Empowering Truckers: Practical Mileage Pay as a Driver-Centric Compensation Model
Commercial truck drivers or professional drivers are the unsung heroes of the American industry. In fact, truckers across the nation are responsible for shipping more than 80% of all the nation’s annual freight, accounting for 11.4 billion tons of goods. Therefore, to say truckers are important to the economy is the understatement of the century. They are not only important, they are vital.
Therefore, if you want to get into an industry where you know you will have job security and be considered a modern hero, then trucking might be the career for you. If you are considering truck driving (or any profession for that matter), your compensation is also pretty important. In fact, according to a Stay Index Study, sufficient pay is the top factor in driver retention in both women and men who choose the profession, making it the most basic need. Thankfully, at Barr-Nunn, we agree and have committed to offering our employees practical mileage pay for more compensation.
Understanding Practical Mileage Pay
Practical mileage pay is a type of compensation that is based on the distance between the trucks’ origin and their destination, tabulated based on known routes that are regarded as the most efficient in terms of hauling the load in question and based on the truck itself. With practical pay, truck drivers can choose to take a different route than the one outlined or “paid for”, but they will be paid based on that predetermined route and the rate that has been negotiated.
Actual miles, by comparison, are exactly what they sound like, the actual miles a truck driver drives to deliver a shipment or trucking miles. This is also sometimes referred to as “hub miles” in the industry. Another way that miles are paid is the HHG or “household good miles” model. This is based on the shortest miles or the shortest route between the beginning point and the destination. It does not take into consideration the best route for the load or even the fastest route. It is solely based on the number of miles from point A to point B, regardless of infrastructure, traffic congestion, or speed.
Practical Mileage Pay in Action
Practical mileage is often considered a more accurate representation of the miles that a trucker actually puts under their wheels throughout the delivery process. Although the numbers will vary based on many factors, most truck drivers will note an increase of between 5% and 8% more paid miles with this type of compensation model. Therefore, when comparing practical miles vs short miles, or even practical miles vs HHG, practical mileage pay is more advantageous for drivers in terms of compensation, making it a popular option.
Practical mileage pay is beneficial because it allows truckers to bypass congested areas, bad weather, and more while still getting paid for the miles they are driving. It doesn’t simply consider the shortest route without using any common sense for the practicality of that route. Therefore, many truckers prefer this form of pay, though not all companies offer it as, sadly, they can get away with paying their truckers less if they don’t offer practical mileage pay.
Implementing Practical Mileage Pay
Putting practical mileage pay into practice within a trucking company takes a commitment to trying to provide the most fair pay per mile. Each company will implement this pay system slightly differently based on several factors. The challenge is switching over from a pay system that has likely been in place for years. However, it is a more accurate and fair way to compensate truckers, so it should be given serious legal and regulatory consideration.
The Future of Compensation Models in the Trucking Industry
Technology and its incorporation into the trucking industry are key in effectively quantifying the best routes and tracking vehicles. Technology has proven to be a game-changer when it comes to utilizing practical mileage pay. GPS tracking systems, for example, provide real-time data to truckers, allowing them to avoid potential hazards. Driver assistance systems help by offering lane departure warnings, adaptive cruise control, and even collision warnings. The technology allows optimization of GPS systems that look at factors like telematics, fuel consumption, and more that help a trucking company come up with the most efficient route that the practical mileage will then be based on and will determine what a trucker is paid.
Telematic systems are another noteworthy technology that is changing the trucking industry for the better. This tech is a blend of informatics and telecommunications that combines to predict and improve a vehicle’s performance and condition. Telematic systems include onboard diagnostics, GPS technology, and real-time data about a truck’s condition and performance. This all has to do with how drivers are compensated, through the preferred route based on performance and other factors, making it a fairer system.
Empowering Truckers Through Driver-Centric Compensation Models
Our commitment to our drivers at Barr-Nunn is unparalleled. Barr-Nunn has proudly offered the coveted practical mileage pay for many years as we know it is a more accurate and fair compensation model for our drivers. As such, our professional drivers are better compensated and more satisfied with their professional situation. Practical mileage pay ensures no driver is shorted or given less pay based on an unrealistic route. Instead, through the use of innovative technology, we ensure that our drivers are paid fairly through practical mileage.
To learn more about Truck Driving options with a Certified Top-Pay Carrier, contact us at Barr-Nunn Transportation.
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