The fierce competition to add qualified and experienced truck drivers has wide-reaching employers offering signing bonuses. In some ways, the incentive makes CDL-holders feel incredibly valuable, given this is a standard practice found in star professional athlete contracts.
It’s important to understand that freight-hauling and logistics outfits are not necessarily throwing extra money at workers solely based on talent. Instead, they are making a calculated decision to bring truckers into the fold to do a job and ensure they possess the workforce to stay in business. In other words, don’t get swept up in feeling like you are special when offered a significant sign-on bonus. The money is being employed as a type of competitive leverage to secure your presence. In other words, it’s strictly business.
That being said, recent reports of common $5,000 bonuses and certain organizations bandying about figures as high as $20,000 have raised more than a few eyes. However, truckers would be well-served to conduct some due diligence before accepting an offer. These are things worth considering.
1: Can You Get A Higher Sign-On Bonus?
Online trucking jobs platforms typically publish opportunities with signing bonuses. The $5,000 figure appears to rank as an industry-standard practice. That may be a terrific offer for someone who recently earned their CDL. But experienced CDL professionals are seeing much higher offers. Consider your experience, special certifications, and check the landscape before taking a position.
2: Don’t Hesitate To Negotiate A Better Deal
In some ways, freight carriers and fleet outfits are like car dealerships. Some offer a standard package at a set rate. There’s almost no wiggle room. By contrast, other organizations are willing to up the ante for a truck driver who brings a wealth of experience to the table. Don’t be shy about filling out multiple applications, taking several interviews, and being polite about your financial expectations. The only thing a decision-maker can really do is say yes or no.
3: Consider the Sign-On Bonus Conditions
Most companies put a great deal of thought into what a sign-on bonus can accomplish. The first goal is to attract qualified and reliable truckers to keep their ranks full and business profitable. The second involves maintaining that workforce. That’s largely why bonuses are portioned out incrementally.
New hires usually receive an upfront amount once they are cleared to haul loads. After starting work, the remainder of the funds trickles out over one year to 18 months in many cases. It’s important to ask yourself whether being locked into a job for that long makes sense. Sometimes drivers can earn more working independently by picking up high-paying loads.
Sign-on bonuses remain an excellent way for hard-working truckers to put additional money in their pocket. Remember to calculate wages versus bonuses and think through the value of health, dental, and retirement benefits as well. Do it with a smile because these are good financial times for the women and men who deliver America’s goods and materials.
Sources: freightwaves.com, buisnessinsider.com
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