Recruiting and retaining CDL drivers
We understand the importance in recruiting and retaining CDL drivers for organizations like Penske and that retaining quality drivers can dramatically improve overall safety statistics.
Penske offers a generous benefits program to your employees, including contributions toward employee retirement plans. The graph below illustrates that Penske’s maximum employer contribution to retirement plans is solid amongst competitors in the trucking/logistics industry (information from most recent 5500 filings).
We also looked at maximum advertised retention bonuses for Penske and a sampling of other trucking/logistics industry companies. We observed that Penske had a few retention bonuses of $17,000. This was significantly higher than most other industry competitors’ retention bonuses.
Increased visibility of Penske’s generous retention program could help to further increase its impact in retaining CDL drivers. Most retention bonuses are infrequently communicated and because of that are often not front and center in the employee’s mind.
Retention plan recordkeeping solution
Principal® has the ability to recordkeep Penske’s retention bonus plan, integrating it with Penske’s retirement program, so that it is significantly more visible and impactful to those employee populations you are targeting to retain, like CDL drivers. We currently administer employee retention plans for several companies in the trucking/logistics industry.
Advantages include, but are not limited to:
- Putting the retention bonus front and center as part of the participant experience every time an employee logs into the Principal site to view their retirement plan. Instead of just being told once that an employee has this bonus, it is shown to them again and again as part of their benefits.
- Ease of administration for Penske – integrated plan sponsor experience for all plans serviced by Principal.
- Penske could choose to pre-fund the benefit, and depending on how you structure it, Penske could potentially earn some return on assets to offset the cost, or allow the employees to gain the return on assets, Penske’s choice.
This is just one example of the proactive, consultative approach we have with our clients. Principal’s consulting process is not to simply bring ideas like this to you, but to then work with you to fully understand all of the impacts of such ideas. We would be happy to discuss this example further with you or provide additional examples of consulting ideas we have.
