Transforming Driver Pay
By: Lori Furnell, VP Business Development, ACS Advertising
Change is inevitable unless you are talking about driver pay for the past twenty years. There have always been two choices in driver pay: mileage or percentage pay. Bonuses have been seen in many forms: safety, mpg, tenure. The list goes on. However, increases in pay have not grown at the same rate as the economy.
Well, hold on to your calculators, because driver pay is changing. In the next three years, you will see companies eliminate tenure pay increases and determine pay by reviewing driver productivity. To make this new method a success you will see companies awarding bonus pay weekly. So, if a driver saves the company money with a strong mpg, he will be rewarded for it the same week. The new fleet manager will manage through a set of KPI’s (Key Performance Indicators), and have to provide performance feedback weekly.
Sign-on bonuses are here to stay, and will become even more competitive. With so many changes, recruiting drivers will no longer be apples to apples. Recruiters will have to understand and articulate pay packages in the simplest of terms. The most successful recruiters will coach drivers through their job choices, helping them understand their options fully.
So, change is inevitable…even when it comes to driver pay.
Company Driver Pay