Driver shortages, wage inflation, and the rising cost of living are making it very difficult for trucking companies to determine the appropriate pay ranges for their employees. Having wages outside of the market average can greatly impact a trucking company’s ability to attract and retain great drivers. Here are six ways to understand how your compensation packages stack up against your competition by examining their job postings.
1. Narrow Your Search
According to the Bureau of Labor Statistics, there are nearly 2.1 million heavy and tractor-trailer truck drivers in the United States. It’s easy to become overwhelmed by the number of job postings on career sites. To improve the quality of your analysis, you only want to compare your company to other similar companies. Make a list of your closest competitors in terms of operating area, number of employees, and industry niche. You can always expand your search if you aren’t finding exactly what you need.
2. Examine Title and Employment Status
Some companies use different job titles for the same type of position. For example, one company may use the term “driver” in a job posting and others might use “hauler”. Others may use terms like “senior” or “junior” to indicate levels of authority or experience. Also, pay close attention to the employment status for the position (part-time, full-time, hourly, contractor, etc.). Being mindful of these nuances can help you find the job postings that are most equivalent to the positions at your company.
3. Understand Job Responsibilities
Don’t assume that truck drivers at another firm perform the exact same duties as drivers with your company. Additional or fewer responsibilities could impact how much the competitor pays their drivers. Carefully review the responsibilities listed on each job posting to ensure the responsibilities are equivalent to yours.
4. Compare Qualifications and Experience Requirements
Your competitors may have different expectations and requirements when selecting the right drivers for their fleet. This could impact the amount that they are willing or able to pay their drivers. On the surface, a competitor who pays their drivers 20% more than your company might be an indication that your wages are too low. However, if the other company requires 10 years of experience when your company only requires 3 years of experience, that might explain the variance.
5. Review Salary Information
Some companies are extremely transparent about how much they pay their employees. This is especially true in states where employers are required by law to be transparent about their pay practices including California, Colorado, Connecticut, Nevada, Rhode Island, and Washington. However, not all companies will provide this information to the public.
Start by looking at the job description to see if the salary or pay is listed. This could be in the form of an annual salary, hourly rate, or a wide pay range. If a range is used, you can usually assume that the average driver will qualify for the middle of the range.
If the pay ranges aren’t listed, there are other options to find out how much your competitors pay their drivers. Some career sites, such as Glassdoor, Payscale, and Indeed provide estimated pay ranges for certain roles based on information gathered from current and former employees. Keep in mind that this information is offered voluntarily and may not be 100% accurate.
6. Factor in Other Perks and Benefits
Not all compensation comes in the form of wages. Total compensation typically includes other perks and benefits such as vacation time, pensions, health and life insurance, and tuition reimbursement. Most companies will provide a general list of benefits in their job postings. However, you may find a more comprehensive list of perks and benefits on the career page of their website. Don’t forget to include non-monetary benefits (like allowing a pet to ride along) that are valuable to employees.
Complete a Competition Analysis the Easy Way
Tracking down and recording the data from thousands of job postings can be an exhausting and time-consuming process. That’s why the experts at Inflection Poynt have created innovative tools that seamlessly analyze hundreds of data points from industry benchmarks, government wage projections, and job boards. Contact us today to find out how we can provide the insights you need to keep your wages competitive.