What is a Labor Market Analysis?
Why Driver Turner is So Costly
One of the biggest questions new and experienced contractors face is this: How much should you pay to attract and keep quality drivers?
Contractors frequently experience 30–40% annual turnover, and the cost of that turnover goes beyond wages. New hires often deliver fewer packages and work less efficiently than seasoned team members, reducing both profit margins and operational consistency.
Key Insights: Pay More to Save More
In many markets, you can pay drivers $650–$700 per week. However, offering higher compensation (up to $900/week) often leads to:
Better driver performance
Lower turnover
Fewer missed deliveries
Increased route efficiency
High-performing drivers can complete more stops per day, reducing the need for additional routes—and every route you avoid running saves approximately $95,000 annually in operating costs.
Recruiting Delivery Drivers for Your Routes
Labor shortages continue to challenge logistics contractors—especially those operating FedEx Ground P&D and Linehaul routes. Driver recruitment and retention are two of the most critical success factors for any contractor in the last-mile delivery space.
To support contractor success, Route Consultant works with Bright Flag Recruiting, a top recruiting firm specializing in logistics and delivery operations.
What Is a Labor Market Analysis?
A Labor Market Analysis is a detailed, three-page report that gives you competitive intelligence on hiring in your specific territory. It helps you:
Avoid overpaying for talent
Compete more effectively with local employers
Build a stronger, more stable driver team
Many contractors mistakenly recruit from the nearest major city—resulting in longer commutes, higher wages, and more competition. The labor market analysis helps you find cost-effective local labor by examining nearby zip codes that may offer stronger value.
What’s Included In the Labor Market Analysis?
Compensation & Benefits Benchmarking:
Minimum wage data based on your state and locality
Warehouse and manufacturing wages (similar labor demands)
Amazon driver wages—your biggest direct competitor
Benefits offered by local employers (health, 401(k), vacation, etc.)
Market-Specific Insights
We provide you with unique characteristics of your territory, including:
Unemployment rates
Population and demographic trends
Labor pool dynamics in your service area
Get the Most Out of Your Operation
For a comprehensive understanding of FedEx Ground routes, consider enrolling in our FedEx Ground Routes 101 E-Course. This course provides foundational knowledge to help you decide if investing in logistics routes aligns with your goals.
If you’re ready to explore available routes for sale, visit our Routes for Sale page.
