New Research indicates Truck Drivers paid a percentage split are more satisfied with their pay.

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New Research indicates Truck Drivers paid a percentage split are more satisfied with their pay. 

Data also suggests seasoned drivers gravitate towards Percentage Split Pay

A recent study by driver retention experts, Stay Metrics®, identifies important data that will help carriers develop better driver compensation packages and improve driver satisfaction.

The research reveals drivers are more satisfied with percentage split pay, meaning they get paid a percentage of the invoice that is billed to the customer, instead of hourly or per mile.

The data was compiled from 4,000+ drivers from 31 different carriers. Of those drivers, 360 are paid hourly, 1795 are paid per mile, and 2364 are paid percentage split. Of those 31 carriers, 22 of them pay their drivers in two or more ways. The findings suggest:

  •  Drivers paid on % split are 31% more satisfied with their pay than hourly and 29% more satisfied than per mile. The chart below details how fair drivers think their pay is compared to the amount of work.

The Pay is Fair Compared to the Amount of Work 

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  • Drivers paid hourly and per mile generally believe they are underpaid more than % split drivers, as shown in the chart below.

I Feel I am Being Underpaid Compared to Peers in the Same Profession

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Research also suggests that:

  • Drivers that seem to gravitate towards a % split arrangement have driven for more carriers.  “This could suggest that a % split appeases the concern of constantly thinking there are greener pastures elsewhere,” said Tim Hindes, President and CEO of Stay Metrics.

How Many Carriers Have You Driven for?

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  • Findings indicate drivers paid on percentage split also seem to be more satisfied with their dispatchers.

“In its entirety this study reveals drivers paid a fixed % of the invoice charged to the customer feel a sense of fairness,”said Hindes. “This data is important as carriers look to identify pay packages that will increase satisfaction.”

Tim Judge, Director of Research at Stay Metrics, noted that research shows that there is a high correlation between perceived input into one’s pay and pay satisfaction.

Past research indicates, “Employees who feel they have input into how their pay is determined are much more likely to be satisfied with their pay, even controlling for the amount of pay they receive,” he said. “Thus, how someone is paid is as important as what they are paid. I think paying based on customer charge leads drivers to believe that their pay is fair because it shows an alignment between what the carrier gets and what they get.”

This study is the first of two parts looking at pay types and driver satisfaction. Findings from part two will address whether higher pay satisfaction means better retention.

About Stay Metrics

Experts in driver retention, the Stay Metrics team are the creators of Drive for Gold, a proven retention and rewards platform. For more information, visit www.staymetrics.com.

For more additional information contact info@staymetrics.com