U.S. Xpress, Cargo Amp Up Incentives for Drivers

By Reagan Payne

Truck drivers are in high demand these days and the only thing more important than getting them is keeping them. That’s why companies like U.S. Xpress and Cargo Transporters are amping up their incentives to retain their own employees.

This industry has one of the highest turnover rates of any employee group. According to the American Trucking Associations, the turnover rate has reached an annualized figure of 96%. When you consider the obvious and urgent need for drivers, this figure becomes a lot more frightening.

Drivers are often incentivized to leave one company for another for better compensation, less time away from home, a lack of consistent communication, and the unpredictability of their paychecks when being paid by the mile. In addition to these factors, sign-on bonuses perpetuate this problem as drivers hop from carrier to carrier.

“With truck tonnage expected to grow more than 31 percent over the next decade, attracting and retaining talent in the trucking industry remains critical to meeting the freight demands of our expanding economy,” Chris Spear, CEO of American Trucking Associations, said in a statement.

Cargo Transporters, Inc. is taking the most mainstream and simple measure: raising the pay. By increasing the cents made per mile and calculating pay based on Practical Route miles instead of industry-standard Household Good (HHG) shortest miles used by most trucking companies, Cargo Transporters will increase pay by an additional 5 cents per mile.

“Our drivers, deemed essential like the 3.2 million others that share the road each week, continue to push our economy forward. We are excited the company is able to invest in these essential workers by providing this pay increase,” Cargo Transporters president and CEO Dennis Dellinger said. “We are committed to attracting and retaining the best drivers in the industry to complement our culture at Cargo Transporters.”

While U.S. Xpress does not plan to increase pay, it will lighten the load of living expenses for its college-going or child-rearing employees. Two years ago, the company debuted a tuition assistance program that just celebrated its first graduate. The Full Ride program offers free online college tuition for drivers, technicians, and up to two dependents through online classes with Ashford University.

“We really wanted to develop a program that helps provide some stickiness for those drivers, where we can attract and retain them and keep them a little bit more long term,” Amanda Thompson, the chief people officer with U.S. Xpress, said. “All of these employees are working full time and they are able to take classes online and work at their own schedule and pace. Employees will be able to obtain that degree for themselves and their children debt-free.”

As a result, the company has seen positive responses in employee morale and engagement with this program.

Both Cargo Transporters, Inc. and U.S. Xpress are following suit with the industry in placing technology at the core of operations.  Along with competitive pay, Cargo Transporters provides late model equipment and invests heavily in enhancing driver comfort and convenience.

U.S. Xpress is making strides from its partnership with Massachusetts Institute of Technology’s (MIT) Center for Transportation & Logistics. The two are coming together to develop a roadmap to improve driver efficiency. This move comes as no surprise as U.S. Xpress already has made impacts on trucker technology.

In 2019, U.S. Xpress introduced Variant, a new carrier brand built on technology. This company has improved efficiency by developing parking locators that reduce wasted miles finding open parking spaces; telematics, geo-fencing, and GPS tracking to route tractors to service facilities; and predictive analytics that bring tractors in for service before service failures occur over-the-road.

“Improving driver efficiency can ultimately enhance the driver experience and generate more value for our shipping partners,” U.S. Xpress President and CEO Eric Fuller said.

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