Roehl Transport raises driver pay with new model
Summary
Time is money, but miles have long been the preferred unit of measurement when it comes to charging shippers and paying drivers. That can be problematic for shrinking lengths of haul and an industry thats fraught with delays like traffic snarls and shipper/receiver detention – losses in productivity that dont provide fleets with a lot of incentive to convert to an hourly pay structure. Norlin said the shift away from a static CPM on all miles in favor of a sliding mileage scale based on length of haul – and taking into account the value of a driver’s time – has made the companys shorter hauls more appealing to drivers by offering compensation for routes that, while short, are often time consuming. Productivity, Norlin said, moved slightly higher following the change, but has since settled back "to near identical levels prior to the increases." With the ability to earn more money on shorter hauls, Norlin said the new pay structure has given drivers incentive to take multiple short drops versus waiting for a single longer one.
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