We have one semi and will add a second this year. I have my commercial driver’s license, but my employee does not. He would if I paid for training. It costs from $3,600 to $6,500. Should I pay for it?
Profit Planners panelists include David Erickson, farmer, Altona, Ill.; Mark Evans, Purdue Extension educator, Putnam County, Ind.; Jim Luzar, Purdue Extension educator and landowner, Clay and Owen counties, Ind.; and Steve Myers, farm manager with Busey Ag Resources, LeRoy, Ill.
Erickson: If this employee and the need for an additional CDL driver are integral to your operation, it makes sense to pay for training. I would suggest a written agreement that spells out your investment and expected length of service to justify your investment. Perhaps a minimum three-year commitment from the employee or you would be entitled to partial reimbursement would be reasonable.
Evans: The employer typically pays for training. However, what if you pay and the employee leaves for another job? The cost of training should be paid back to you. It can be prorated and graduated over time.
If the employee has the means to pay, look at a pay increase incentive for completing training. Then, the employee would pay for training. The latter option may cost you more in the long run in cost-of-living and merit increases.
So, provide your employees with training. It is responsible, though, that you want to ensure your operation benefits from the investment of employee development training costs.
Luzar: Two thoughts here. First, there is risk involved with you becoming unable to haul grain. If you are sick or injured, who will sit in the semi? That is a concern with even one truck.
A progressive business provides the employee with training to make them more valuable. Your staff member will improve grain movement by becoming a driver, and the training will help them be a safer driver, mitigating your risk exposure.
Second, yes, this is a big investment in your employee. If you’re concerned about paying for training and the staff member taking off for a better job thanks to licensing, work out a cost-share arrangement whereby the employee is responsible for some share of training cost. If they cannot pay upfront for part of the training cost, cover all cost and have them pay a portion back as a payroll deduction. You know your employee and what may or may not work for them.
The only way to avoid spending this money is to hire someone else who already has their license or to pay for custom trucking. My gut feel is these two options are not as palatable as making the investment in your current employee. You invest money in machinery and farm inputs. Think of this as an investment in labor.
Myers: Employee training can be expensive, but necessary, and CDL pricing varies based on the endorsements being sought. I would suggest checking multiple sources for such training, and getting references or firsthand knowledge of what may be the best fit for your employee. Further, I believe it to be appropriate to obtain a firm commitment from the employee that once this license is secured, they will remain with you a minimum period to be able to recoup at least some of this expense, should you part ways.
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