XRS : Truck Driver Pay Increase? Find the Money In Fuel Savings.

There's been a slew of media coverage about the truck driver shortage / driver retention issue (depending on your stance), and it's no longer confined to trucking industry trade publications. Very recently, the New York Times and Wall Street Journal called for truck driver pay increases and better working conditions.

Of course, if you're a driver, you're probably wondering what took these reporters so long.

For years, truck drivers have complained about low pay. Between trucking industry regulations that have cut into available drive time and rates that haven't kept pace with inflation, some carriers have sought to tap the pool of unemployed to fill their seats.

But those newbie drivers soon find that trucking is a difficult life and the pay just doesn't deliver.

So, what's the solution? Improve pay and retain the top-notch drivers you already have on your team.

According to ATRI, fuel makes up 39% of your operational costs. So, we don't have to tell you that when you increase MPGs and reduce fuel expenditures, presto chango, you save big money. And, those fuel cost savings can now be used to increase hourly/CPM rates or to offer financial incentives for fuel efficient driving behaviors.

And huge gains are ripe for the plucking.

With proper coaching, carriers can see a 20% reduction of fuel consumption for aggressive drivers (hopefully they're not on your team) and 5-10% for more moderate drivers.

Our own customers frequently report 10% improvements across their various fuel cost cutting initiatives.

In fact, we recently chatted with a customer who runs a 1200 truck fleet about their own efforts to reduce fuel consumption. Supported by real world data, they were able to lead a fleet-wide culture change that ultimately improved fuel efficiency by 11%.

That's a lot of extra money in the kitty.

So, how do you realize those fuel savings yourself?

The key to success? Partnership.

For starters, monitor driver behaviors that contribute to poor fuel efficiency, like:

• speeding
• hard braking
• inefficient progressive shifting patterns
• inefficient acceleration and deceleration patterns

But remember: this is data that should be used to motivate, coach, and support-not as a shaming tool.

By creating a positive framework and drawing connections between driving behaviors and dollars in their pockets, you'll help foster a sense of ownership, motivating your truck drivers to improve for their own financial success, and yours.

You want to keep those reliable, safety-conscious drivers in your trucks, right?

So, it's well worth the effort it takes to create a pool of financial resources you can tap to increase truck driver pay. And giving your drivers a percentage of those savings through incentive programs leads to a win-win scenario.

A wrong turn takes a driver on a mile detour. A route lands a driver in Chicago during rush hour. In each instance, they're burning fuel needlessly.

With greater asset visibility you get with GPS fleet tracking technologies, you can:

• quickly redirect a driver who's lost his or her way
• review existing route plans, finding those that overlap, and work to make them more efficient (read: use less fuel)
• make more intelligent dispatching decisions regarding time and route to avoid stop and go driving
• implement a strict route compliance model using the data now at your fingertips

Again, when you find those routing inefficiencies and fix them, you open up your margins and give yourself some wiggle room where truck driver pay is concerned.

A fleet of idling trucks is a gigantic money suck. So, knowing how much your trucks are idling-and the circumstances involved-allows you to educate and improve.

You may be completely stunned when you learn how much fuel your trucks are burning sitting still. That said, you'll also know which drivers you might work with to realize your greatest fuel savings (not to mention, uncover opportunities to improve driver satisfaction).

Automated idle reporting can help you establish a baseline of behaviors and track improvements-and these important insights can then allow you to lead conversations based on real world data.

Again, it's not about being confrontational, it's about realizing that both company and driver benefit from improved fuel efficiency. Work as a team is our mantra.

The trucking industry isn't for the faint of heart-running a trucking business requires sacrifice, foresight, and conscientious decision-making based on real data-but when you get it right, you can run a profitable business where everyone reaps the rewards.