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THE CROSSROADS OF PAY & CULTURE: A VIRTUAL TRUCKING ROUNDTABLE

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RECRUIT FROM THE INSIDE OUT: WINNING WITH RETENTION

APRIL 20TH @ 2PM EDT

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TT NEWSMAKERS:
THE VALUE OF A GOOD DRIVER

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DRIVING HIRING:
BALANCING WAGES AND BENEFITS — TAKING THE HIRE ROAD

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WHERE ARE THE TRUCK DRIVERS? AND AT WHAT PRICE?

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“We have used the insights and information from NTI as a tool to help us design our  driver pay strategies throughout the years! Leah and the NTI Team bring a fresh approach  to problem solving in our industry and we value their partnership in helping us develop  our fleet with best in class strategies!” - Phil Wilt, President/COO, American Central Transport, Inc.
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TOP NEWS & ARTICLES

DRIVER WAGES
ARE A TOP FACTOR IN RETENTION


Surprise! A recent WorkHound study finds that compensation is an important factor in keeping drivers on the job. But it isn’t just the amount that matters. Both clarity regarding salary structure and avoiding paycheck errors are supremely important factor in keeping ...

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RISING WAREHOUSE SALARIES COULD UNDERCUT THE POTENTIAL DRIVER POOL


As we monitor driver compensation, we can’t forget to stay in the loop on competitive industries. One of those is warehousing, where gaining wages may threaten potential driver recruitment. A recent Randstad survey finds that demand for warehouse workers ...

READ MORE
 

DRIVER SUPPLY CONSTRAINTS PLAGUE CARRIERS


After spending the first half of 2020
rightsizing and attempting to pivot, most carriers were blindsided by the changes that came in the remainder of the year. Fleets experienced record low turnover and even stalled recruiting efforts in Q1 and Q2,only to find themselves completely unprepared ...

READ MORE
 

NEW ADMINISTRATION GIVES INDEPENDENT CONTRACTORS AND SMALL FLEETS SOMETHING TO STRESS ABOUT


If history is any indication, we are not likely to see business-friendly legislation come out of President Biden’s administration. As a legacy Democrat, odds are that his focus will be on greater regulation and consumer protection. ...

READ MORE
 
 

2021 = 2018 WITH COMPLICATIONS


When carriers think of 2018, they probably remember it as a stressful time. The demand for trucking went through the roof, but with unemployment barely teasing 4%, we saw would-be drivers ...
 

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OUR MUST READ LIST


A Rocket CDL study finds that 35% of first leads submitted by drivers are submitted in their first 3 weeks on the job, and 50% of referrals come from drivers who refer 4 or more applicants.


The Grawe Group offers advice on how to protect your independent contractor program.

 

DRIVER WAGES ARE A TOP FACTOR IN RETENTION

 

Surprise! A recent WorkHound study finds that compensation is an important factor in keeping drivers on the job. But it isn’t just the amount that matters. Both clarity regarding salary structure and avoiding paycheck errors are supremely important if you want to avoid frustration among your crew.


Another big topic was bonuses. Namely, transparency on when (or if) bonuses are coming. WorkHound notes that if drivers are so reliant on bonuses, it may indicate underlying problems in compensation rates and structure.
 

The main takeaway here is that communication, supported by NTI benchmarking, is key. Wage structures with built-in guarantees go a long way to alleviate some of our drivers’ biggest concerns, especially when it comes to circumstances outside of their control (think weather, breakdowns, shipper, or consignee delays). If you offer a model that addresses any of these common complaints, promoting it (both internally and externally) will help your company recruit and retain drivers this year.
 

As NTI President Leah Shaver explains, ‘Transparency in pay and schedule is something you’ve heard from us since 2015. Incorporating concepts like guaranteed pay, salary pay, hybrid mileage, and hourly pay...Any of these things that your company offers should be promoted to help you stand out.’

 

NTI benchmarking has backed critical decision-making for 26 years. Understanding where your employment package is most competitive, adjusting proactively, and re-marketing strategically is what will help keep your drivers in the seat, and that is a WIN.

RISING WAREHOUSE SALARIES UNDERCUT THE POTENTIAL DRIVER POOL

 

As we monitor driver compensation, we can’t forget to stay in the loop on competitive industries. One of those is warehousing, where gaining wages may threaten potential driver recruitment.

 

A recent Randstad survey finds that demand for warehouse workers is accelerating and the sector is ripe for wage increases. According to the firm’s 2021 Salary Guide, wages for warehouse positions are expected to range from $15 to more than $24 per hour for shipping and receiving roles. Pay for manager roles could exceed $43 per hour this coming year. A growing appetite for e-commerce, accelerated by the coronavirus, is the culprit behind the rise. (An eMarketer estimate predicts online retail purchases in the United States will reach $843 billion in 2021.)

 

Warehouse jobs are booming, and rising compensation could be one more reason that a potential driver never enters the candidate pool.

 

The situation puts carriers in a tough spot. Warehouse positions offer certain perks that trucking cannot, like more time at home and less oversight.

 

NTI would also note that several companies who participate in the National Private Fleet Survey employ both warehouse workers and drivers, and create career paths for each.

DRIVER SUPPLY CONSTRAINTS PLAGUE CARRIERS

Driver Turnover, Driver Supply, Freight Rates & Capacity Demands all effect Driver Income

After spending the first half of 2020 rightsizing and attempting to pivot, most carriers were blindsided by the changes that came in the remainder of the year. Fleets experienced record low turnover and even stalled recruiting efforts in Q1 and Q2, only to find themselves completely unprepared for the third quarter. Once summer rolled around, demand for consumer goods spiked, along with driver turnover. Now, the trucker pool is drying up and carriers report that they could grow their business many times over if only they could recruit enough drivers.

 

A few streams flowed into this river. For one, as lockdowns were lifted, truck-competitive job openings picked up, causing the driver pool to contract. The Drug & Alcohol Clearinghouse encourages potential drivers to self-select out – meaning they won’t even apply to change jobs or enter the industry. The growing economy increased competition among carriers to retain the drivers they already had. Schools produced fewer new entrants, thanks to social distancing requirements. Finally, some of the dip could be attributed to age. Drivers near or above age 65 could be choosing to ‘sit this one out’ rather than risking COVID-19 infection.

NEW ADMINISTRATION GIVES INDEPENDENT CONTRACTORS AND SMALL FLEETS SOMETHING TO STRESS ABOUT

 

If history is any indication, we are not likely to see business-friendly legislation come out of President Biden’s administration. As a legacy Democrat, odds are that his focus will be on greater regulation and consumer protection.

 

This could mean a lot of things for the trucking industry. Two of the biggest potential changes we’re keeping an eye on are increased minimum insurance requirements and changes to independent contractor status.

 

One bill that’s on the table is the Moving Forward Act. Among other things, it raises minimum insurance requirements from $750,000 to $2 million. This would not be affordable for independent contractors and smaller fleets. We expect it to push drivers under the umbrella of a larger company, or out of business altogether.

 

The Moving Forward Act isn’t the only measure that could hamper independent contractor status. Another one is the Protect the Right to Organize, or PRO Act. Modeled after California’s A.B. 5 legislation, it would require companies that hire independent contractors to classify them as employees in most cases. This would make it much more difficult for carriers to contract with owner-operators.

2021 = 2018 WITH COMPLICATIONS

 

 

When carriers think of 2018, they probably remember it as a stressful time. The demand for trucking went through the roof, but with unemployment barely teasing 4%, we saw would-be drivers get lured into other professions. Trucking employment stalled.

 

Now, as we like to say, the trucking market is similar to 2018, but with complications.Two years ago, recruitment was challenging because of the number of truck-competitive blue-collar job openings. There were other options for a worker whodidn’t want to spend nights on the road.

 

In 2021, more than 10 million Americans are out of work, but a driver shortage still looms large. If raging unemployment isn’t translating into more CDLs, carriers are left wondering if the job is simply unattractive.

 

The answer is complicated. Although unemployment is much higher now than it was then, aging out, stringent drug testing and health concerns all play a role in keeping the driver supply at bay. The reasons for a shortage are different than they were in 2018, but regardless, carriers are still feeling the pinch.

 

Meanwhile, the combination of stimulus payments and an appetite for online shopping keeps pushing demand for carrier services higher. Under these circumstances, it’s more critical than ever to utilize NTI benchmarking to find and promote the advantages your company offers.

 
 
 

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