How Much is Your Truck Driver Hiring Bonus?

How do sign-on bonuses work for truck drivers?

Many carriers are now offering sign-on bonuses to attract new drivers. Hiring bonuses vary from company to company. The average is about $2,300, but some offer as much as $20,000 per driver. The payouts vary as well. Some carriers pay within 90 days of employment while others pay after six months or more.

Attracting quality drivers with a sign-on bonus won’t win you any good will if the conditions to qualify are impossible or there are obscure or confusing rules regarding the payout. It’s important to be transparent with drivers so they know exactly what they need to do to earn the bonus and understand when and how they will be paid.

Should you offer a sign-on bonus?

Several carriers are currently offering sign-on bonuses to attract new talent, so if you want to be competitive in attracting new drivers, you may find that offering a hefty bonus is a good way to stay ahead of your competition.

Another option is to offer generous transition pay. Transition pay means paying drivers a higher per-mile rate in their first few months. This is when the number of miles driven is typically lower as the new drivers get used to the company's operations.

It is important to remember that attracting and retaining drivers are two different things. You may be able to recruit good drivers with a generous sign-on bonus or transition pay, but if you don’t take steps to keep your drivers happy, you’ll end up with a high turnover rate after your drivers get paid their hiring bonuses.