Trucking Companies Finding New Ways To Pay Drivers
As we’ve noted in a previous article, most economic signals are indicating that larger amounts of freight are going to continue to increase an already finite amount of drivers available for hire. Some companies are starting to simply increase their wages in anticipation of this wave that many view as inevitable. Other companies are starting to rethink how drivers are actually paid to see if there are untapped new ways to recruit drivers.
There are some companies that have begun exploring options outside of the traditional way of paying their drivers and looking at things we refer to as a “blended rate”. The idea is that you don’t necessarily increase the trucking rate you pay a driver but open the times that they are eligible for pay. The idea is that some companies could start paying drivers outside of their traditional per mile pay and start including driving time as a factor too. Traffic congestion seems to get worse every year which leads drivers to become more frustrated with the per mile pay system. Combined with the ELD mandate coming out and many drivers find themselves “working” while not earning – which makes the blended rate attractive.
Another idea which is a hybrid of the “blended rate” we mentioned is to pay them as a combination of per mile pay, driving time, and even on-duty time. For those that find themselves playing a waiting game while loading/offloading their freight, they could see that as a great opportunity to be better compensated for their time.
Does this mean that the industry might simply switch over to an hourly form of pay? Probably not. Is it likely we see some new and creative ways drivers are compensated for their work? Absolutely. Carrier and logistics companies are going to continue to try an be inno