Changing Careers in the Quiet Season — A Costly Mistake

Many Don’t Understand the “Quiet Season” and How to Prepare for it

The trucking industry, characterized by its cyclical nature, faces an annual phase known as the “Quiet Season”. This typically occurs post-holiday, between January and March, resulting in reduced demand for freight and job opportunities. However, there are smart, strategic approaches drivers can take advantage of to prepare for the season and to come out ahead. 

This is the worst time to quit a job!

Whether you’re a salaried employee or paid by the mile, paychecks have the potential to decrease by 10-20% during this time period. First and foremost, don’t quit your job looking for more hours. This is not a peak season employers are hiring drivers! 

Financial planning and creating a contingency plan is the key to combating the loss of income in every Quiet Season. The best place to begin is by setting up your Direct Deposit account to receive 80-90% of your paycheck into checking, and the remaining 10-20% into savings. Ideally, it should supplement your reduced earnings in the season to enable you to cover your living expenses as if you were earning a full-time income.

Another mindset to consider is not relying on any weekly, monthly, or annual bonuses to support your monthly cost of living expenses. The majority of bonuses are performance-based, and there is no guarantee that you will receive them or in an amount that is pre-determined. Bonuses as well provide an additional opportunity to save money.

The idea is to work with a cost of living or your monthly budget that doesn’t include the extra 10-20%.

Quiet Season Advantages and Considerations 

It is a best-practice to never leave your current employer during the Quiet Season unless a formal offer and contract has been presented to you by another company, and that you have carefully weighed the salary and benefits that can fully support you. 

If you experience that 10 to 20% loss in income during this time, you will still receive 80 to 90% of your income from your current employer if you remain with them. Keeping that income rather than quitting your job is better than receiving no income at all, wouldn’t you agree?  

Retaining employer benefits during these months is also extremely important. Average independent, self-pay monthly premiums for healthcare insurance can range from $484 to $1,230. Considering the benefits and contributions an employer provides beyond your salary or weekly pay is paramount when weighing career changes. On average, insurance benefits employers provide equate to an additional 10 CPM.

With the potential cost of the self-pay monthly insurance premiums, can you forgo having benefits, waiting another 60-90 days to be eligible for them in a new position? Quitting your job in the beginning of the Quiet Season (January) can be an even a more costly mistake. If you are unemployed for three months, and become newly employed the following April for example, and the employer has a 90-day waiting period to be eligible for health insurance, you are looking at paying a potential range of $2,904 to $7,380 to cover your health insurance. 

Are you also a part of a company-matched 401(k) plan? How much have you earned alone just from your employer’s contributions? Have you considered what that compounded investment will look like in five years if you stay with the company? How about at a retirement age of 65? Are you curious to see what you may earn when a company provides a matched plan? The internet offers several available links to calculate the rate of return on 401 (k) investments.

Unfortunately, the Quiet Season can impose company layoffs, and all of the above can seem worthless to pursue. However, an old, long-standing rule of thumb is to always have six months to a year of savings always put away in the event of the loss of employment. If following the aforementioned guidelines, and you indeed saved 20% of your salary and never spent it for five years, you would have saved a full year’s income; in two and one-half years, you would have saved enough for six months.

Professional Development Opportunities

Take advantage of the slow time and enjoy your extra home time, friends, family, projects you’ve wanted to do, or places you’ve wanted to go! This time also provides an opportunity to engage in professional development. Invest in training programs, such as mountain driving, obtain endorsements or specialized certifications, enhance your skills in the operation and maintenance of your truck, or improve your technological skills.