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Transportation Company Implementing Pay Raise to Address Driver Shortage

Transportation Company Implementing Pay Raise to Address Driver Shortage

The high-quality equipment, the detailed logistical plans, and the rest of the technicalities in the freight industry would all be useless if not for dedicated drivers willing to make the trip.

But dedication can only take a person so far. When the job’s cons begin to outweigh its benefits, the worker’s only choice is to seek improvements – whether in their company or elsewhere. Some truckers have been going from carrier to carrier, and even leaving the industry entirely in recent years.

Truck driving got hit with a number of challenges in a short time period. A large number of regulatory hurdles stretched carriers to the limits, while at the same time changing the work environment for drivers. Long hours, more rules to follow, more people to answer to, and lackluster compensation has led many truck drivers to try their luck in other lines of work.

The problem is made worse by the fact that many veteran truck drivers who got the bulk of their time in throughout previous decades are now retiring. The result is a growing driver shortage that is expected to get worse before it gets better.

With at least 50,000 positions needing filled and that number expected to rise in the next decade or so, carriers are forced to get creative. While some companies are turning to driverless vehicles in order to fill the gap, one company is experimenting with a refined pay model to attract the talent they need.

Kenan Advantage Group (KAG) is a bulk transport and logistics company based in Ohio. The organization is implementing a strategy to increase pay over the next three years.

The company says the measure is one they’re taking out of necessity, as failing to onboard new talent will lead to customers feeling the painful effects of the shortage.

The company has satellite and terminal locations in 80 percent of U.S. states, as well as in five Canadian provinces and territories. They say that given their position in the industry, they believe it is there job to take responsibility for making change in the trucking labor force.

Several other companies have implemented new pay models, with hopes to get more talent and increase their retention numbers as well.

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