase trucking company. As mentioned earlier, it’s a great way to differentiate yourself from the competition. And unfortunately, it is also potentially an opportunity for carriers to put out deceptive marketing messages—ones that might make it seem that it’s an easy way for a driver to become an owner.

The federal truth in leasing laws have been put in place to protect drivers and carriers entering into a lease agreement. These laws ensure transparency on all aspects of the lease.

These regulations ensure that nobody is less than transparent when it comes to these types of purchase agreements. So be sure to be clear and forthcoming on every aspect of the deal. That includes the terms, the payment schedules and all of the specific details of the lease. This will help you avoid any confusion later, or worse, lawsuits.

Risk

There is a level of risk associated with becoming a lease purchase trucking company. There’s always a hope that everything goes right, but sometimes things do go wrong.

All of the deal points of the lease agreement can be as specific as possible, and everyone can enter into the agreement hoping things run smoothly. But, that’s unfortunately not always the case.

The driver might not be able to keep up with the payments, and then they’re put in a position of needing to reclaim the truck. Additionally, the driver might unfortunately have an accident with the truck while it’s still under lease and not fully owned. This has implications on the lease company as well, if the driver can’t cover the costs to repair. Throughout the lease period, the carrier has an interest that the proper insurance and maintenance is being done on the leased vehicle.

Do Your Homework

Knowing what your potential drivers are looking for, helps you develop the best set of tools to recruit the best candidates. As your company grows and expands your recruitment efforts, it might be worth looking into becoming a lease purchase trucking company. This can bring in new leads to your hiring office, and new revenue streams to benefit your bottom line. But it is also a complex business, with a decent amount of risk involved. As with most things, it’s good to do your homework to make sure you make the right decision.

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Ultimate Guide to Truck Driver Recruiting

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3 Truck Driver Awards to Give Out This Year

People generally like to be recognized for their achievements. Professional truck drivers are no exception to that rule. Truckers can be rewarded in several different ways. Some drivers respond strongly to financial rewards. Other drivers respond better to being recognized as a standout among their peers. Here are 3 different types of truck driver awards to give out this year.

1. Driver of the Year

Many companies take great lengths to find out who their super star employees are and hope to retain them. But do you have someone who’s awarded as the best? Give out a coveted “Truck Driver of the Year” award each year. Select one driver to single out as exceptional among your whole team. He or she should be a driver who is the best example of your company culture, always displays professionalism, excels at customer satisfaction, and puts safety first. And make a big deal about it. Give them a prestigious award in front of the whole company! Be sure to put these in a prominent place so that others can aspire to this someday.

To make this more inclusive, you can create campaigns to nominate drivers for consideration. Have a team to vet your finalists and be sure to have the rules fair across your whole pool of drivers. Truck driver awards like these can be wonderful tools to help drivers strive to be the best, and ultimately want to stay with your company for a long time.

2. Million Mile Safety Clubs

Many carriers choose to recognize dedication and permanence in their drivers. Million Mile Clubs are a fantastic way to show your appreciation to those drivers. The drivers who put in the time, mile by mile, year after year, should be rewarded for their loyalty and commitment to their careers. The drivers that covered that many miles safely deserve the recognition for their respect for themselves, their cargo, and also for the other drivers on the road. A special trophy engraved with their name and the date, and the number of miles makes for a great keepsake for any long-time driver. Have something even more special for those drivers who achieve this milestone more than once.

3. Recognition Boards

The little things matter too. Catch someone doing an excellent job on any given day. Then recognize them right away by putting a small certificate on their locker or on a bulletin board in a public area. Or post a quick note of recognition for everyone to see on your employee intranet. These types of truck driver awards and recognition can make your drivers feel special on any given day for any reason. And they’ll feel proud to be a part of your organization.

Driver appreciation can and should be a year-round activity. After all, appreciation is a key component of driver retention. So no matter if your a recruiter, dispatcher, fleet manager, or executive, take some time to show your drivers how much you and your company value them.

Sometimes small gestures of appreciation can go a long way to let your truckers know that you’re thankful for them. Provide some company branded gear to wear on the job. Or give out other small tokens that show driver appreciation. These small things can be a boost to someone’s dedication to your company.

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simplifying truck driver pay

Truck driver pay is one of the biggest factors which candidates consider before accepting a trucking job. Carriers are aware of this, and recruiters scramble to offer the best salary they can to their drivers. But the driver pay numbers aren’t the only important thing to consider. Driver compensation rates have actually increased over the last few years. Yet, carriers struggle to retain drivers over the long haul. The truth is, how you pay truck drivers is just as important as how much you pay them. If your truck driver pay process is messy, complicated, and not transparent, drivers will find it difficult to work with you. Here are 3 tips on simplifying truck driver pay.

direct depositTip 1: Clean and simple

How difficult is it for the average driver to understand your pay rates? Does it require a five-minute explanation with a calculator? If so, you’re making the pay structure too complicated. While there are many factors which determine driver pay, if the process becomes too messy drivers won’t want to deal with it. Similarly, how difficult is it for drivers to actually get that paycheck? Filling out complicated and unnecessary forms is a burden for drivers, who have limited free time as it is. Remember that most salaried employees simply receive a direct deposit in their bank account every 2 weeks or so. Recruiters and managers should aim to make the pay process as simple as that, if possible.

As Einstein once said, “Everything should be made as simple as possible, but not simpler.”

Equally troubling is the hassle of delayed payments. If there are delays in paychecks because of clerical or logistical error, the inconvenience shouldn’t be passed along to the driver. For them, the few days could make the difference between paid and unpaid bills or purchase of time-sensitive medicine. Do whatever you can to make delayed payments less likely. Updating your pay systems reduce the chances of human error and make it more likely that payments will be made on time. You don’t want drivers to consider leaving your fleet because every pay period remains uncertain, or they can’t decipher their pay stub.

Tip 2: Load board transparency

employee value proposition

Drivers get paid based on how many loads they get assigned or agree to take on. Sometimes dispatchers or fleet managers will think that drivers will be happier with their pay if they just took on more loads. Simple, right? While that may be true, think about it from the driver’s perspective for a minute. Often truck drivers may think that other drivers are receiving more or better loads because of favoritism. When was the last time you spoke to a driver who was happy with the loads they receive? There is such a gap between manager perspective and driver perspective on this issue that the only way to bridge it is more transparency.

When it comes to favoritism, perception is more important than reality.

Try to create a system where drivers are fully aware of who has received which loads and when. This helps both drivers and managers. Any unconscious favoritism or bias will be filtered out and less likely to occur. Drivers will also be less likely to perceive favoritism, as you’ve taken steps to counter this. Think of how scientists create double blind studies, or some professors use proctors to grade their exams. Students know that bias is less likely to creep in, so they trust the system more. Similarly, if you create a transparent process on load assignment, you will create perceived equity and fairness in truck driver pay. Drivers are liable to quit because of perceived bias, even if it doesn’t actually exist!

snowy roadsTip 3: Uncontrollable factors

Truck drivers make money when they’re being productive driving or loading and unloading freight. However, there are many other things that happen during a driver’s work-day that may affect their productivity or their paycheck. Unnecessary idle time, traffic delays, adverse weather conditions, and human error all reduce truck driver pay. Everyone in the industry knows that these things happen and are usually an unavoidable part of the job. Most of these factors are also out of a driver’s control. Yet, the driver loses time, and possibly pay, because of weather and traffic and that isn’t going to look great to them!

While weather, traffic, and other variables may be out of your control also, they shouldn’t be reflected in driver pay

We know that every carrier’s finances are different, and some can afford more luxuries for their drivers than others. If possible, do whatever you can to not pass the cost of these factors to drivers. It will seriously make driver reconsider their employment. Maybe charge for clients for the unnecessary delays and pass it on to your drivers. A promise of guaranteed payments will ensure that drivers don’t have anxiety over delays. Many carriers provide minimum weekly pay guarantees which remove the stress of worrying about delays that could reduce the paycheck. Don’t worry about free-loaders to the system: there are enough tracking devices and performance measure to ensure that drivers won’t milk the system. Investing in these methods will pay for themselves by reducing turnover.

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truck driver satisfaction

Recruiters know that truck driver satisfaction is essential to ensuring long-term retention. Sometimes we naively believe that good pay, benefits, and home time are the only ingredients that go into the perfect satisfaction recipe. A 2017 study by TruckersReport.com, along with software firm OdinText, showed that this isn’t the case at all! The study used text analysis to evaluate comments on TruckersReport.com discussion boards. For veteran drivers, pay grade came in fifth among factors that influence job satisfaction. For both veterans and novices, one of the leading factors was if the company culture is ‘family-oriented”. While great pay and benefits are necessary for drivers to be satisfied with their carriers, it’s obvious that they aren’t enough. Here are 6 ideas to improve driver satisfaction and retention.

1. Equipment

Drivers don’t want to deal with shoddy equipment and recurring maintenance issues. Good equipment is one of the most cited factors that influence driver satisfaction with their carriers. Investing in newer model trucks and quickly resolving maintenance issues will signal to drivers that your carrier employs professionals who care about safety and image. Consider also investing in trucks with larger cabins with fleet amenities, such as kitchen appliances and satellite radio/TV to allow for more options during down time for drivers.

2. Ride along programs

Truck driving can be a lonely profession and hobbies can go only so far in combating boredom. OTR drivers have it particularly rough as they often go several days or even weeks without seeing their loved ones.

Including a passenger or pet ride along program shows your drivers that you care about their personal lives and happiness.

A pet policy lets drivers bring their canine or feline companions on the road with them. Spouse ride along policies gives drivers the flexibility to spend more time with their significant other without losing time away from the job. Driver satisfaction is guaranteed to improve if drivers get to spend more time with who they care about.

3. Health incentive programs

Truck driving has the reputation of being one of America’s “unhealthiest professions”. While drivers may not fault their carriers for the inherent risks of the job, they appreciate any efforts carriers make to minimize those risks. Many companies have been engaging in incentive programs to help drivers meet their health goals. These could be as simple as providing healthy sack lunches or break rooms with healthy options. On the other hand, they can be as ambitious as onsite fitness centers, discounted gym memberships, or wellness days with physicals and health assessments. There’s no doubt about it—overall driver satisfaction with the career and the job increases when drivers are healthier, so there’s no downside to prioritizing health.

4. Safety

Truck drivers know that the job comes with inherent risks of crashes and other dangers on the road. When carriers prioritize safety as a top concern within the organization, drivers take note and it will have an impact on their satisfaction.

Carriers can take many steps to address safety in their procedures and policies.

In addition to what the law requires, carriers can institute their own regulations for time behind the wheel, rest time, maximum speeds, and the rest. Make sure that equipment is well maintained and showcase to drivers that the company values their safety. Consider providing drivers with free hands-free devices for use where permitted, or a hassle-free streamlines maintenance request procedure.

5. Professional development

Trucking isn’t just a job for drivers, but a career path along which the current job may just be a stop on the road. The sooner recruiters realize that drivers have career ambitions and won’t stay in the current driving job forever, the sooner they can help facilitate process within their own carriers. Perhaps some drivers are looking for additional endorsements and certifications to make specialized runs. Carriers can help provide training for these and groom drivers toward those jobs with the same company. Other drivers may be looking to switch regions, or runs. Still other may eventually hope to become owner-operators, or retire and become trainers. All these jobs could be provided through your carrier. Drivers value loyalty so if your carrier invests in their professional development, they will reciprocate by sticking with the same company and being even more satisfied with the company.

6. The “little” things

The results of the study suggest that one of the biggest factors impacting driver satisfaction is the company’s culture. Drivers often look for carriers which are family-oriented.

What this really means is that family and loyalty are things drivers value. They are looking for carriers whose values align with their own.

If carriers value family, then your carrier will naturally offer benefits like strong home time, a pet policy, paid time off, or college scholarship funds for family members. Similarly, drivers want to be respected and treated like professionals. When recruiters, dispatchers, and fleet managers treat drivers like people and not simply leads, driver satisfaction will soar through the roof.

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smoking cessation

Smoking cessation programs are a great benefit to anyone looking to quit smoking. CDC statistics show that anywhere from 30%-50% of all truck drivers smoke cigarettes daily. Add this heath risk to an already stressful and sedentary occupation, truck drivers can be extremely prone to a plethora of adverse health conditions or diseases.

According to the American Lung Association: Smoking-related illness in the U.S. costs more than $300 billion a year, including over $175 billion in direct medical care for adults and $156 billion in lost productivity.

Employers can save nearly $6,000 per year for every employee who quits smoking.

Knowing this, what can you do to help your drivers kick the smoking habit for good? What kind of smoking cessation programs and incentives could work most effectively for your drivers?

Every driver has a unique personality. And their individual preferences and behaviors will certainly vary. So when putting together smoking cessation programs for your company, know that a one-size-fits-all approach might not work best. Providing options here might be a great idea. After all, you want to ensure the highest success rates possible. This will lead to healthier drivers and a healthier bottom line at the end of the year.

Change the Habit

Quitting smoking is undoubtedly very difficult. Otherwise, it would be easy for smokers to just decide to quit and stick with it. Breaking the habit by changing behaviors is a great place to start.

Offer small incentives for truckers who take steps to quit. Offer your drivers access to apps or web tools that help them stick with it once they decide to stop smoking.

There are a number of free programs available online that might help. Offers are available for coaching, hotlines, webinars and guides. All of these tools can add to the success of your company’s smoking cessation goals.

Smokeless Options

Many former smokers have found success quitting using any number of smokeless options. Though these still deliver nicotine to the body, the harmful byproducts of cigarettes are eliminated while the smoker gradually cuts back until they’ve officially quit.

Giving your truckers samples or discounts/coupons to the various patches, gums or e-cigarette options available can be a great help to someone seeking to stop smoking.

Some of these manufacturers have free programs via their websites, and offer coupons that you could provide to your employees.

Medication

There are several medications available that can aid a smoker who’s trying to break the habit. Some products are available over the counter at most drug stores. And there are many different types of prescription drugs available that can help. Making sure that these options are included in your company’s medical benefits package is a great way to encourage successful smoking cessation programs.

Giving your truckers access or discounts to these medications via their health insurance or HSA/HRA programs can lessen the expense for your drivers.

Giving your truckers access to a variety of smoking cessation tools and programs will ensure that you’re doing all you can to help your drivers lead healthier, longer lives. Helping them change their habits, and providing help with substitutes and medications can pay for themselves with cost savings at the end of the year. If you’re looking for additional tools to help your drivers lead healthier lives, download our ebook.

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CDL truck drivers have many things to consider when taking on a new trucking job. Routes, benefits, work-life balance, and certainly driver pay are key factors. And pay is usually at the top of that list. From Indeed.com:

The average CDL driver salary is $1,074 per week in the United States.

This is based on over 1.6 million self-reported salaries, for a driver with just under 1 year of tenure. Using this as a gauge for the average CDL driver salary: how do you stack up?

This average is derived from a range of salaries, from $200 per week at the low end, to almost $3,000 per week on the high end. It also includes rates reported from both owner-operators as well as company drivers. Likewise, salaries for drivers who have additional endorsements on their license are included as well. So it’s easy to see that here’s quite a range from the low to high end of the scale.

It’s worth noting that a CDL driver salary alone does not account for total compensation.

Total compensation includes salary PLUS things like medical benefits, bonuses, paid time off and 401K / retirement programs. All of these things should be looked at when considering a new trucking job. Truckers could get lured by big signing bonuses upfront, but over time, those become less important vs. pay rates and longer-term benefits. Total compensation is the more meaningful number to understand when working through financial planning.

Our Approach

In an effort to be competitive, many of carriers who partner with Drive My Way access driver wage data through The National Transportation Institute (NTI) to evaluate and update their compensation packages based on today’s market. Drive My Way offers consulting for how your organization and jobs are performing based on driver interest and decline feedback. In addition, we often refer those that are struggling to compete in particular markets to NTI for a competitive market data analysis of their pay and benefits offerings.

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Drive My Way matches drivers with companies based on professional qualifications and lifestyle choices.

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It is no surprise that America has been struggling with a truck driver shortage over the past few years. Now more than ever, companies need to reevaluate their recruiting and retention strategies for finding and keeping qualified drivers that meet the needs of their jobs.

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