Dupre Logistics has been trying something a little different than the trucking industry norm. They are paying their truck drivers by the hour instead of by the mile. This is an unheard-of practice in the truck driving world and many companies are paying close attention to see how it pans out for Dupre Logistics.

There are very few truck driving companies, especially in this economy, who pay their truck drivers by the hour, but Dupre Logistics has had some amazing benefits by doing just that. Dupre says that the alternative pay structure produces better schedules and safer drivers. It also attracts higher quality drivers that want to stay with the company, something that may give Dupre a leg up once the economy recovers. Dupre Logistics, which is based in Louisiana, has found that their new payment method is paying off in terms of retention, safety, and efficiency.

By paying drivers for all they do, including pre-trip inspections, wait time, and unloading, Dupre is telling their drivers that they’re appreciated and valued. This has altered the turnover rate for Dupre considerably. When they first started the hourly pay rate, their turnover rate was 45% - pretty standard in the trucking industry. After just three years of this new plan, Dupre’s turnover rate is down to an unprecedented 27%. With the average cost to recruit a new driver at about $3000, this new method is saving Dupre a substantial amount of money.

In addition to the savings found by reducing recruiting costs, Dupre Logistics has cut its risk management costs by 34% due to the fact that truckers take their time, are safer on the road and better rested than drivers who are paid for each mile. Drivers who are paid by the mile often hurry to complete a delivery so that they can start another one as soon as possible. Some might argue that drivers will take their time and milk the hourly system, but if the driver is going the speed limit, he is less likely to get into an accident which increases the costs for the trucking company and puts other drivers at risk.

Most drivers don’t want to spend more time than necessary away from their family. Most drivers want to take the time to be safe. And most drivers don’t want to hop from one company to another for a few extra cents per mile. Dupre Logistics has an interesting and unique idea and it’s making all the difference in their bottom line.

The Driver Solutions Network trucking companies, along with most in the trucking industry, pay their truck drivers per mile. What do you think about pay by the hour vs. per mile? As a truck driver, would you rather get paid the Dupre way? What are the benefits to the average truck driver?