Walmart recently changed its pay structure to allow truck drivers to earn up to $110,000 within their first year. Making such a dramatic pay increase has made a big impact on increasing the number of job applicants.
The company has seen anywhere from eight to ten times the number of applicants due to this announcement, according to Walmart's senior vice president of transportation.
How an Increase in Pay Impacts Truck Driver Shortage
A lack of truck drivers has been a major problem for many years. The impact of the pandemic has also put even more strains on the industry, as finding ways to attract new drivers remains a top priority.
The industry is facing a shortage of 80,000 drivers, which is why providing an increase in pay is essential for overcoming this problem. Walmart hopes to resolve its truck driver shortage by providing a substantial pay increase to keep supply chain disruptions to a minimum.
Walmart Creates Fleet Development Program
Another big change announced by Walmart is the creation of a Fleet Development Program. This 12-week training program is designed to enable existing employees to become truck drivers. Each employee that completes the program will graduate with a commercial driver's license and Walmart is also paying the costs of commercial driver's license training, which can range anywhere from $3,000 to $7,000.
The goal of the program is to allow 400 to 800 associates to become drivers this year and there are already plans to expand this program across the nation. Only time will tell if providing a pay raise and creating a Fleet Development Program can pay off for the company while also playing a key role in resolving the truck driver shortage in the United States.
Visit Cargobot for the Latest Inland Freight News
Cargobot remains one of the top digital platforms connecting both shippers and carriers across the country. Our goal is to make it easy for shippers and carriers to work together while managing the challenges of the supply chain.
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Reach out to Cargobot to learn more about using our platform while also keeping up with the latest news in the shipping industry!
