He claims that in the second half of 2010, there were no businesses offering sign-on bonuses. “From zero to almost 50% of the companies offering a sign-on bonus or transition pay, that’s how far we’ve come.” (Transition pay involves paying drivers a higher per-mile rate during the first few months of employment, when the number of miles driven is usually lower as they get accustomed to the company’s operations. ).
Director of human resources Jeremy Stickling says, “We’ve always believed that if a driver comes here, it needs to be because we are what he or she wants, but the environment was tough enough so we decided to try it.” If you have a qualified candidate looking at online ads and 15 companies appear to be fairly similar and 12 have sign-on bonuses, you might not be on the list if you’re the one without the bonus.
However, he says, “we took a no-gimmicks approach. In some [bonus programs], you must spend a year walking on water. After orientation, we’re doing half of it for free, and the other half will be paid if you’re still working after 90 days. And it appears to have been successful; we have some strong initial burst “.
We considered it and concluded that we couldn’t and didn’t want to compete with this stuff. I believe it is disrespectful to a sizable portion of drivers and violates our culture. We declared that we would defy convention and devote our resources to employee retention. The results have been great for us. We have the highest retention rate of any major expedite company, in my opinion. “.
They almost always pay out in a year or less, and the majority of them have a sizable payout in less than 90 days. He claims that sign-on bonus programs today are simpler than those that existed before 2006, when there were numerous qualifications. All of the ones I’ve carefully examined have been fairly simple. “.
Why do companies offer trucking sign-on bonuses?
To entice new drivers, many businesses decide to offer trucking sign-on bonuses. Although it may seem like an extreme measure to take, many hiring managers frequently employ this tactic as part of their recruitment strategy. This is partly because it’s necessary to replace those who intend to leave the workforce.
What is a trucking sign-on bonus?
Trucking sign-on bonuses are financial rewards that hiring managers give to new hires. They typically offer prospective employees a certain sum of money in exchange for their acceptance of a position and agreement to the terms of the business. Although the amount of a company’s sign-on bonus may vary, it typically exceeds $1,000. When the employee first starts working for them, the company may decide to pay this amount, or after they fulfill certain requirements.
Tips for reviewing trucking sign-on bonuses
You can review each trucking sign-on bonus offer you get using the following advice to make sure you pick the best one:
How to calculate a trucking sign-on bonus
When deciding whether to accept a trucking sign-on bonus, it might be a good idea to compare your current annual salary to what you could make in a different position. You can use the following steps to determine the value of a trucking sign-on bonus and whether it makes sense for you to accept it:
1. Calculate the base pay
Finding out what your base pay will be should be your first step. Truck drivers may receive an annual salary from some trucking companies or a flat rate for each mile they travel. You can use the following formula to determine your annual base pay if the company for which you are applying pays its drivers per mile:
Annual base pay is calculated as follows: (pay per mile) x (weekly mileage average) x (52 weeks).
2. Add the base pay and sign-on bonus together
Next, add your annual base pay with your sign-on bonus. To calculate your expected salary in your first year of employment, use the formula below:
First-year earnings = (annual based pay) + (sign-on bonus)
Make sure you carefully review your hiring contract to make sure you can fulfill the conditions of receiving your sign-on bonus within your first year of employment.
3. Compare with your current earnings
Finally, contrast your current annual salary with the potential total annual earnings you would receive if you accepted the job offer. To figure out how much these salaries differ from one another, use the formula below:
Wage difference = (current annual salary) – (first-year earnings)
Then, if you accept the new positions, use this information to determine whether you would earn more or less money in your first year of employment.
Example of how to calculate a trucking sign-on bonus
To get you started, here is an example of how to calculate a trucking sign-on bonus:
Johnathan is given a job offer from PHL Trucking Company to drive trucks. He receives an offer letter with a base salary of $0 and a sign-on bonus of $1,500. 33 per mile. Johnathan must work for PHL Trucking Company for a full year in order to receive the $1,500 sign-on bonus. Johnathan’s current employer, Heavy Trucking LLC, pays him nothing. 37 per mile. He calculates the variation in base pay that each company provides using the formula below:
($0. 33 per mile) – ($0. 37 per mile) = -$0. 04 per mile.
Johnathan’s base salary would decrease by $0 if he accepted a position at PHL Trucking Company. 04 per mile. But Jonathan wants to know if, after the first year, the sign-on bonus makes up for this disparity. He calculates that he travels 2,500 miles on average each week. Since there are 52 weeks in a year, Johnathan uses the following formula to determine his annual salary at his present position:
($0. 37 cents per mile) x 2,500 miles weekly x 52 weeks equals $48,100 annually.
Johnathan learns that in his present position with Heavy Trucking LLC, he earns about $48,100 annually. He then calculates his first-year salary at PHL Trucking Company using the following formula:
($0. 33 cents per mile) times 2,500 miles weekly times 52 weeks ($1,500 sign-on bonus) equals $44,400 annually.
Using the following formula, Jonathan deducts what he would earn in his first year at PHL Trucking Company from his present annual salary:
($48,100 per year) – ($44,400 per year) = $3,700
He understands that if he accepts the position at PHL Trucking Company, his first-year pay would be $3,700 less than it is now. Johnathan decides to continue working for Heavy Trucking LLC.
The TRUTH about Sign on Bonuses for Trucking jobs
Do truck drivers get sign on bonuses?
The trucking industry is currently experiencing a driver shortage. A sign-on bonus is being provided by more trucking companies to new drivers as a result of a shortage of drivers. At the best trucking companies, you can earn a good salary and be rewarded for your hard work.
What is a transition bonus in trucking?
“We’ve increased the number of businesses offering a sign-on bonus or transition pay from zero to almost 50%.” (Transition pay involves paying drivers a higher rate per mile in their first few months when the number of miles run is typically lower as they get used to the company’s operations.) ).
How much is Schneider sign-on bonus?
For experienced drivers, a $10,000 limited-time sign-on bonus is payable over 12 months. Limited-time sign-on bonus of $5,000 payable over 12 months to inexperienced drivers
How much is CRST sign-on bonus?
We offer up to $5,000 sign-on bonuses, $500 military bonuses, as well as numerous mileage, safety, and referral bonuses. In 2020, drivers earned $3 million in bonuses.