Shift in Truck Driver Recruitment: Increased Focus on Pay Amid Market Challenges

Truck driver recruitment and retention have faced challenges due to overcapacity in the first quarter, yet there are emerging signs that competition for drivers is intensifying. Tom Bray, a senior industry business adviser at J.J. Keller & Associates, noted the fluctuating market conditions. “After the COVID-induced fluctuations, we’re normalizing, but now we’re left with excess capacity coupled with broader macroeconomic changes,” Bray explained. He mentioned that this uncertainty leads to a cautious approach among drivers and carriers, with neither party eager to make significant changes in employment terms.

Bray observed, “Drivers tend to stay put during such times, and carriers are not aggressively offering bonuses or raises. It seems drivers are just holding on without much change in their current positions.” However, the landscape appears to be shifting. The Q1 2024 Driver Recruiting & Retention Data Download Report, produced by the Professional Driver Agency (PDA) and Conversion Interactive Agency, indicated a marked increase in driver recruitment activities. The report highlighted a 109% increase in driver leads from social media ads and a 39% rise in driver job postings from March to April.

Priscilla Peters, Vice President of Marketing at Conversion, pointed out, “The ratio of truck driver jobs to job seekers is a key market indicator, and both metrics are on the rise, suggesting carriers anticipate an uptick in freight volume.”

Interestingly, the report revealed a significant shift in drivers’ priorities, with compensation surpassing equipment concerns for the first time since late 2022. Specifically, 31.6% of retention issues were related to compensation, followed by equipment at 31% and operations at 19%. Scott Dismuke, Vice President of Operations at PDA, explained, “Complaints about miles or lack of freight are decreasing, while grievances about pay rates are increasing. This suggests a shift in focus to better compensation rates.”

Dismuke believes that this change is driven by drivers’ recognition of the broader industry challenges, particularly the freight recession, which is not specific to any single carrier but a widespread issue. “Drivers are seeking predictability and, during COVID, many companies began to explore guaranteed pay models,” he added.

MG Truck Driving School in Glendale, Arizona, has noticed difficulty in attracting new drivers, not due to improving freight conditions but because of the aging driver demographic. “A significant number of drivers are reaching retirement age, and the younger generation is not stepping in to fill those roles,” stated Russell Hoyt, Director of Education at MG Truck Driving School. He emphasized that the decline in manufacturing and overall economic downturn exacerbates this trend.

Hoyt also highlighted the impact of reduced freight on driver pay. “With freight volumes down, drivers are seeing fewer miles and consequently lower earnings. This is prompting some older drivers, who might have continued working, to opt for retirement due to the decreased financial incentives,” he explained.

This evolving market dynamic underscores the need for a strategic approach to driver recruitment and retention, with a growing emphasis on competitive compensation to attract and keep drivers in an increasingly complex and challenging environment.