Competition for quality drivers has reached an all-time high
Currently, the industry is short over 60,000 drivers, but most truckers say it feels like more. So what can a trucker do to solve this problem? Many have doubled down on lease purchases and owner-operator programs to attract drivers. But how are they doing it?
Pay on percentage – Freight rates are at all-time highs and owner-operators know it. Carriers paying on mileage are at a disadvantage when freight rates are climbing. Adjusting mileage pay to compensate can be administratively crippling for a carrier. If mileage pay is necessary, consider a per-load override or “mileage booster” to keep pace with freight increases.
Keep onboarding costs low – Efficient and effective orientation is critical to starting a good relationship with an owner-operator. Try and utilize electronic document processing to complete easy paperwork ahead of the orientation, such as Docusign or SignNow. Secure damage chargebacks via Deductible Buyback instead of collecting high escrows. Additionally, offer settlement deduct insurance programs to minimize owner-operator startup cash.
Access to quality equipment – On average, owner-operators spend $2,400 per month on truck payments. Finding quality used equipment to fit a budget and keep maintenance costs in check is critical to owner operator’s success. Lease purchase programs and equipment financing can reduce the barrier to entry for a company driver looking for the next career step. Avoid leasing programs designed to take advantage of an owner-operator’s financial position. Are projected owner-operator revenues and expenses giving the owner-operator better net income than a company driver? If not, you may need to reexamine your approach.
Resources
American Truck Business Survey, September 2019