In Feb. 2016, David Broyles was settling into a new role as Averitt Express' director of driver services when he attended an Omnitracs user conference in Nashville. He was intrigued by a service he discussed with an exhibitor, Atlantic HR Solutions, for managing per diem driver pay.
When Broyles mentioned the benefits of per diem pay to Averitt’s chief financial officer, the response was “we’re not getting into that mess. That will not help anybody,” he said.
Shortly after this exchange, Averitt got a new CFO. Boyles again discussed per diem pay and set up a meeting between Atlantic HR and Averitt’s executive team. After evaluating the data with accountants and lawyers, the new CFO was onboard.
Cookeville, Tenn.-based Averitt Express (CCJ Top 250, No. 28) has been paying drivers a daily per diem rate since January 1, 2017.
“It made such a difference in pay,” Broyles said. “Luckily we did it when we did.”
The trucking industry was going through a downturn in 2017. Averitt was unable to do a pay increase for drivers, but made it possible for them to net more money. Broyles credits Averitt's per diem pay for a four percent reduction in driver turnover in 2017. Today, virtually all if its drivers are in the program..
