Why Long-Haul Trucking Companies Are Turning to EOR Providers for Driver Retention
Long-haul trucking companies lose 90% to 95% of their drivers every year. That number hasn’t budged in a decade. Most carriers respond with higher pay and signing-on bonuses. But while those moves get truck drivers in the door, they do not keep them there. Employer of record (EOR) providers are companies that handle employment functions like payroll, benefits, onboarding, and compliance for carriers, and they can reduce turnover by fixing the employment experience behind retention.
A 2024 National Academies study of long-haul trucking found two-thirds of drivers plan to stay in the trucking industry, but only half plan to stay with their current carrier. Drivers are not leaving the trucking industry. But they are leaving one company for another. For long-haul trucking company owners, fleet managers, and carrier operators — especially small and mid-size fleets dealing with constant churn — that gap between industry loyalty and carrier loyalty is a direct financial and operational problem.
This article explains why long-haul drivers leave, why wage increases alone do not solve retention, how Employer of record (EOR) services improve payroll, benefits, onboarding, and legal compliance, and how Forsla supports carriers trying to stabilize their workforce and protect profitability.
Why Long-Haul Drivers Leave (and Why Pay Raises Alone Do Not Fix It)
ATA estimates a shortage of around 82,000 truck drivers by 2026, and industry data show that 35% of new drivers leave within their first 90 days. But the churn is concentrated in long-haul truckload, where time away from home, unpredictable schedules, and the physical toll of the job add up more quickly than in regional or LTL work.
The leading reasons drivers leave a given carrier are more operational than lifestyle. Pay level is rated below pay variability. A driver who sees his check change from week to week due to inconsistent mileage calculations, disputed detention pay, or back-office payroll errors quickly loses faith in the company.
Unpaid detention and dwell time cut into take-home pay, but aren’t reflected in the advertised salary. Drivers are leaving for companies with better health insurance, paid time off, and retirement options, not lousy or inconsistent benefits. And slow, disorganized onboarding that dumps a new driver in paperwork during their first two weeks is a sign that the carrier’s back office can’t do the basics.
A driver who waits for a payroll correction for two pay cycles is already on job boards. And you cannot fix that problem by increasing the per-mile rate. The solution is to fix the employment process.
How EOR Providers Tackle Employment Issues That Cause Turnover
Week after week, month after month, it’s a series of smaller employment failures that push drivers out. EOR providers address those failures by stepping into the employment functions where most small and mid-size carriers fall apart. In practice, this creates a three-way relationship between the carrier, the EOR, and the driver/employee, structured around the carrier’s business needs. The carrier still directs daily work and employee performance, while the EOR handles employment administration and compliance. Here is what they do:
Consistent, Error-Free Payroll Processing
Pay variability and payroll errors are two of the quickest ways to lose a driver. A late check in the mail, a mileage calculation that doesn’t match the driver’s own records, or a tax withholding error in a new state all eat away at trust before the driver has even finished their first month. EOR providers process payroll in all states where the carrier operates, every pay cycle, ensuring tax calculations and withholdings are done right the first time.
This way, drivers are paid properly and on time, in every jurisdiction. That consistency takes away one of the biggest daily frustrations reported by long-haul truck drivers. This alone can be a game-changer for a small carrier without a dedicated payroll team.
Benefits That Compete with Larger Carriers
Large carriers can negotiate group rates and offer health insurance, dental, vision, paid time off, and retirement plans. A fleet of 20 trucks doesn’t have that leverage. Without an EOR, the benefits package often doesn’t stack up for a small or mid-size carrier, therefore pushing drivers to larger fleets that can provide better coverage.
EOR providers pool drivers from all their clients, providing smaller carriers with access to health benefit packages they could never afford if they negotiated individually. That access to competitive benefits alters the retention calculus. If a driver can get health insurance, paid time off, and retirement contributions from a carrier with 25 trucks, he has less financial incentive to switch to a fleet with 500 trucks. The benefits gap narrows, and the smaller carrier keeps a driver it otherwise would have lost.
Faster, Cleaner Onboarding
35% of new drivers leave in the first 90 days. An onboarding process that is chaotic and takes days to complete misplaces paperwork and delays the driver’s first load, or when a benefits enrollment form is lost between the office and the carrier’s accounting system, a new hire feels like they chose the wrong company.
EOR providers like Forsla handle the entire onboarding process, including tax forms, benefits enrollment, compliance documentation, driver qualification files, employment verification, and related service support. The system is already installed, so the driver only has to do the paperwork once. And the EOR provider runs it through a platform built for that volume. Less friction in the first two weeks = fewer early exits. Some EOR providers charge extra for onboarding-related add-ons like visa sponsorship, so carriers should confirm what is included. When a driver’s first experience with your company is organized and professional, they start the job with confidence that the back office can hold up its end.
Proper Worker Classification and Legal Protection
Getting the classification wrong, for example, putting a driver on a 1099 form when the working relationship meets the legal test for W-2 employment, causes problems on both sides. Now, the driver gets no benefits, no workers’ comp, no unemployment insurance. And the carrier is facing back taxes, penalties, and possible litigation. When drivers find out they were misclassified, they leave and tell other drivers why.
An EOR maintains the correct classification from the first day of work, keeps the supporting documentation, and updates the records when regulations change. As the legal employer, the EOR assumes legal compliance for classification, payroll laws, and tax obligations to ensure compliance. A reliable EOR should own or directly control its legal entities rather than relying entirely on third parties. That also means carriers do not have to set up their own entity in every state or market where expansion requires formal employment infrastructure. That protects the driver’s eligibility for compensation and benefits. And it protects the carrier from an audit that could cost more than a full year of EOR fees.
The Retention Math: What Turnover Actually Costs a Carrier
Most estimates from the industry put the average cost to carriers of recruiting, hiring, onboarding and training a replacement driver at between $8,000 and $15,000 per hire. That’s 45 driver replacements per year at 90% turnover on a 50-truck fleet. The annual cost of churn for a fleet that size can exceed $500,000 before accounting for lost productivity, unseated trucks sitting idle, and the safety risk of running an operation with drivers with less than six months of experience behind the wheel.
That’s a quarterly hit to the carrier’s bottom line. An EOR fee that reduces turnover by even 15% to 20% pays for itself in avoided recruitment fees. Longer tenured drivers learn the routes, develop relationships with customers, are safer, and bring in more revenue per truck. Retention is a money problem. And the carriers that treat it as a financial problem and invest in the employment infrastructure that fixes it are the ones pulling ahead.
How Forsla Helps Long-Haul Carriers Keep Drivers Longer
Forsla provides EOR services specifically designed for trucking companies and owner-operators, including long-haul carriers struggling with turnover rates the rest of the industry has accepted as normal. The model covers both W-2 company drivers and 1099 independent contractors, and administrative processing is managed via a backend partnership with TCWGlobal.
Forsla manages payroll, multi-state tax filings, DOT compliance, benefits administration, occupational accident insurance, and driver onboarding in every state where a carrier operates. Pricing is transparent based on the number of employees with no hidden fees. It’s scaled based on fleet size, driver classification and regional coverage.
Forsla’s compliance team provides continuous support, including documentation audits and regular checks to keep employment records up to date, so dispatchers or fleet managers don’t have to chase paperwork between loads. If you’re a long-haul carrier tired of watching your drivers jump ship to competitors with better employment systems, Forsla gives smaller and mid-size fleets the back-office infrastructure that makes drivers want to stay. Request a quote today to get started.
Frequently Asked Questions
How do EOR providers handle health benefits for long-haul truck drivers?
EOR providers pool drivers across their entire client base, negotiating group rates for health insurance, dental, vision, and other coverage that a small carrier could not access on its own. The EOR manages enrollment, tracks eligibility, and handles claims administration. Drivers receive benefits that compete with those at larger carriers, which directly affects whether they stay or leave for a company that offers better coverage.
What should carriers look for when evaluating EOR pricing models?
Ask for a full breakdown of what the fee covers. Some providers charge a flat monthly rate per driver. Others take a percentage of gross pay. Watch for hidden fees around onboarding, offboarding, compliance documentation, or state tax registration. The right pricing model for a small or mid-size fleet is transparent, per-driver, and scales with your fleet size without penalizing you for running fewer trucks.
Can an EOR help carriers hire new drivers faster?
Yes. Because the EOR already holds registrations in multiple states, carriers can hire employees and onboard them within days rather than weeks. Tax forms, benefits enrollment, compliance documentation, and driver qualification files all process through the EOR's existing system. That speed matters when a driver is choosing between two offers and the carrier that onboards faster wins.
Can an EOR help carriers retain drivers who work across different countries?
Yes. EOR providers that support international employment can help manage remote drivers working across borders, including payroll, social security contributions, and compliance with local laws in other countries. The right technology platform also helps centralize employee data, payroll records, and compliance documentation across countries. For carriers with cross-border routes into Canada or Mexico, that means drivers get consistent pay and benefits regardless of which country they are working in. Removing that inconsistency eliminates one more reason a driver might look for a different job, and that kind of consistency supports long term success when managing drivers in different countries.