It’s no secret that employee retention is at the forefront of many businesses. Hirschbach doesn’t just talk the talk of employee appreciation, but it walks the walk. The company is committing $30 million for its new retention program to be rolled out over the next two years. In addition, Hirschbach is launching a gain-sharing program company wide.
“The organization grew by around 15 percent last year, and we’re planning on growing again this year,” said Brad Pinchuk, CEO and Owner. “And we need great people…we’re going to roll out a retention program.”
Hirschbach’s new retention plan gives $10,000 to each of Hirschbach’s almost 3,000 team members, totaling $30 million.
“The way this is going to work is that everyone, whether you are driving a truck, whether you are working in one of our shops, whether you are working in one of our offices, every team member at Hirschbach is going to receive $10,000 and it’s going to be paid out in two $5,000 installments,” Pinchuk explained.
The first pay out will be on April 4, 2023 and the second one is going to be on April 4, 2024.
“It’s a two-year retention program that’s well deserved to all of you,” Pinchuk said to his employees.
“You do a fantastic job, and we want you to continue stay here at Hirschbach and do the wonderful job that you do, and also to bring over some of your friends to help us continue to meet the needs of our customers and the high demand that we’ve got out there.”
New office and shop employees will receive $5,000 on their first-year anniversary, with the second $5,000 installment following on their second-year anniversary.
New drivers coming into the company will receive $100 per week for their first 50 weeks and $5,000 on their second-year anniversary.
Hirschbach is anticipating an additional $10 million commitment for the company All In To Win Gain Share Program.
“At Hirschbach we’re All in to Win,” said Brad Pinchuk, CEO and Owner.
“Winning means that we’re excelling in every aspect of our business. To make that happen, everyone needs to put forth their best effort and work as a team. The All In To Win incentive plan is our way of sharing our success with every member in the organization.”
The All In To Win Program is a profit-sharing annual program that current and incoming Hirschbach employees and independent contractor/lease purchase operators are eligible for.
An average trucking company retains 5% pre-tax margin, Pinchuk explained, while the best performers retain 15%-20%. Hirschbach’s 2022 goal is to hit an 11% pre-tax margin.
If the company hits its goal, then everyone will receive an estimated $3,500. The bonus increases and decreases by $500 for every 1% above or below the 11% goal. For instance, if the company hits 15%, then everyone receives $5,000. On the flip side, if the company hits 5%, then everyone receives $500.
To qualify, employees need to watch an explanatory video and then fill out responses to two questions in a survey. To receive the bonus, team members must be actively employed at Hirschbach at the time of payments (75% of the estimated amount will be paid in December, with the remaining 25% paid out the following February once the final results of the year are calculated.
Any new team member receives a prorated payout that aligns with their state date, such as a June 1 start day receiving 50%.
“For us to achieve the 11% goal is going to take everyone doing their part,” said Dan Wallace, President. “Everyone has a role and we will all celebrate the success together.”