Making the Shift Here are some of his does and don ’ ts :
Because Brady ’ s company had been an employee model previously , he acknowledges that he may have had an easier time going back to it . “ For us , it was very easy ,” he says . “ We offered jobs to the better drivers , hired a couple more as employees , and stopped contracting with the worst drivers . Getting all the employee paperwork together was probably the hardest part . Developing the pay structure , the vehicle reimbursement plan , the driver-specific bits of the employee handbook and getting it all approved by our legal team took the most time and effort . It was less trouble than when I switched to ICs in the 90s because we already had the employee infrastructure for our office staff . All we had to do was figure out what was missing that was driver-specific . It only took a couple of weeks . Getting the lawyers ’ approval on the paperwork took the most time .” He predicts most companies can make the switch in a month or so , depending on how quickly they can get the needed advice from their attorneys .
Making it Work
Brady suggests the transition to an employee model could inspire company management to overdo control . “ Be smart . Don ’ t be a jerk . Sure , with employees , you can require everyone to have rigid and demanding schedules , but you don ’ t have to ,” he advises . “ If your favorite IC drivers enjoyed their flexible schedules before the switch , you can allow it for them . The only caveat is that you have to watch out for overtime . Yes , using employees gives you more control and power , but my best advice is ‘ don ’ t let it go to your head .’”
• Do make a good plan that rewards drivers for behaviors you want and punishes behaviors you do not want .
• Do create a vehicle reimbursement plan that is legal . DON ’ T make mileage reimbursement a percentage of the drivers ’ pay .
• Do have a reasonable employment attorney review your plans .
• Do make an effort to explain everything to your drivers as best as you can .
• Don ’ t be a jerk about it .
He urges carriers to look at the shift to employee drivers as another challenge they can meet . “ The biggest mistake that companies make when undertaking this change is thinking that it ’ s the end of the world ,” he says . “ Our industry is constantly changing . We either adapt or go out of business . This is simply one more change .”
He sums up his advice this way : “ Keep your cool . Do your research now . Have a plan . Figure out a good compensation plan , figure out a good vehicle reimbursement plan , and run them by a good employment attorney . If you know a storm is coming , you board up your windows before it hits . This storm is coming for many in the business . So , do your research now , make a plan , and execute it . No one is going to switch until everybody has to . You want to be the one that does it best .” CLDA
42 customized logistics & delivery Magazine I fall 2023