The Main Driver Pay Trends to Know for 2023
The post – COVID-19 economy has seen a significant shift in consumer behaviour. Online shoppers worldwide have moved from purchasing items from physical stores to online shops. This demand for goods has put a logistical strain on the economy, causing a shortage of drivers. Trucking companies like https://migway.com/ are now looking to increase drivers’ pay in this new working environment. Let’s review a few trends expected in 2023:
The driver shortage that has plagued the trucking industry will still persist going into 2023. It has become increasingly important for trucking companies to add incentives to attract qualified candidates such as training opportunities and better benefits. The average truckload driver saw a wage increase of 10.9% between salary increases and bonuses.
For example, in the US, a combination of driver shortage and surging demand for goods in the post-pandemic economy continues to push driver salaries higher. This shows how truckers can benefit from a well-paying career.
Activity-based pay has been discussed as a way to resolve the common concerns of truck drivers. Rather than being paid by miles, drivers are compensated according to their activity. As part of the incentive-based remuneration, drivers are encouraged to perform excellent service rather than completing many stops within eight hours.
The more productive the drivers are, the more revenue your business will generate. Included in these activities are trip inspections, driver-assisted loading and unloading and more. The higher revenue realised can be used to pay the drivers better.
Rising Inflation & Talent Wars
As a result of increased inflation over the past year, the world’s workforce has had to pay more for consumables, medical costs and more. Even though inflation fell slightly in November from 40-year highs, workers’ confidence has tumbled. In response to the high inflation, employers are making compensation adjustments.
Research shows that 63% of executives plan to increase salaries. Additionally, a competitive job market is forcing employers to rethink salaries and benefits in order to attract workers and also keep them.
Influence of E-commerce
In recent years, e-commerce has grown in leaps and bounds and people are choosing to shop online rather than in a brick-and-mortar store. Convenience and price have played a large role in this. As a result, online shopping has grown into one of the most successful industries in the world.
However, it should be noted that e-commerce cannot exist without trucking services. As it depends on truckers to transport its goods, improvements in the e-commerce sector will also benefit the trucking industry. Therefore, drivers’ compensation will rise as well.
A significant development that will benefit the industry in the near future is urbanization. Throughout most parts of the world, most rural areas have been converted into urban centres. The trucking industry can broaden its scope by offering services to a much broader customer base. The higher revenue realized will go to improving the drivers’ salaries.
Urbanization will also result in higher logistics expenditure. This is because truckers will have a greater need to deliver goods more quickly and efficiently, resulting in higher wages for truck drivers.
Growing Freight Volumes
Freight volumes are expected to continue growing in 2023 even in the aftermath of the pandemic. In the US, the trucking industry transports around 11 billion tons of freight annually, which plays a crucial role in the country’s economy. These increasing numbers mean more job opportunities. As a result, trucking companies will have to hire more drivers and raise payrolls to meet demand.
Another area to look out for in 2023 in trucking is AI. The logistics industry has started benefiting from introducing AI and automation into its operations to improve driver earnings and employee retention. Artificial Intelligence is capable of assembling more tailored loads and offering shippers and brokers reliable and consistent solutions by also predicting changes in shipping demand.