Can ESOP Help Reverse Trucker Turnover Rates?
Though many people enter the trucking industry each year, some find themselves departing from the field just as quickly. Driver turnover rates are affected by numerous factors, and keeping quality talent can be difficult in a tumultuous economy. This can be problematic, as companies depend on proper staffing in order to meet client expectations. While some companies may not be able to offer higher pay or better benefits due to a slump in numbers concerning steady hires, many are offering something else. Providing employees with a small share of the company is proving to be a unique way to compensate drivers and help them feel more attached to the business as a whole.
Employee stock ownership plans (ESOP) are popular at many other businesses. Retail chains, for example, have been using this type of strategy for years. The longer an employee stays with a company, the greater their benefits become. This incentivizes them to become better acclimated with a company’s expectations and to produce better results. While salaries, bonuses, and traditional benefits packages can be offered by competitors and cause talent to leave a company, stock in the company itself can prove more lucrative overtime and easily outdo most competitors’ offers.
While this type of stock plan does help give employees a financial benefit, it also offers another perk. Many drivers have a tendency to feel like nothing more than a “hired hand” at a big company, and this lack of personal attachment can cause them to look elsewhere for employment. By giving a driver stake in the company, owners help build a greater sense of community within the organization. This is very valuable for boosting driver morale and creating long-term, mutually beneficial business relationships. Stock plans are more than just a great option for drivers – they’re a great way to help drivers become dedicated members of the team.
Stock plans can vary from company to company. While some plans may increase by a set amount every year, others increase exponentially overtime creating a multiplicative effect. Some are even based on the total number of hours drivers have logged with a company, presenting more options for part-time and independent drivers to get involved as well. ESOP is a feasible solution for companies of all sizes, and are great for attracting (and retaining) new drivers. Factors have indicated that these plans have already increased the employment numbers of many companies substantially, and the trend shows no signs of stopping.