Why Salaries Are Safer Than Per-Mile Pay

Trucker compensation is going through a lot of transformations. Per-mile pay is becoming more stratified as the trucking industry splits into different types of routes and shipping constraints. More and more truck drivers want to become owner-operators and control a small fleet, even as market forces are making more and more companies consolidate. A lot of companies are also switching to a guaranteed base rate of pay instead of per-mile compensation to attract new drivers. Here are two reasons why switching to guaranteed compensation can make your company safer:

1. Promised rates are attracting the better drivers in the preexisting pool of applicants.

The idea of guaranteed compensation is popular, and for good reason. Truck drivers want stable pay, especially if they are not the ones to decide the flow of work or the routes they will be assigned. New drivers are more likely to apply to companies offering this type of pay, and even experienced drivers may switch companies for the financial security. That means companies that don’t make the switch may become second and third options and be left with the drivers the salary-paying carriers declined.

Better drivers are safer drivers, and they improve your company’s reputation. They also cost you less in equipment repairs, liability settlements, and insurance rates.

2. Drivers paid per mile have to choose between their paycheck and compliance.

The end of 2017 brought new compliance constraints. Trucks now have electronic logging devices (ELDs) that monitor drive times and adherence to regulations. Some aspects of the driving cap, such as including time spent at the dock or lack of flexibility for seasonal harvests, hurt drivers’ ability to complete their routes or drive as many miles as before. But if they’re paid by the mile, that means drivers have to make a hard choice between complete compliance and getting paid. Putting your employees in that position is bad for business no matter what choice they make. But if they have a pay guarantee, your drivers are more likely to comply with regulations and drive safely.

Go to J.E.B. Insurance Services, LLC. to see if new company policies can change your insurance coverage for the better. We provide commercial truck insurance in the states of Florida, Georgia, Texas, North Carolina, South Carolina, Tennessee, Illinois, Iowa, and Nebraska.

David Ott

David Ott