The transportation and warehousing industry struggles with one of the highest turnover rates across all sectors at 46.1%, with long-haul trucking companies often experiencing turnover exceeding 90%. With average salaries of $48,000 and replacement costs of 45% of salary ($21,600 per departure), the financial drain is relentless. The American Trucking Associations estimates the industry needs 80,000+ additional drivers, creating a seller's market where every retention advantage matters.
Benefits play a uniquely important role in transportation because workers often spend extended periods away from home, making employer-provided insurance and financial security benefits their primary safety net. A truck driver on the road for three weeks at a time relies on their employer's medical coverage, disability insurance, and life coverage in ways that office workers rarely consider.
This makes benefits a fundamental part of the employment relationship, not an optional add-on. For warehousing and logistics operations, the benefits equation includes significant workers' compensation exposure. Material handling, forklift operations, and repetitive motion create injury risks that drive workers' comp premiums to 20-50% of payroll. A PEO partnership can reduce these costs substantially while providing the complete benefits that attract and retain workers in a hyper-competitive market.