A couple of questions has come to the management team in the past couple of months that we needed to answer when we decided to look into our sign on bonus. First one was. Why do drivers want to leave a company? Second is how can we get our drivers to stay?
We believe drivers leave the company they decided to choose within the first 6 months for one main reason. They aren’t making enough money while they are still learning and getting used to the company they just signed up for. Do we have drivers that are hired and it just clicks and they start making a good paycheck right away? Yes, absolutely but we wanted to put in an extra incentive in there for our drivers that are hired into our company that it takes a little bit more time for them to learn the lanes, system, Qualcomm, E-logs, preplanning and anything else that a newly hired driver would need to get acclimated to. We decided to implement what we call at West Side Transport “Transition Pay.”
Transition Pay is an extra $100 a week on top of your regular mileage pay that we pay to every driver that is coming on board with us that is running our Midwest Regional or Regional positions. West Side pays you the additional $100 a week for 25 weeks for a total of $2,500. Most companies in the industry are right now offering a sign on bonus of some sort that will pay out eventually either after 3 months to 2 years. At West Side Transport a driver who just finished orientation and was hired will receive his first $100 of the transition pay and will have 24 more weeks of the Transition Pay.
Example: Jane Doe is hired with 1 year experience and is running our home biweekly lane. Jane’s mileage pay is $.38 per mile starting pay. If we took the Transition Pay and put it in a per mile pay she would receive an additional $.05 (nickle) a mile if she ran 2,000 miles her first week. That alone would bring her pay to $.43 per mile. Also with our current experienced bands Jane would receive a $.01 raise after her first month of employment with West Side Transport bringing her base mileage pay to $.39 per mile and with the Transition Pay her pay would be $.44/mile.
We believe by providing our drivers with additional money while they learn our system and different ins and outs of it we will still be able to provide our drivers with a good paycheck that will make them proud to drive for West Side Transport.