Posted on July 16, 2019
Compensation planning is an instrumental tool for truck driver recruitment and retention. There are many nuances to ensuring that fair, competitive and attractive compensation plans are in place. Salary adjustments, bonuses, allowances, insurance benefits, and more go into truck driver’s earnings, and fleets need to make sure their plans are financially sound and up to date. Follow these tips to develop a more effective trucker compensation plan:
- Define clear compensation goals. The trucking industry at large is operating on tight profit margins, and compensation has a significant effect on a company’s bottom line. Whether a fleet plans to keep pace with other trucking companies or lead the pack in rates per mile, they will need to incorporate it into their compensation planning and overall budget.
- Plan for allowances and benefits. An employee’s compensation isn’t limited to his or her base pay. Today, benefits and allowances are an important component of that final number. Fleets need to take into consideration the costs of medical care and any allowances such as food compensation that they may provide when creating their compensation plan.
- Keep an eye on the market. The economy changes and influences the industry in several ways. Fleets need to keep up with a dynamic and changing market to retain and recruit. In the current climate, annual reviews of this data may be insufficient to respond to changing market forces.
- Establish performance-based salary adjustments. Increasing base pay on the merit of seniority is an antiquated approach and rewards longevity over efficacy. Better drivers that consistently complete their deliveries on time and undamaged while operating their truck safely should receive bigger pay increases than lower or unsafe performers. Compensation plans should include tiers and a ranking system to easily see where employees land.
- Have clear compensation guidelines. If pay increases are subjective, it will cause issues among employees. Biases and personal relationships shouldn’t have any role in determining changes to pay. Developing a clear outline for when and how pay increases and bonuses occur will help address this potential issue.
- Give accolades to top performers throughout the year. Employee appreciation goes a long way toward retention. While every employee would love to receive a bonus, this isn’t always possible. If a fleet can only afford annual bonuses, they should look for other means to recognize top performers on at least a quarterly basis.
Employee compensation is a multifaceted issue which is crucial for truck driver recruitment and retention. Trucking fleets, both large and small, need to ensure they invest enough time and energy to get the return needed from their compensation plans. Contact the experts at Interstate Motor Carriers to learn how we can help your company make sound decisions while balancing your risk and reducing losses.
Posted on July 03, 2019
Since September of 2018, the Food and Drug Administration (FDA) requires any trucking company hauling food for consumption (human and animal alike) to comply with the Sanitary Transportation of Human and Animal Food Rule (STF). STF’s aim is to provide accountability for all steps of transporting food from farms to forks.
The rule calls for truckers hauling food to comply with the shipper requirements, which means following best practices for temperature-controlled cargo. FDA also indicated the ruling has some flexibility, allowing truckers to continue following best practices for cleaning, inspection, maintenance, and so on to prevent food from spoiling when transporting it.
Who Bears Responsibility?
There is some confusion over who is responsible for ensuring the sanitary and safe transport of food. The rule identifies shippers at the responsible party. While FDA defines this as whoever initiates the shipment, the International Refrigerated Transportation Association (IRTA) stresses that carriers and loaders need to abide by the STF regulations as well.
Carriers need to make sure they understand every step of shipper requirements and adhere to any supplied food safety plans to ensure a safe, unspoiled delivery. IRTA also recommends maintaining documentation should any lawsuits occur to protect carriers.
For example, maintaining clean trailers is critical to prevent cross-contamination. Even if a fleet employs standard cleaning protocols between deliveries, they should make a record of every cleaning in the event of a lawsuit. If food turns up contaminated, providing proof of a thorough cleaning prior to shipment can go a long way to absolving a fleet.
How the Ruling Affects Carriers Going Forward
The FDA didn’t set out to alter cargo insurance claims, however this ruling indicates a shift in risk approach. As a result, good record keeping alone may not always be enough to protect fleets from legal action related to spoiled food. The experts at Interstate Motor Carriers are intimately familiar with the risks trucking companies face when hauling food cargo. Contact us to learn more about reducing your trucking company’s risks.