The trucking industry routinely complains about a truck driver shortage. Trucking companies had trouble attracting new drivers for various reasons, including the tough demands of the job and onerous Hours of Service regulations.
Some argue that technology is the solution. New trucking apps for owner-operators make it easy to find and bid for loads.
But what about the old fashioned way of attracting (and retaining) truck drivers? Raising pay. Well, that’s exactly what Schneider has decided to do, and they’re combining the pay raise with their initiative to entice more drivers to team up.
Will other trucking companies follow their lead?
Team Truck Drivers
Due to a surge in demand for essential goods during the pandemic, Schneider, the 5th largest US trucking company, decided that team truck driving was the answer. With rotating drivers, the truck can always be in motion and deliver more products.
In order to attract and keep their team drivers, here’s what Schneider has done:
- Team truck drivers saw a pay increase in August
- Raise was 3 CPM (cents per mile) on average
- Schneider is offering new team drivers a $10,000 sign on bonus
- Solo drivers are being offered $5,000 to team up with another driver
Although the extra few cents per mile may not seem like much, the increase ends up adding about $6,000 per year for each trucker. As a result, almost all Schneider truckers make over $90,000 a year. In addition, current team drivers also received an extra monthly bonus of $200 on top of the salary increase. Unfortunately, this mini boost is scheduled to end by February.
The Holiday Season
According to market consensus, the upcoming holiday season is expected to break new records. Ecommerce was already booming, but the pandemic will only make that trend even more pronounced.
Since most consumers will not be doing their shopping in-person, many more gift purchases are likely to be made online compared to the average holiday season.
By having semi-trucks always in motion, Schneider hopes to tackle the oncoming wave of orders. The team truck driver $200 bonus is set to end in January when orders are likely to slow, so we don’t know if Schneider plans on keeping this business model in the new year.
If Schneider sees massive success and profitability from this move, however, we may see even more team driver incentives from them. And maybe other trucking companies as well.