Why Offering More Benefits Could Solve a Shortage of Truck Drivers

Cost Containment StrategiesIt’s common knowledge that some drivers are paid based on their driven miles. This can already dissuade people to apply for a job, with road congestion in many roads indicating that they would need to spend more time behind the wheel just to earn a decent amount.
U.S. trucking companies should reconsider adding more employee benefit solutions to solve a shortage of truck drivers, which is the main cause of rising shipping costs in the country.

Dire Shortage

The American Trucking Association expects that companies would need to fill 174,000 truck driver positions by 2026. This represented a huge jump from a shortage of around 36,500 in 2016. If the current pace of demand continues to grow, the industry would have to hire almost 900,000 drivers in the next 10 years.

The shortage has the most significant impact on retailers, which paid up to 30% more on costs for shipments in April year over year. Companies pass on these costs to consumers, so it’s safe to assume that the lack of drivers affects each part of the supply chain.

Domino Effect

Some major brands, such as Coca-Cola, Hasbro, Procter & Gamble, and Nestlé are expected to pass on the higher trucking rates to its consumers, along with many food manufacturers. Amazon has already done this as evidenced by its more expensive shipping costs.

Unless companies do something about driver salaries, the situation may continue to worsen in the next few years. In some cases, employers would need to offer more than just a big paycheck to convince people to drive a truck.

Being a truck driver is never easy given the hectic schedule and on-the-go lifestyle. As a business owner, you must think of effective ways to entice more people to get this job and keep it.