Clark: Mileage or home time? Understanding driver retention trade-offs in today’s trucking

For carriers, recruiters, and trucking executives, few topics matter more than driver pay and retention. While compensation structures vary widely across fleets, the divide between over-the-road (OTR) and regional/local operations continues to shape both earnings potential and turnover trends.

Understanding how these models differ and how each affects driver longevity is essential for building a stable workforce in today’s competitive freight environment.

Comparing OTR vs. regional pay structures for trucking fleets

At a structural level, OTR and regional/local fleets operate under fundamentally different cost and revenue dynamics. That reality drives how drivers are paid.

OTR driver pay: Mileage, incentives, and earnings potential

OTR drivers typically run multistate or coast-to-coast lanes, remaining out for one to several weeks at a time. Compensation is most commonly mileage-based, often supplemented with performance pay.

Typical components include:

• Cents per mile (CPM)
• Detention pay
• Layover pay
• Stop pay
• Safety or fuel-efficiency bonuses
• Sign-on incentives

Because OTR drivers accumulate higher weekly miles, annual earnings potential can exceed regional or local roles, especially for experienced drivers running strong freight lanes. However, income volatility can occur when freight slows, detention increases, or networks are imbalanced.

Regional and local pay models for predictable driver compensation

Regional and local operations typically prioritize home time and predictable scheduling.

Compensation more often includes:

• Hourly pay (with overtime in some operations)
• Daily minimum guarantees
• Per-stop pay
• Shift differentials
• Route-based compensation

Local drivers frequently perform more touch freight, urban deliveries, and multistop routes. While total annual earnings may trend slightly lower than high-mileage OTR roles, the consistency of pay and daily home time often carries value for drivers.

How pay and work-life balance drive driver retention

Compensation is always the first thing that attracts CDL drivers; however, fleets that believe high pay alone will keep drivers over time will be disappointed with the outcome.

Over-the-road driver retention issues and fleet solutions

Data across the industry consistently shows higher turnover in long-haul segments compared to shorter-haul operations. Contributing factors include longer time away from family, irregular sleep patterns, social isolation, and, in today’s volatile economy, schedule unpredictability.

That’s why OTR carriers should focus on retention strategies that include guaranteed home time programs, flexible routing options, improved driver support systems, and investments in newer equipment that ensure cab comfort for those long trips.

The fleets seeing improved retention are those recognizing that lifestyle focus is just as critical as CPM increases.

Local and regional fleet retention risks and strategies

Regional and local fleets often benefit from stronger retention, primarily due to predictable schedules and home time. However, these operations face their own pressure points that include traffic congestion and urban stress, higher physical demands (freight touch), limited long-term earnings growth, and seasonal freight swings. Drivers may leave local roles if they feel compensation no longer reflects workload intensity.

Retention in this segment tends to improve when fleets offer competitive hourly rates with overtime, provide clear advancement tracks, maintain consistent dispatch practices, and just as in OTR, invest in modern equipment, safety technology, and cab comfort.

CDL workforce trends: Younger driver priorities and preferences

Research has shown that newer entrants to the CDL workforce often prioritize lifestyle differently than previous generations.

Younger drivers frequently put the emphasis on home time, work/life balance, and company culture. Compensation and predictability still matter, but they’re definitely not enough on their own to keep this younger workforce content and in place.

Fleet cost impact: Turnover, recruitment, and retention ROI

From a cost standpoint, turnover remains one of the most expensive line items in fleet operations. Recruiting, onboarding, training, and lost productivity can quickly erode margin.

Higher OTR churn often forces carriers into aggressive sign-on bonuses and continuous recruitment spending. In contrast, regional and local fleets may invest more upfront in hourly wage competitiveness but recover those costs through lower turnover.

The fleets outperforming peers in retention, however, are not necessarily those paying the most per mile or per hour. They are the ones aligning compensation with realistic schedules, minimizing unpaid time, and building driver-centered operations.

As the driver market continues to evolve, compensation will remain a powerful recruitment lever, but retention will increasingly hinge on whether fleets balance pay with predictability, respect, and quality of life.