CLDA Spring Magazine - FINAL - Page 15

Luckily , there are some enticing third-party benefits programs on the market designed to provide ICs high quality benefits at affordable rates .
Here are a few things to keep in mind when helping ICs find quality benefits :
• Contracting companies cannot offer benefits , but third-party administrators can : From settlement advances and affordable health benefits to everyday retail discounts , the program or membership should offer ICs the benefits they need that contracting companies cannot offer directly .
• Contracting companies need to retain current ICs : The ultra-competitive market combined with the convenience of tech offering opportunities at their fingertips , ICs now have more options for generating income . Contracting companies can ’ t afford to lose ICs to the Ubers of the world who are already offering faster pay cycles .
• Contracting companies need to attract more ICs : Due to high demand for quality ICs , recruiting efforts must stand out by offering extra perks .
Recent audits have uncovered that companies utilizing a benefits program have seen as much as three times the retention rate of ICs , compared to the industry average . When reviewing benefits options , understanding what ICs are looking for helps tremendously in selecting the best options for your ICs . The goal is to find providers with partners that have produced a suite of benefits designed to keep ICs engaged long-term and help them thrive as independent business owners .
Some of the must-have perks and benefits for ICs are :
• Discounts on optional insurance from multiple providers ( including auto , medical , accident , life and more )
• Cash advances
• Hundreds of retail and entertainment discounts and cash back rewards
• A variety of auto savings , 1099 tax help , and business and legal services .
Contracting businesses with established benefits can remain at arm ’ s length from ICs to protect themselves legally , but have also realized :
• 52 % reduction in contractor turnover
• 3x higher contractor retention .
In today ’ s unprecedented market , IC retention is arguably the key for reducing churn within a contracting business .
And the key to IC retention lies less in the tangible elements , and more in relationships . Humans are wired for connection , and no matter how smart technology becomes , it can never replace the way we treat each other and the feeling of being appreciated . If delivery companies establish a culture that emphasizes positive relationships and professional growth , then the driver shortage may become less of a challenge over time . CLDA
Kirk Godby is a Strategic Accounts Executive at Openforce . The company provides technology-driven services that reduce the operating costs and compliance risk for companies using independent contractors ( ICs ). For more information go to oforce . com
spring 2022 customized logistics & delivery Magazine 15