Do you do your own legal work, your own accounting or conduct surgery on yourself or your loved ones? Then why attempt to manage one of your company's major expenses - Transportation.
Outsourcing the hiring, retention and training of your transportation department has proven to increase productivity and reduce overall costs.
Outsourcing this labor intensive area of your operation will allow you to focus on your core competency while allowing transportation professionals to suggest and create programs, implement plans and successfully run the entire operation as it relates to transportation and logistics.
This will increase your ability to hire quality drivers and management, decrease unwanted turnover, and increase productivity and efficiency while reducing costs traditionally associated with transportation. Outsourcing the services of transportation professionals will allow you to create an arm of your company that is as professional as the products and services that you have built your reputation on.
There are many questions that remain unanswered about driver leasing companies, also referred to as driver staffing agencies, PEO's (Professional employment organizations), driver employment agencies, transportation management companies, etc. I will attempt to answer some of the major question that may be on peoples minds if you are considering outsourcing your transportation department or even if you are looking to work for a driver leasing company. Ok, here goes...
1) What is "Driver Leasing"?
Driver leasing is the practice of arranging to have your vehicles driven by professional truck drivers not employed by you, but acting as if they were. It is a specialized form of Contract Labor.
2) How does Payroll Administration Work?
Your company will enter into a joint relationship with the driver leasing company that is designed to allow you to grow and run your business, while the driver leasing company manages employment related issues. All employees are on the payroll of the driver leasing company and they are responsible for all elements of payroll, benefits, insurance, and reporting. You get a weekly invoice from the driver leasing company, and they should practically handle everything else!
3) Do driver leasing companies dispatch at night?
Some driver leasing or transportation management companies operate a 24-Hour dispatch center to support the transportation and logistics supervisors. You want to look for a company that provides this type of service in case you have drivers that call out in the middle of the night, or if you run late shifts.
4) What if our company already has an established fleet of drivers?
Some driver leasing companies will take over your entire transportation department if that is what you are looking for. For clients that decide they would prefer to concentrate on their primary businesses, some driver leasing companies would be happy to help you outsource your transportation department, while still having the ability to maintain the transportation department at "arms length." It is best if a driver leasing company creates a customized program for you, based on a careful analysis of your needs and wants. You do not want to do business with a company that does not want to hear what your needs are.
5) How big does my company have to be to make it worth while?
Even if you operate only one truck, you can benefit from Driver Leasing.
6) Our firm hires its own drivers. Why should we change?
Some driver leasing companies have Human Resource departments that are expert in hiring professional drivers, conducting background checks, running Motor Vehicle Reports, conducting pre-employment physicals and drug and alcohol tests and administering ongoing customized programs designed to drive corporate profitability. You need to work with a company that can do all of this for you.
7) How can driver leasing save me money?
There are many ways of improving the cost effectiveness of operating a business. One of the least understood, is the value of having outside experts provide services that neither you nor your personnel are experienced in. Your time may be better spent managing those areas where you specialize.
8) Will leasing drivers solve our paperwork problems?
Some driver leasing companies will assist in setting up and creating new and efficient systems as well as customize and modify your current systems to perform exactly how you need to eliminate the overwhelming feeling that excessive paperwork can create. Some companies will not provide this service.
9) What happens when a driver files an unemployment or workers' compensation claim?
Unemployment and Workers Compensation claims become the driver leasing company's responsibility since the employees are employed by them.
The above information should help you make a decision on whether or not to use an outside company to provide truck drivers for you. If you would like more information on how driver leasing can benefit your company, please click here.
Noah Ostroff
www.slsdrivers.com
See Also : motorcycle av Gps Watch
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