Following the law of simple economics, limited supply increases demand. And once way to increase demand is to increase pay … which is exactly what Walmart is doing.
Walmart announced that, beginning in February, drivers will receive a one-cent-per-mile pay raise. This seemingly small amount adds up quickly, however. It increases the average rate to approximately 89 cents per mile, which equates to roughly $87,500 per year!
Walmart has also changed its onboarding process to get drivers on the road more quickly. It found that the process had been too slow, leading potential drivers to take other jobs.
This announcement is in line with previous moves that the retailer has made recently, including referral bonuses, in an attempt to lure (and keep) its fleet of drivers
Although many companies outsource their transportation to third-party carriers, Walmart has its own private fleet of approximately 65,000 trailers, one of the largest in the country. Last year, Walmart brought on more than 1,400 new drivers, partly due to its high percentile ranking in 1st year salaries for fleet drivers.
How has the driver shortage impacted your supply chain? Are you seeing increased transportation costs? Sound off in the comments section!