10 Facts to Know When Using Truck Driver Signing Bonuses

10 Facts to Know When Using Truck Driver Signing Bonuses

Do you know why that is?

Well, your guess is as good as mine, but my guess will be that the reason for leaving their current trucking company is another shiny advert they sew on the way back home!

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Source: www.businessinsider.com

With other words, if they work in your company and they get  3 times better deal in the other company, what is there to stop them?

You probably think about it and get the answer by now, but yes, that’s right, your answer is correct! There is nothing there to stop them get more money! Or at least try to get it anyway!

Some of the advertisements that trucking businesses put out are way too good to be true, but hey, there are people that will give the chance despite the odds!

Fact Number 5: Stunning But True: There is no Shortage of CDL Truck Driver Jobs

Is There a Shortage of CDL Truck Driver Jobs?

With the trucking industry turnover rate of about 125%, in good economic times, there is a need for approximately 560,000 OTR drivers at all the time.

So, with that said, there is no shortage of CDL truck driver jobs; if anything there isn’t enough drivers to fill the empty spots!

That is why for, the truck driver signing bonuses exist. The trucking companies offer them to truck drivers that sign on with their companies!

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Source: www.truckdrivingjobs.com

Some of the companies will offer bonuses to new and experienced drivers while others will offer the bonus only to the drivers with long years of experience under their belt.

It will all depends, but one thing is sure though, and that is the fact that these bonuses are being offered by major trucking companies and smaller trucking companies on a nationwide basis.

Fact Number 6: Does Truck Driver Turnover Affect a Company Sign On Bonus?

Driver Turnover as a Reason for the Truck Driver Signing Bonuses Offers

If you check the drivers’ turnover, with the U.S. Bureau of Labor Statistics, or the American Trucking Associations (ATA), and any of the other relevant institutions, you will see that the driver turnover have a lot to do with this trendy truck driver signing bonuses.

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Source: www.fueloyal.com

They publish a regularly updated publication entitled Job Openings and Labor Turnover.

Through these publications you can see job openings, hires and regularly posts with updated numbers specifically within the trucking industry.

Trucking companies have to deal with many government agencies, with some of them being:

On top of all those rules and regulations they also are dealing with the shortage of a driving personal all the time.

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Source: www.entrepreneur.com

Desperate for quality drivers, they offer sign-on bonuses, higher salaries, safety bonuses, awards, and what not. And yet, there’s still a national shortage, conservatively estimated, of at least 200,000 workers.

So of course they have to fill the empty spots, but not with “empty promises” let’s hope!

They will go out of their way to make sure they can load the next truck in the morning so what you as a driver need to do is make sure that you get what you sign up for!

Fact Number 7: The Turnover Cost it’s Not a Main Reason for the Truck Driver Signing Bonuses Offers

How Much Does Driver Turnover Cost Anyway?

There was recently a study conducted on the cost of driver turnover. On page 2 of that report, we read:

The average replacement cost per driver is approximately $12, 0002, but according to some estimates that cost could exceed $20, 0003.

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Source: www.gaintap.com

Yes, we will all agree that those are some big numbers, but on the other side offering truck driver signing bonuses does not seem to be a solution for the problem with shortage. Neither will make drivers stay in the company!

Just because a truck driver signing bonuses are offered due at or shortly after hiring, will not change the fact that the drivers might leave before you even know, and join other company that offers something more shinier!

Fact Number 8: Is a Truck Driver Signing Bonuses Really Effective?

Truck Driver Signing Bonuses are Not That Effective After All

This right here is a million dollar question with no precise answer to it. I mean, it will all depend which side you are looking from, the owner or the driver?

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Source: www.money.howstuffworks.com

To be quite honest with you, so far practice has shown the good the bad and the ugly in the whole process of truck driver signing bonuses.

Most of the companies in order to attract and retain truck drivers are now offering truck driver signing bonuses. I am saying now, because only few years ago that was not a common practice. But I guess there was not and the big driver shortage at that time. (That’s an interesting topic for some other time).

While the truck driver signing bonuses seem like easy money for the driver, in most cases, getting that bonus means a big commitment.  As a part of the deal, the driver will need to commit to a certain amount of time (minimum one year) with the company.

This might sounds good on paper, but in practice, it might not be all as it seems!

See, what good you will get if you as an owner have a driver that is stuck with you, against his/ her free will?

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Source: www.intermodalcargoservices.com

The problem here is that if a driver is committed to stay with you, with this sign-in bonus, even if he or she becomes dissatisfied and resentful and wants to leave, the promised bonus is hanging above his/her head, and he is stuck with you! At lease for a little while!



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