Moving Words – Competing for Talent
Timothy Brady
“Talent wins games, but teamwork and intelligence wins championships.” – Michael Jordan
To paraphrase my previous blog, “Insanity” : Doing the same thing the same way while expecting different results currently describes the trucking industry, especially when it comes to driver recruitment and retainment.
Admittedly, the moving industry does a far better job when it comes to finding and keeping truck drivers. However, the recruiting/retainment actions of large freight carriers have a collective impact on the pool of CDL holders willing to become van operators. Let’s look at where the trucking industry stood in 2006 compared to the challenges moving companies face today in locating and keeping quality van operators.
According to a previous July, 2003 study by the Department of Labor Statistics, the average annual pay for a truck driver was $32,134 with driver turnover rates above 100%. In comparison, the average pay at this same time for LTL and union drivers was around $65,000 per year with turnover rates below 20%.
In 2006, the average annual salary according to the American Trucking Association for a truck driver was $35,000.
Jump forward to 2022, according to Talent.com, and the average freight trucker earns $62,470 annually with starting pay around $48,000. According to the American Transportation Research Institute’s 2022 ATA Driver Compensation Study (released August 10, 2022), “The 2022 ATA Driver Compensation Study found the median pay for truckload drivers increased 18% year-over-year to $69,000 in 2021. The median compensation for less-than-truckload fleets hit $73,000. The median salary for a driver at a private fleet was $85,000. The study covered fleets with more than 135,000 employee drivers and nearly 20,000 independent contractors.”
As you can see, driver pay has nearly doubled for truckers who bump docks. Now, while this still hasn’t solved the freight industry’s shortage of CDL Holders, it’s made a huge dent in their turnover rates. However, the question remains as to how these pay increases compare to your moving company’s compensation for van operators during the same 16 years?
Talent, knowledge and skill level required to be a household van operator are considerably higher than that of a trucker who’s bumping docks or doing trailer pick-and-drops. So if a driver is given a choice between a job of bumping docks, or acquiring the knowledge and skills plus the physical effort required to pack, load, drive, unload and unpack household goods, is the pay going to be enough to encourage him or her to become an van operator? The answer to this question is something every moving company needs to consider when looking to hire van operators.
In any economy, the worker carefully considers whether the pay offered is adequate compensation for the education and talent required. Last century or not, “Show me the money!” still resonates while hiring.
“We are not here to curse the darkness, but to light the candle that can guide us thru that darkness to a safe and sane future.” – John F. Kennedy
