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‘P3’ Style Compensation for Drivers ‘Here to Stay’

Pay-per-productivity has a nice ring to it – increasingly so for both carriers and drivers.

Data availability and technology will continue to change the way carriers compensate drivers, says the Prosperio Group’s Beth Carroll, who spoke recently at the Recruiting and Retention Conference. As a result, CCJ magazine reports, performance-based pay is becoming a bigger part of carrier pay packages, including sophisticated pay structures that put drivers’ income in their own hands.

Such pay incentives are “here to stay,” Carroll added.

Pride Transport’s Lindsey England joined Carroll in the discussion, explaining that his carrier’s new program centers on a scorecard for drivers that encompasses data covering four key areas: fuel efficiency, idle time, miles driven and on-time service.

Drivers can accumulate a total of 1,000 points every month, depending on their performances, which are weighted toward productivity, reports CCJ. Drivers continuously bank points, and in every increment of 10,000, their pay gets bumped up.

“Once the drivers understood how it worked, most were happy,” noted England. “So it’s in our own control how much of a raise we get?” she paraphrased one driver.

Carroll believes similar programs will gain in popularity as data mining technology becomes more available to a wider range of carriers.

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