Creating an Engaging Driver Referral Program

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Driver referral programs have become a cornerstone for many trucking companies aiming to recruit and retain high-quality drivers.  

 

By leveraging the network of existing drivers, companies can not only fill positions more efficiently but also create a sense of community and trust within their workforce. However, not all referral programs are equally effective.  

 

Keep reading to discover 9 essential strategies to truly engage your drivers and maximize program success, raising your retention rates and overall employee satisfaction.  

 

  1. Offer Meaningful Incentives

The foundation of any successful referral program is a compelling reward system.  

 

Cash bonuses are popular, but pay isn’t the only strategy for encouraging drivers. Consider diversifying your incentives to include options like paid time off, gift cards, or even exclusive benefits such as priority scheduling or access to premium equipment. 

 

No matter what the incentive is, make sure the rewards are significant enough to motivate participation and reflect the effort of finding qualified candidates. 

 

  1. Simplify the Process

Truck drivers are busy people, and if the referral process is too complicated, they may be less likely to participate. Consider streamlining your referral program by: 

 

  • Creating an easy-to-use online or mobile platform. 
  • Providing clear instructions on how to submit referrals. 
  • Offering updates on the status of the referral. 
  • Make participation as straightforward as possible to encourage more drivers to get involved. 

 

  1. Promote the Program Effectively

Drivers are only going to take part in a program that they know is available and accessible to them. Ensure that all drivers are aware of the referral program by promoting it through multiple channels, including: 

 

  • Company newsletters. 
  • Social media platforms. 
  • Driver meetings. 
  • Flyers posted in common areas, such as break rooms or dispatch offices. 

 

Additionally, be sure to highlight success stories of drivers who have benefited from the program to build enthusiasm and trust. 

 

  1. Set Clear Eligibility and Payout Guidelines

Ambiguity is another factor that can deter participation, so be clear about the program’s rules. Transparency also helps build confidence in the program and encourages drivers to take part. When promoting or discussing the referral program, ensure that drivers understand these important stipulations: 

 

  • Who is eligible to participate (e.g., all drivers, only full-time employees) 
  • The types of referrals accepted (e.g., CDL holders with specific experience) 
  • When and how payouts are made (e.g., after the referred driver completes 90 days of employment) 

 

  1. Recognize and Celebrate Participation

Another important step in creating a successful referral program is to recognize drivers who bring in referrals. This can help further promote the program, while reinforcing the value of their efforts and motivating others to join in. Here are just a few ways to recognize and celebrate drivers who take part: 

 

  • Announcing their contributions in company meetings or newsletters. 
  • Including their names in a “referral leaderboard.” 
  • Hosting an annual recognition event or providing awards for top referrers. 

 

  1. Incorporate Feedback from Drivers

Like all organizational operations, feedback is essential for the success of your referral program. Consider engaging drivers during the program’s design phase to understand what types of rewards motivate them, whether it is cash bonuses, extra time off, or company swag, and what might encourage their participation. 

 

Once the program is running, gather ongoing input through engagement surveys, team meetings, or one-on-one conversations to identify and address any barriers, such as unclear rules or delayed payouts. 

 

Demonstrating that you value your drivers’ opinions fosters trust and engagement across your workforce. Additionally, be sure to communicate any changes made to the program based on their suggestions to show their voices are being heard. Drivers who feel involved and valued are more likely to become enthusiastic ambassadors for your company, amplifying the success of your referral efforts and contributing to stronger recruitment and retention overall. 

 

  1. Foster a Positive Work Culture

A driver referral program will only succeed if your current drivers are happy with their work environment. Dissatisfied employees are less likely to recommend your company to others. Focus on creating a workplace culture that prioritizes: 

 

  • Respect and open communication. 
  • Fair pay and benefits. 
  • Transparent management practices. 
  • Satisfied employees are your best ambassadors. 

 

  1. Leverage Technology

Modern tools can be useful to track referrals, communicate updates, and manage payouts. Dedicated software platforms can streamline the process, making it easier for drivers to participate and for you to monitor the program’s success. 

 

Consider investing in technology and software that will make the experience smoother for everyone involved, increasing the chances that more drivers will take part in the referral program.  

 

  1. Measure and Adjust

Every referral program is an ongoing process, so it is essential to continuously evaluate your program’s effectiveness. After considering driver feedback and suggestions, some metrics to monitor include: 

  • The number of referrals submitted. 
  • The percentage of referrals hired. 
  • Retention rates of referred drivers. 

Be sure to use this data to refine the program over time, ensuring it meets your recruitment goals. 

 

 

 

For more ways to stay ahead of the curve in the transportation industry this year, be sure to check out the rest of our Employer Blog posts and connect with us on social media.  

The Importance of Competitive Compensation Packages

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In the competitive trucking industry, carriers face significant challenges in attracting and retaining qualified drivers.  

With the ongoing driver shortage and increasing demand for freight services, a robust and competitive compensation package has become a cornerstone for companies aiming to build a reliable workforce.  

Keep reading to explore why competitive compensation matters, and how it can improve your recruiting and retention efforts. 

 

  1. Addressing the Driver Shortage
    The American Trucking Associations (ATA) reports that the driver shortage continues to affect the industry, with an estimated need for tens of thousands of new drivers annually. 

Offering compensation that stands out from competitors signals a carrier’s commitment to valuing their workforce. Competitive pay can make your company more attractive to job seekers and encourage experienced drivers to choose your fleet over others. 

  1. Retaining Experienced Drivers
    High turnover rates remain a pressing issue for trucking companies. Drivers often cite inadequate compensation as a top reason for leaving their positions, including our 2023 Truck Driver Happiness Report. 

A well-structured compensation package, complete with competitive wages, bonuses, and benefits, reduces turnover by incentivizing drivers to remain with your company long-term. 

  1. Boosting Job Satisfaction and Productivity
    Drivers who feel adequately compensated are more likely to exhibit higher levels of job satisfaction. 

This satisfaction translates into better performance, improved safety records, and increased reliability. Compensation isn’t just about paychecks; it’s about recognizing the value of the essential work drivers perform daily. 

  1. Meeting Drivers’ Financial Needs

Increased living costs and economic pressures mean drivers are looking for employers who understand their financial realities. Competitive compensation ensures that drivers can meet their financial goals, whether saving for their families, covering operational costs as owner-operators, or investing in their futures. 

  1. Enhancing Your Company’s Reputation
    Word-of-mouth and online reviews play a crucial role in the trucking community. Offering competitive compensation improves your company’s reputation, attracting new talent through positive referrals and maintaining trust within the driver network.

 

Components of a Competitive Compensation Package

To effectively recruit and retain drivers, carriers must offer more than just a base salary. Here are key elements to include: 

  • Base Pay: Competitive hourly, mileage, or salary rates that reflect industry standards and geographic variances. 
  • Bonuses: Performance-based bonuses for safety, fuel efficiency, or tenure to reward excellence and loyalty. 
  • Health Benefits: Comprehensive medical, dental, and vision coverage to provide drivers with peace of mind. 
  • Retirement Plans: 401(k) options or similar plans with company contributions help drivers plan for their futures. 
  • Paid Time Off: Offer vacation days, sick leave, and personal days to support work-life balance. 
  • Incentive Programs: Programs like referral bonuses, wellness initiatives, and profit-sharing can further motivate drivers. 
  • Perks: Reimbursement for certifications, paid training programs, or allowances for meals and lodging during hauls. 

 

Strategies for Implementing Competitive Packages

This step is critical according to Leah Shaver, President and CEO of The National Transportation Institute,  

  • Engage Drivers for Feedback: Use surveys or meetings to understand what matters most to your drivers regarding compensation. 
  • Communicate Clearly: Be transparent about pay structures, benefits, and opportunities for bonuses during the recruitment process and beyond. 

 

 

For more advice to stay ahead of the curve in today’s transportation industry, be sure to check out the rest of our Employer Blog posts and connect with us on social media. 

 

How to Have a Great Truck Driver Award Program

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truck driver awardsIt’s human nature for people to want to be recognized for their achievements, especially in the workplace. And while truck drivers don’t operate in a traditional “workplace” like an office, that doesn’t mean that they don’t want to be recognized for all the hard work they do week in and week out. 

If your carrier hasn’t already, consider starting an award program so you can recognize the drivers in your fleet who go above and beyond the call of what’s expected. Here are the 3 most common types of truck driver awards along with some tips on how to make the most of your award program.  

3 Truck Driver Awards to Give Out This Year

1. Million Miles Safety Club Award

Driving one million accident-free miles in a personal car is rare enough, but doing that in a 15-ton semi-truck? While it seems impossible, thousands of drivers reach this milestone every year.   

A special trophy engraved with their name and the date, and the number of miles they’ve driven makes for a great keepsake for any long-time driver. Consider having something even more special for drivers who have achieved this milestone more than once. 

2. Everyday Recognition Award

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 next email to drivers.  

These types of truck driver awards are small but can make your drivers feel special and proud to be a part of your organization.

3. Driver of the Year

The “Driver of the Year” award is the biggest and best of them all. This award should be reserved for the driver who’s truly made a difference for your company this year. 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. 

3 Tips for Having a Great Award Program

truck driver awards

1. Number of Awards 

It’s important to scale your award program based on how large your organization is. The award program that a fleet of 50 uses shouldn’t be the award program that a fleet of 500 uses. The general rule is the larger your fleet, the more awards you should have. 

If your organization is large enough, you can break an award down into further sub-categories. So, instead of just having one Driver of the Year, you could have one Driver of the Year for each location, or one per haul type/division.   

Amber Long and Cate Whitman, representatives with Drive My Way client, Paper Transport, recently dealt with this obstacle as their fleet started to expand,   

“Originally, we only gave out a small number of these awards to the drivers who ranked at the very top. This was fine at first, but as Paper Transport grew, we realized this now meant that we weren’t featuring an appropriate number of drivers relative to how big out fleet was becoming.

We decided to give out a greater number of these awards so we could recognize even more drivers. This gives them more incentive to have a good scorecard since the awards are much more attainable now.”

2. Selection 

To make the award selection more inclusive, you can let drivers nominate their fellow drivers for awards. After that, you can have a team to vet the finalists, but having drivers be a part of the nomination process is great for team building and creating a culture where driver’s opinions are valued. 

3. Presentation 

Aside from the award itself, make sure the winner is known throughout your company. Sending out a photo of the winner in an email, or even better, awarding them during a company-wide event is a great way to make sure the winner is properly recognized and adds some prestige to the award. Just make sure that the driver is comfortable with this beforehand, in case they’re not a fan of having the spotlight on them. 

If you’re giving out a plaque, consider having two copies made; one that will be given to the driver and one that will be featured in a prominent place in your carrier’s office or terminal. 

No matter if you’re a recruiter, fleet manager, or executive, take some time to improve your truck driver awards program to show your drivers how much your carrier values them. 

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Ultimate Guide to Retaining Truck Drivers

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Is Being a Lease Purchase Trucking Company Worth It?

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lease purchase trucking company

Recruiters work hard to find the best candidates for their open jobs. Using all available resources, they 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. This new lane could be becoming a lease purchase company.

The Basics

trucking endorsementsMany CDL drivers are looking to advance their careers by owning their own trucks. However, this is a big step and requires a significant financial investment up-front. While some drivers are fine with buying their truck the traditional way, others may be looking for a more financially-friendly way to purchase a truck. This is where lease purchase agreements come in.

A lease purchase agreement is a legal arrangement between a driver and a carrier, where the driver leases a truck from the carrier for a set amount of time while driving for the carrier and making payments on the truck. Once the payments are made, the agreement is met and the driver fully owns the truck.

Lease purchase agreements can be a great solution for both drivers who are looking for a cheaper way to own their own truck and carriers looking to bring quality drivers on board. Drivers interested in lease purchase options are usually more experienced and serious about trucking as a long-term career. Two things that every recruiter loves to see in a driver.

If your carrier 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 their 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

As mentioned earlier, becoming a lease purchase carrier a great way to differentiate yourself from the competition. And unfortunately, it’s also an opportunity for carriers to put out deceptive marketing messages—ones that might make it seem like it’s an easy way for a driver to own their own truck with little work on their end.

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

Be sure to be clear and forthcoming about every aspect of the lease purchase agreement with drivers. 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

Like with anything, there is a level of risk associated with becoming a lease purchase trucking company. There’s always the hope that everything goes right, but sometimes they won’t.

All of the terms of the 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 the carrier is 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 legal implications on the lease company as well, if the driver can’t cover the costs to repair. Additionally, the carrier will need to ensure that the proper insurance and maintenance is being done on the truck throughout the lease period.

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, consider looking into becoming a lease purchase trucking company.

While not right for all carriers out there, this model can bring new leads to your hiring office, and new revenue streams to benefit your bottom line. But it’s 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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Why Trucking Companies Offer CDL Tuition Reimbursement

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tuition reimbursement
Demand for labor in the trucking industry has never been higher. As the market for drivers continues to be competitive, coming up with new ways to entice drivers to work for your carrier is becoming more and more important. One added perk for drivers that many trucking companies are adding to their benefits package is tuition reimbursement.  

We spoke with April Smith, Recruiter with Drive My Way client, Lansing Building Products, about their Tuition Reimbursement Program and the results they’ve seen from it.  

tuition reimbursement“We currently offer a Tuition Reimbursement and a CDL Reimbursement Program. Tuition Reimbursement assists associates with tuition, registration, books and required fees, as well as licensing exams,” shared April.

What is Tuition Reimbursement?

Tuition Reimbursement is when a carrier pays the full cost or a portion of cost that the driver paid to attend CDL school. The company could also pay the cost of a current employee to attend CDL school while working for them. Many companies not only in the trucking industry, but also in the greater workforce are finding success with this tactic.

According to a study by EdAssist, “84% of employees cited tuition assistance as an important factor in their decision to join their companies. In fact, 71% of participants rated tuition assistance among the best benefits offered by their employers after healthcare.” 

“Aside from that, we have a CDL Reimbursement Program assists with the fees for current associates desiring to get their CDL license. This helps associates acquire additional skills that can lead to promotion opportunities and growth within the company,” shared April.

How Does it Work?

Most carriers who participate in tuition reimbursement do so in incremental amounts over a set course of time. This can be one month, two months, or whatever increment the carrier sees fit. Doing tuition reimbursement in increments helps with retention efforts, as drivers will be incentivized to stay with your carrier for the long haul in order to receive the full benefits of the program. 

What are the Benefits of Tuition Reimbursement?

It Helps with Retention

According to a study by Bright Horizons, “76% of employees said they are more likely to stay with their employer because of its tuition reimbursement benefit.” This means that aside from the driver staying with your carrier throughout the period of repayment, they’re more likely to stay with your company after as well. 

Tax Breaks

Aside from tuition reimbursement helping recruiting and retention efforts, it’s also good come tax time. Under IRS guidelines, companies that reimburse their employees’ tuition are eligible for a tax break at the federal level. One thing to keep in mind is that this tax break caps out at $5,250 per year per employee.  

Reputation in the Industry

Having a tuition reimbursement program signals not only your employees, but the greater industry, that your carrier is committed to the growth and well-being of your drivers. In an industry like trucking, where word of mouth is how a lot of drivers find new jobs, this can be invaluable.  

“Offering professional development opportunities lets job seekers know that we are invested in their future. We’ve had numerous drivers over the past few years that have taken advantage of the opportunity to increase their skill set and grow within our company,” shared April. 

According to Randall-Reilly’s Trucker News Connectivity Report, 26% of drivers rely on word-of-mouth when looking for a new job.  Starting a Tuition Reimbursement Program can be a great way to build up or build back a positive reputation of your company in the industry.  

Drivers Who Take Advantage of Tuition Reimbursement

These programs tend to appeal to drivers who are new to the industry and are still paying off their trucking school loans. They especially attract drivers who are right out of CDL school, since the sooner they take advantage of a company’s tuition reimbursement program, the less money they’ll be paying in the long run. 

The most important thing about tuition reimbursement is the tangible impact it can make in the lives of drivers. Just like it has for Lansing Building Products driver, Dominic. 

tuition reimbursement

Dominic, Lansing Building Products

“I’ve been an associate with Lansing Building Products for six years in their Tampa location. I have always had an interest in driving and brought that to management’s attention. Since then, Lansing has provided me with the opportunity to earn my CDL while working for them. Right now, I’m utilizing my CDL to cover for other drivers and hope to eventually become a full-time truck driver. Overall, I appreciate the opportunity Lansing has provided me by helping me to get my CDL and completing the program over the last 6 months,”

As recruiters continue to search for new ways to reach drivers, Tuition Reimbursement is proving to be more and more helpful. Having a Tuition Reimbursement program is great for a lot of reasons, but it all comes down to drivers wanting to work for a carrier where they feel valued. Offering to reimburse their CDL school tuition shows that your carrier is committed to their career and invested in them for the long haul. 

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Ultimate Guide to Truck Driver Recruiting

Current ways of recruiting truck drivers just don’t work anymore. That’s because recruiting isn’t a transaction. This ultimate guide helps carriers recruit for retention.
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Why You Need a Safety Incentive Program

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safety incentive program for truck drivers

All trucking fleets have safety standards, so why is a safety incentive program so important? A safety incentive program can help motivate drivers to high standards AND help document strong safety behaviors. Incentive programs keep the focus positive. As an employer, you encourage the right behavior while also boosting company morale. This type of program infrastructure can be a great way to build driver loyalty and accomplish several safety priorities simultaneously.

Do I Really Need Safety Incentives?

The short answer is yes. Here’s why.

Most trucking companies have safety procedures and expectations, and some may also have specific metrics for their drivers. Fleet safety should be a high priority, and incentive programs are an excellent way to communicate that to drivers and encourage behavior changes. 

While it may not be glamorous, fleet safety and tracking are key to regulatory compliance. In the event of a safety incident, you may need to be able to demonstrate safety protocol among your team.

regulatory compliance checklist

An incentive program can encourage drivers to record their safe driving and creates a positive feedback loop. An incentive program that rewards strong performance is also good for company culture and team morale. Everyone wants to be recognized for a job well done, even if it is a job expectation. There’s also an undeniable benefit to your bottom line. A strong company culture is likely to reduce driver turnover, and that’s a tremendous economic advantage.

The benefits of a well-run safety incentive program also extend to recruiting and marketing. In addition to building internal morale, companies can build off a strong reputation and safety-centric messaging in marketing and recruitment efforts. Use driver recognition and feedback to help create positive brand recognition as a recruitment tool. 

What Should Be Part of a Safety Incentive Program?

A thoughtful safety incentive program has several distinct characteristics. First, if you are offering monetary incentives, offer enough to be meaningful to drivers. The exact amount will vary based on your location, the type of driver, and your standard compensation package. If a meaningful monetary incentive is out of the question for you, consider other ways to reward drivers. Internal or external recognition, visible insignia for drivers to show off, and flexible home time are just a few non-monetary possibilities that will still motivate drivers. Not all employees are motivated by the same thing, so you may also consider implementing a multi-pronged incentive program. Ultimately, decide what you are best able to offer, and create a strong program based on your resources. 

If a meaningful monetary incentive is out of the question for you, consider other awards that benefit drivers. There are many ways to motivate and reward hard work.

As you design or reshape your safety incentive program, keep sustainability and structure top of mind. Ensure that the program you develop is sustainable for your current and future staff. Even though safety incentive programs are often supplementary to other safety efforts, they take time to maintain. Design something within your capacity. In addition, make sure the safety program is incentivizing the right behavior. For example, a program based solely around mileage may be unintentionally encouraging drivers to drive beyond their safe limits. Thoughtfully determine success metrics when you launch the program. Then, adjust the metrics as needed when you determine points of improvement.

When to Offer Safety Incentives (And When They Won’t Work)

A successful implementation strategy for incentive programs effectively identifies “When.” Common choices for the program cycle are quarterly or annual rewards. To decide what is best for your fleet, you may need to consider the types of jobs you offer. Will your incentive program be effective for both local and regional drivers? If you prioritize safe driving miles, do drivers have similar routes? Or do some drivers have primarily rural routes while others are largely urban? How will this impact drivers’ ability to perform well in your program?

To decide what is best for your fleet, you may need to consider the types of jobs you offer. Then, decide what driver metric you will measure and how drivers will accumulate rewards.

Another timing question to consider is about rewards accrual. Will incentives accumulate for drivers or will they start clean for each new time increment? Similarly, decide whether to offer tiers of incentives or whether you will regularly feature a set of drivers like an employee of the month. Regardless of how you structure the program, start incorporating training and clear safety policies from the beginning as part of driver orientation. 

How to Communicate Safety Incentives to Drivers

happy truck driverEarly and often is the best rule of thumb for sharing a safety incentive program with drivers. Set clear expectations at the start so that drivers know how to succeed. Based on your metrics for driver incentives, tell drivers exactly what they need to do. The results should be measurable, so drivers feel it’s a fair and attainable goal. Then, share the program in clear, simple language so there’s no confusion or feeling of mystery! 

When you talk about the safety incentive program with drivers, make sure to convey the program as a reward! Internally define the program objective, then highlight the benefits and positive rewards to drivers. Avoid a system that is punitive and focuses on how drivers lose points. If designed and communicated well, your safety incentive program will stand out as a positive differentiator from other companies.

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Total Compensation for Drivers: Communicating Effectively

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Total Compensation for Drivers: Communicating Effectively

Job offers that are limited to salary and health benefits tell a partial story. If you have great perks, equipment, or company culture, don’t miss a chance to talk about it! Total Compensation statements are a great way to showcase all of the direct and indirect compensation benefits you are offering to truck drivers. They won’t make up for bad pay, but they are a good way to highlight all of the assets you have to offer. In short, a total compensation package accounts for the complete pay package awarded to employees on an annual basis.

Direct compensation is the money that is paid directly to an employee. It typically includes base salary and incentive pay. On the other hand, indirect compensation accounts for all of the compensation that is not paid directly to the employee. Healthcare, retirement benefits, fuel perks, and continuing education opportunities are just a few examples of indirect compensation.

When talking to a candidate, share both the direct and indirect compensation to effectively communicate what you have to offer.

Typically, the more detail you’re able to give, the more beneficial the statement will be. Here are several common assets to include in a total compensation package.

Direct Compensation

Direct Compensation is divided into two main categories⁠—base pay and bonuses. These are the most common forms of compensation that come to mind for most people.

Base Pay

Whether you state base pay as an hourly rate or annual salary, be clear about your offering. At a minimum, include how much can drivers expect, the anticipated hours or miles, and how frequently they will get paid. If your company offers a per diem rate, this can also be included.

Bonuses

Clarify the potential for driver bonuses from the start. A few of the most common are safety, sign-on, performance, retention, and referral bonuses. Consider sharing the average amount that drivers receive from bonuses in addition to the top amount. By sharing both, drivers have realistic expectations (boosting driver satisfaction and retention) and a goal to strive for.

Indirect Compensation

Indirect compensation includes a very broad range of offerings. Most companies offer several forms of indirect compensation, but may not discuss it in their job offer. That’s a missed opportunity! Let drivers know about all of the benefits you’re providing them. While it may not come as money in the pocket, indirect compensation can be significant financial assets. Drivers who are a good fit for your fleet will value the benefits your company provides.

Health and Wellness

Medical benefits, life insurance, retirement benefits, and disability insurance are all common forms of health and wellness benefits. Nearly all fleets offer basic healthcare, and many go above and beyond. This section should communicate when benefits start as well as the details of each package. If you offer a 401K match, that’s another great asset to include in this section. Even perks like a gym membership allowance or smoking cessation programs can be included here. Drivers love to see that you are prioritizing their health by supporting their healthy habits. 

Days off

Paid time off and vacation days are another form of indirect compensation that drivers value highly. If you are offering any additional sick days or benefits for drivers who get sick with COVID-19, make sure your total compensation package includes that time. In addition, always include the anticipated schedule for home time in a job description or compensation package. 

Continued Education

Learning and development offerings are a wealth of opportunities for drivers. Many potential employees will be particularly excited to find a company that supports their professional growth. Whether you offer compensation for educational assistance programs or regularly facilitate career advancement opportunities, these are a form of indirect compensation. Not all drivers will take advantage of continued education opportunities, but those who do will be highly appreciative. 

Perks

Once you have covered the big benefits like health insurance and PTO, it might be easy to overlook smaller perks, but they add up! Perks can help drivers with big expenses such as relocation benefits or maintenance benefits. They might also defray the cost of smaller, regular expenses such as highway tolls, or gas. If you offer an EZ Pass or a Fuel Card, list it in your total compensation package.

Highlight Non-Financial Incentives

When asked, drivers revealed that there are consistently two top factors that determine whether they are looking for a new job: pay and company culture. Company leadership and culture are difficult to equate to a compensation amount. That said, they are no less important to driver recruitment and retention. If you prioritize a family-like culture or are very safety-minded, it’s appropriate to include this in your total compensation package. 

Foodliner, Inc. is one of the largest bulk food carriers in the country and a Transport Topic Top 100 carrier. They make a point to highlight company culture in their job descriptions. We spoke with Tim Yochum, Foodliner’s Director of Recruiting, and this is what he shared:

“The culture of a family owned business that values their people, treats them with respect, and works well together as a team is what makes us successful and provides a more positive experience for the driver. We have late model equipment, high quality shops, and a great customer base, but in the end it is people that make it all work.”

Similarly, quality equipment is a high priority for most drivers and can be included. Consider adding the year and type of truck as well as whether it is manual or automatic. Then, highlight any additions to the cab. If you provide a fridge, microwave, Sirius XM radio, or allow ride-along programs, share it in your total compensation package. To recruit drivers, there are also other attractive non-financial incentives that you can implement.

Communicating Total Compensation Effectively

After you have clarified exactly what your company is able to offer potential candidates, start drafting the total compensation statement. Ultimately, you’re looking for good hires and strong retention. Tim Yochum shares why he prioritizes transparency at Foodliner:

“We list non-monetary compensation in our job postings and if a candidate contacts us we are very open to providing the details of the compensation so they understand how this can affect their total compensation package. Honesty up front verses a surprise later is what we feel candidates value and appreciate. We feel that if the only reason you take a job is the money, then that will eventually be the reason you leave the job. We want the candidate to understand how the total package affects them and their family.”

Give as much detail as you are able to clearly share. It’s important for drivers to have all of the necessary information to make a decision. Even if drivers decline the job offer, that is a better outcome than hiring drivers with misleading information. If drivers feel like they have been intentionally deceived, they are more likely to quit and will have a poor impression of the company. There should be no hidden surprises. Clear communication that highlights everything you have to offer is the best approach to a total compensation package.

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Simplifying Truck Driver Pay

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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 that 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 the purchase of time-sensitive medicine. Do whatever you can to make delayed payments less likely. Updating your pay systems reduces the chances of human error and makes 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 on 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 measures to ensure that drivers won’t milk the system. Investing in these methods will pay for themselves by reducing turnover.

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6 Ideas for Improving Driver Satisfaction

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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 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 whether 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. Therefore, investing in newer model trucks and quickly resolving maintenance issues shows drivers that you care about safety. Consider also investing in trucks with larger cabins with fleet amenities. Drivers appreciate kitchen appliances and satellite radio/TV that allow for more options during down time.

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 will 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. For example, some companies are 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 others 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 that 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: How You Can Help Your Drivers

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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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Ultimate Guide to Truck Driver Recruiting

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