DRIVING THE NUMBERS:
A look at the trucking industry’s financial landscape
Despite some of the negative implications, having a per diem
program is still an extremely beneficial tool for many carriers.
However, to gain support, it is key to have open communication
with drivers to educate them on the reason for the program and
share how all parties are impacted. This can be done at driver
town hall meetings and by providing them with templates that
help visualize the changes and model the reduced taxes. It
should also be noted that drivers can choose not to participate.
If they feel as though they are forced into a program, it may be
off putting. Letting them know they have a choice is vital. Some
large carriers have a portion of their recruiting and retention
website solely dedicated to explaining how their per diem
program works, along with a FAQ section and a feedback box
for open dialogue.
Jeremy Reymer, founder and CEO of DriverReach, a driver
recruitment management system, has spent the last 20 years
focusing on driver staffing, retention, and recruitment, and has
seen firsthand how imperative the communication on rollout is
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to carriers. “In an industry so driven by obtaining and retaining
talent, open communication around something as critical as
how you compensate your biggest asset (your drivers) cannot
be overemphasized,” Reymer said. “In my experience, the
companies that benefit the most when implementing a per
diem program start with open communication lines with the
people impacted by the change.”
While not every transportation company is a good candidate
or even eligible to institute a per diem program, if your OTR
drivers are disappointed by their refunds on April 15, it might
be time to crunch the numbers and see if you can save them
some additional tax dollars. Staying competitive on driver
compensation has never been more important. Implementing
a per diem program might give your company a boost in the
right direction.
To contact the author Randy Hooper: by phone (317) 580-2041
or by email rhooper@ksmcpa.com.
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Communication
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