Carriers Expect Driver Compensation to Increase in 2019

Commercial driver pay is expected to rise according to a recent study by Driver iQ, provider of comprehensive background screening and driver monitoring services to the trucking industry.

“Recruiting executives have mixed reviews on what they think turnover will do in Q1 2019 with one-third each expecting it to increase, decrease, and remain the same. However, 60% expect that future driver compensation will continue to increase,” said Lana Batts, Co-President of Driver iQ. “Most unexpectedly was that 25% believed that driver pay would have to approach $100,000 before there could be a significant impact on turnover.”

Batts further noted that “while 65% of the carriers now hire entry-level drivers (up from only 30% in 2012), only about a quarter are willing to grow their own drivers, i.e. operate their own entry-level training schools. This is because operating a company-based training school requires an up-front hard dollar commitment, trained staff, and dedicated facilities and equipment. Unfortunately, once trained, drivers may leave the industry or move on to another carrier before the training company recoups their investment.”

Among the details in the survey are the following:

• There is still a disconnect (albeit small) between the number of carriers who support the concept of younger drivers (18-21) operating in interstate commerce (70%) and the number who would actually hire such a young driver (60%).
• The best driver recruits who stay with a company after two years come from referrals and rehires – both sources that carriers can control.

The Q4 Trends in Truckload Recruitment and Retention Survey from Driver iQ is the latest in a planned series of quarterly surveys designed to better understand and measure recruiting and retention experiences and expectations in the truckload sector. The results of the survey are coupled with observations of Driver iQ personnel engaged in the background screening industry. The survey represents the views of recruiting managers who operate over 75,000 trucks and the majority of the responses came from dry van carriers with over $100 million in gross operating revenues.

Category: Driver Stuff, General Update, News