CLDA Spring Magazine - FINAL - Page 13

Managing an independent contractor workforce is not easy , especially in final-mile logistics where we ’ ve been facing a capacity crisis with no sign of relief . The demand for quality drivers far outweighs the supply . Competition for recruiting and retaining ICs is fierce right now . Not to mention engaging with ICs comes with many legal landmines to avoid . Every company like yours is looking for a competitive edge to stand out from the crowd of businesses trying to contract with their next IC .

The good news is , there is hope for delivery companies that are willing to take a hard look at their internal culture and how they treat their employees and ICs alike . ICs are entrepreneurial-minded , skilled workers . Their flexibility and hustle are essential for every delivery company right now . They are not dispensable , and they shouldn ’ t be treated as such .
In this article , we will discuss :
• Why the one critical advantage to have in the market right now is a strong company culture that is attractive to drivers .
• Why grassroots recruiting methods may be more productive and less expensive than traditional advertising methods .
• How to retain the best drivers by offering access to perks and benefits that make life as an IC a little easier .
Delivery and last-mile logistics companies are overwhelmed due to extreme demand and labor shortages , not unlike every other service industry right now . Everyone , from the company owner to the new driver , feels the stress of this .
Creating and implementing a strong company culture in this industry is simple :
• Pay well
• Pay on time
• Establish a top-down culture mentality – your COO models the behavior you expect from a dispatcher , driver , and everyone else
• Practice compassion and empathy
• Promote from within and be transparent about the career path within your organization
• Offer incentives for referring employees or ICs , or for generating new client leads
• Remember that we are ALL in customer service . Your W2 staff should treat ICs with great customer service , and vice versa .
Managers should walk the docks or around the office daily . They should know people ’ s names , about their families , and what they are passionate about outside of work . Simply making the effort to get to know the people working with your company goes a long way .
The happier your employee or IC is , the more likely they ’ ll spread the word about your company when you ’ re looking for more capacity and shippers . And let ’ s face it , we ’ re all looking for more capacity right now .
Just because these principles are simple , doesn ’ t always mean it ’ s easy . Luckily , there are third-party administration services available to help your administration staff with automating processes such as contractor settlements and onboarding , leaving you with more time for relationship-building . spring 2022 customized logistics & delivery Magazine 13