Posted on February 21, 2019
The driver shortage is a problem for all trucking companies. As many drivers gear up for retirement, fleets need to fill their driver seats with new truckers. Unfortunately, recruiting millennials has been something of a challenge for many fleets. If trucking companies want to attract this demographic, they’re going to have to make some changes to increase their appeal.
- Simplify the application process. Many companies now offer online applications that are easy to fill out and understand. Millennials work with and use technology on a daily basis. If a trucking company’s application process can’t keep up with modern technology standards, millennials aren’t going to bother applying.
- Be more social. Millennials spend a significant portion of their day on social media. They use it to keep in touch as well as look for jobs (62%). Truckers themselves report using social media platforms daily (75%) so the opportunity for crossover is huge. Posting about job openings on social media and encouraging existing employees to share the post can help spread awareness and increase millennial interest.
- Emphasize work-life balance. Millennials are the first generation that is willing to take a cut in pay in order to be happy while working than to make more money but be miserable while doing it. Trucking companies will need to underscore aspects of the job that appeals to younger applicants such as flexible hours, the opportunity to travel and see new places, and time with family.
- Push high-tech systems. The existing pool of truck drivers may grumble about learning new technology, but millennials prefer it to antiquated systems. Trucking companies need to emphasize that driving a truck is much more than sitting behind a wheel. Highlighting apps, software, and other high-tech advancements can pique younger generations’ interest.
- Cultivate an irresistible company culture. Applicants want their potential employers to see them as more than just another resume. Millennials will overlook a smaller salary in favor of benefits and perks like mentoring programs, appreciation events, and employee outings.
Trucking companies need to address all the challenges and risks facing their operation. To learn more about managing recruitment challenges and trucking risk, contact the experts at Interstate Motor Carriers.
Posted on January 25, 2019
The Tax Cuts and Jobs Act has resulted in significant changes to tax law not seen since the Reform Act of 1986. With modifications made to multiple tax codes, trucking companies need to be ready to address the changes. The following are some of the most significant alterations trucking businesses need to prepare for:
- Depreciation and equipment deals. Prior to the new tax law, businesses could only take advantage of bonus depreciation for new equipment. Now, lawmakers expanded this coverage to used equipment as well. In addition, trucking companies will be able to write off 100% of the cost of depreciation under the new rules. This write-off will decrease by 20% starting in 2023 before closing out entirely by the close of 2026.
- Updates to per diem rates. The IRS issued increases to special per diem rates effective through September 30, 2019. They increased per diem rates for travel within the continental United States from $63 to $66 and travel outside of the continent from $68 to $71. Another significant change is employee drivers can no longer take the per diem deduction. Considering the driver shortage and retention challenges, this is a benefit trucking companies should consider carefully.
- Changes to tax rates. One of the primary objects of the tax reform was to encourage competition by reducing the corporate tax rate. C corporations now enjoy a tax rate of 21%, a significant decrease from the previous 35%. S corporations saw a 20% deduction for domestic business income that meets certain qualifications.
These tax changes will affect planning and budgeting for trucking companies in 2019 and beyond. Fleets need to develop long-term strategies to address these changes or they run the risk of missing out on potential tax savings. As always, we recommend you speak to your accountant and tax advisor to make sure these changes are applicable to you and your trucking operation. To learn more about risk management strategies and innovative truck insurance solutions, contact Interstate Motor Carriers today.