Compensation complaints supplanted equipment-related issues as professional truck drivers’ top concern as 2022 ended, according to fourth-quarter survey data from the Professional Driver Agency (PDA). That sentiment is also in line with the American Transportation Research Institute’s top concerns for drivers every year.
This is the first time in the five-year history of the PDA survey that equipment isn’t the top concern for commercial drivers.
PDA’s findings aren’t a surprise to Leah Shaver, president and CEO of The National Transportation Institute (NTI) and an industry expert on truck driver wages. She said pay concerns generally rank near the top, if not at the top, of ATRI’s annual list and in other surveys of drivers both at the company level and industrywide.
“After all, compensation is the handshake deal that carriers as employers make with their drivers as employees, so it makes sense that would be a primary concern,” Shaver said. “Drivers have an expectation of what they’ll earn on a weekly and an annual basis based on the per-mile or hourly pay rate they earn when they join a fleet. Or in the case of a longer-tenured driver, based on what they earn in their most productive weeks and months.”
Shaver added that although NTI data is clear over the past few years that fleets have been “intentionally, frequently, and rapidly” raising both mileage and hourly base pay for drivers of all experience levels and tenure, the softening freight market of the past few quarters could mean less productivity for professional drivers, which can create inconsistent pay from week to week.
NTI’s National Driver Wage Index, which tracks momentum of driver wages across fleet types, trailer types, regions, and job descriptions, shows on average, drivers’ base pay climbed upwards of 15% between the middle of 2020 and the end of 2022. However, unpaid and unproductive days, due to the softening freight market, can often limit drivers’ ability to see those gains show up in their take-home pay, Shaver added.
See also: Freight markets remain in a lull ahead of projected upturn
“That’s why we’re a strong proponent of guaranteed weekly pay options for drivers,” Shaver explained. “It helps smooth their paycheck week to week and gives them more stability and predictability in their pay. This is a particularly important point for the tens of thousands of new entrant drivers that come into the industry every year. One of their biggest frustrations is up and down pay week to week, and that frustration often leads to churn of that segment of the driver population.”
Pay rates, miles-related compensation concerns
Scott Dismuke, PDA’s VP of operations, pointed out that miles-related compensation issues rose by 9% from Q3 to Q4, and since Q1 of 2022, miles-related compensation issues are up 21%.
Ironically, according to PDA, even while miles-related compensation issues are rising, drivers are complaining that their pay rate has declined. During Q4, drivers’ complaints about their pay rate decreased by 10% from Q3 totals.
“Pay rates have been going up consistently over the last couple of years during the COVID-related freight boom,” Dismuke said. “The drop in pay-rate complaints is a clear indication that pay rates are not the problem; it is drivers having the ability to log consistent miles to meet their income expectations. At the end of the day, it’s all about miles. If drivers are not able to consistently log miles, then it does not matter how high your pay rate is.”
Of note for newer drivers, NTI’s Shaver pointed out, is that their pay has seen the most upward momentum over the past few years. For example, year over year this quarter, drivers with one year of experience are earning nearly 6% higher base pay (mileage and hourly) than in the same period in 2022, whereas cap earners saw their wages climb 4%, according to NTI data.
See also: Cooling demand, recession concerns kick off 2023, though trucking can expect gains
NTI’s data also indicates that fleets are increasingly opting to offer guaranteed pay to their drivers. Over the past five years, the number of fleets offering guaranteed pay has consistently climbed, according to NTI.
“As of the current quarter, just shy of 40% of fleets said they provide guaranteed pay,” Shaver explained. “In the same quarter in 2018, fewer than 20% of fleets reported providing guaranteed pay. The dollar amount has steadily risen, too, in line with wage growth. Fleets providing guaranteed weekly pay are paying 20% more on average than the same quarter in 2020.”
Ultimately, when it comes to truck driver pay, Shaver stressed that communication is key.
“Many complaints related to pay can be resolved quickly and easily if drivers feel they can voice concerns and they know who to voice concerns to,” she said. “If they don’t feel they can voice concerns and they don’t know who to communicate to, such as a terminal manager or driver manager who can quickly elevate their concerns to the right person in payroll or HR, then their frustration turns into resentment, and they’ll jump to another carrier or leave the industry outright. For new hires at your fleet, whether they’re industry newcomers or an experienced driver, establish a regular check-in routine in their first weeks and months to ensure their pay is right, their equipment is operating properly, their routes and schedules are as expected, and if they have any questions or concerns that you can resolve.”
Equipment remains key, too
From a percentage standpoint, according to PDA, overall equipment issues dropped for the fourth quarter in a row, but mechanical/breakdown issues were up six percentage points from Q3 to Q4. PDA’s Dismuke noted that while the percentage of complaints has gone down, the number of drivers complaining about equipment has remained the same.
“While the percentage has dropped nearly six points from Q1 relative to other categories, the total number of complaints remains basically the same,” Dismuke said. “Equipment issues continue to be a big source of frustration for drivers and play a role in the driver’s ability to log consistent miles, therefore affecting their compensation. So, while equipment issues have dropped to the second-highest issue for drivers, they still play a significant role in driver turnover.”
The softening freight market will continue to be the biggest challenge for driver turnover. Dismuke maintains open and proactive communication, as well as quickly addresses driver concerns, which are the key to combatting turnover.
“Reducing turnover and keeping drivers in trucks will continue to be a challenge [in] 2023,” Dismuke said. “If you have drivers struggling with miles, they should be considered a high turnover risk. Having the ability to quickly identify and intervene with those drivers will be crucial in keeping drivers in the truck.”
