Incentive Surge in Supply Chain

By Reagan Payne

As the global pandemic continues to surge in the United States, supply chain companies are continuing their efforts to address growing driver shortages. From the most basic idea of raising pay to creating unique solutions for drivers needing to observe quarantine, companies like Paper Transport Inc. and Werner Enterprises are working hard to do right by their drivers.

The pandemic, social distancing restrictions, and state licensing agency disruptions have pared down the number of new CDL holders. This has also pushed experienced drivers to work elsewhere.

“Those are real constraints on drivers that are not going to reverse quickly,” said Avery Vise, vice president of trucking research at FTR Transportation Intelligence. “Once a vaccine is widely available we may very well see a significant increase in the supply of people willing to be drivers. But even in the best-case scenario, we’re not looking at the widespread availability of a vaccine for months.”

Best Practices

So, it looks like companies will do well to keep the drivers they already have. Paper Transport Inc. said certain regional drivers will receive a 7% pay increase on average and a minimum weekly pay guarantee. This weekly pay guarantee addresses a long-time concern among drivers; inconsistent paychecks can often put a damper on budgeting and stability.

Cargo Transporters also announced a pay increase for drivers effective Jan. 3, 2021. The regional and national carrier said it will increase solo driver pay by 2 cents and team driver pay by 1 cent per mile.

Instead of general increases, J.B. Hunt Transport Services opted to pay out a $500 bonus to drivers. The company kept pace with rigorous supply chain needs amid this crisis and was rewarded as such.

Other companies are looking for more situation-based solutions. Werner Enterprises simply wants to ensure that drivers have the resources they need. They will continue to pay drivers impacted by the virus and allowing them to tap into an employee relief fund.

“Our focus on our drivers has been to support them with a comprehensive COVID financial package,” Werner Enterprises CEO Derek Leathers told Transport Topics. “We have chosen to not do a fleet-wide incentive, but rather focus money where the need arises.”

Reagan Payne is a staff writer for Wright Media. She can be reached at rpayne@wrightmediacorp.com