Fleet Management News & Business Info | Commercial Carrier Journal
Issue link: http://read.uberflip.com/i/949884
44 commercial carrier journal | march 2018 selected monthly based on COTC's goals. e options are safety, produc- tivity or a "new category," Williams says. In February, the chosen category for focused pay was safety. Last year, the company's average annual wage was $57,000 before the paid bene ts. Adding in this bene t, its average driver pay was $63,500. So far in 2018, the average driver pay is trending at $62,150, and with the performance in- centives, some drivers will crest $80,000. COTC also developed a mobile app for drivers to track their performance in each category to predict their monthly payout. A vacation pay program also begins on day one with an accrual rate of between 1 to 3 cents per mile depending on experi- ence, and drivers can use the pay accruals for more than taking days o . e com- pany also o ers paid sick days. "We know things happen in life and that a lot of Americans live paycheck to paycheck," Williams says. " e account becomes a slush fund that drivers can withdraw monies from, just like a savings account." Expanding benefi ts Driver bene t programs are paid 100 percent by COTC for life, health, vision, dental and short-term disability insur- ance. Beyond the insurance bene ts, the company also has a tax-savings program built into the pay package. e tax program consists of a safe harbor 401(k) plan with matching contri- butions and no vesting period, exible healthcare spending accounts and per- diem pay that disperses weekly. e safe harbor 401(k) and health insurance are among bene ts that COTC shares with other atbed carriers in the Daseke family of companies. COTC was acquired by Addison, Texas-based Das- eke (CCJ Top 250, No. 37) in 2013. "If drivers use all the bene ts, the tax plan is very good," Williams says. " ose kinds of things help drivers increase their net income with pretax dollars." COTC's per-diem pay will remain in place a er recent changes in the Tax Cuts and Jobs Act signed into law last year by President Trump. Companies that have a per-diem pay plan such as COTC's can deduct between $17,000 and $20,000 of income annually for every driver. At COTC, this payroll deduction can save drivers between $3,000 and $4,000 in taxes annually. Finding the right fi t While high pay and bene ts certainly grab drivers' attention, COTC's core strategy for recruiting is to screen drivers to ensure the company is a good t for the individual, Williams says. COTC does not use "recruiter" in any job title. e company employs "hiring coordinators" who ensure that job ap- plicants meet its quali cations and stan- dards to ensure a t. e t also is based on the driver's willingness to work and share core values and beliefs in safety. "We don't talk to (drivers) about pay before we discuss t," he says. "We are a process-driven company. We look at every one of our trucks as an individual franchise. We know how they make money, and if drivers follow the direction of the franchise, they will be successful." Individual attention As the company has grown, Williams has placed an emphasis on developing technology to keep a personal touch with drivers. Despite operating more than 300 trucks, "we know all our drivers' names," he says. e name recognition is nurtured by a policy that o ce and shop employees fol- low for using the driver's name whenever they communicate information. When sending an email to the shop, an o ce employee would not write "Truck 863 is here for service," but rather "Bill in truck 863 is here for service." To help create a personalized ex- perience for drivers, COTC has radio frequency identi cation tags on all its trucks. As drivers enter the eet's yard, an RFID reader triggers the information that appears on a large screen. e driver is greeted by name and given relevant information about past loads and safety and recognized for recent accomplishments. Similarly, screens pop up on o ce monitors to let sta know which drivers are entering the facility to "make sure we put a name with a face," Williams says. Each department sees di erent informa- tion to facilitate work for the driver – such as vehicle maintenance or training meetings – while he and his equipment are at the yard. All these e orts contribute to COTC's driver satisfaction and retention. e company's annualized driver turnover rate is 85 percent, but that includes driv- ers who do not pass orientation or drug tests, as well as those who retire or leave the industry, Williams says. Once drivers understand COTC's ben- e ts and culture, turnover drops signi - cantly, he says. Turnover for drivers with the company from one to three years is 70 percent; three to ve years, 31 percent; and ve or more years, 18 percent. Excluding terminations and retirees from the three-to- ve-year and ve- year-plus groups, the turnover rate is 22 percent and 8 percent, respectively. Compared to industry trends, "that is pretty low for a true long-haul irregular- route company," Williams says. CC J I N N O VATO R S pro les carriers and eets that have found innovative ways to overcome trucking's challenges. If you know a carrier that has displayed innovation, contact Je Crissey at jcrissey@ccjmagazine.com or 800-633-5953. Rick Williams, COTC's CEO, says his experi- ence as a truck driver formed his under- standing of the value that high-quality drivers add to a trucking company.