The shortage of truck drivers has become a major issue despite the hike in payment. Many trucking companies have revised their payment structure to retain the drivers, but it has not solved the scarcity of them. The pandemic has increased the demands for online delivery and ordering services. This has not only increased competition for the long haul truckers but also forced companies to pay their drivers more.
The high turnover of drivers has also affected the insurance rates. Trucking companies need to understand why drivers leave the job in order to improve the retention rate. The high turnover often leads to higher insurance rates. This is because the longer a driver stays with a company the less likely they are to file a claim.
Let’s delve into the details to learn more about why the higher salary fails to fix the driver shortage issue.
Impact of Huge Turnover
The increased salaries prompt drivers to keep switching their jobs from one company to other. This might sound bizarre to you, but the average turnover rate of a trucker is more than 95 percent.
Unfortunately, the industry is facing the most severe shortage of drivers; particularly truckload carriers. Though many drivers appreciate the efforts and approach of the trucking companies regarding pay hikes, they keep an eye on the other offers.
It’s because they are aware of the shortage issue in the industry and wanting to work with the truckers that have better offers. When they find a better opportunity, they immediately switch.
Do Pay Hike Benefit the Trucking Industry?
Increasing pay has the opposite effect on the trucking shortage. In fact, it has exacerbated the issue instead of solving it. Many drivers often use their large paychecks to reduce their driving hours and stay at home. They spend more time with their families and make the most of this opportunity to be with their family.
It’s mostly because truckers have a tough life due to having to drive long distances and stay away from home for weeks. No matter how much a trucker enjoys his work, the job is demanding and not for everyone. The long stretches away from family, hours of driving, and homesickness are also the key reasons why drivers leave or change their jobs soon.
As mentioned above, trucking companies need to boost payments to keep their drivers on the payrolls. In addition, it is important to stay competitive in the market and retain the drivers.
The increase in truck driver’s pay has increased the issue of driver shortage in the industry. It also has affected the rate of insurance premiums trucking companies have to pay to the insurers. Make sure your drivers demands are heard, so they can be happy and you can retain drivers.