4. Guarantee wages in an easy-to-understand format and pay plan. z Lay out total hourly earnings including wages, gratuities, and bonuses z Show actual examples of earnings of existing chauffeurs (names and identifying de-tails removed) Stress variable pay (tips) and differential pay for late, early, and holiday work. z Highlight the ability to earn cash tips and extra pay/benefits for their flexibility Create sign-on, referral, and mentor bonuses. z Structure 33 percent paid upon completion of the first week with the balance over 120 days, for example z Create referral bonuses for existing staff to find drivers z Assign seasoned chauffeurs who can act as recruiter and mentor new drivers Agree to pay for NEW CDL training, fees, and license costs (get creative). z Start by hiring non-CDL drivers and invest in and reward them when they take tangible steps toward successful completion of their CDL Provide reimbursement for uniforms as a bonus for a number of jobs completed. z Cover the cost of shirts, shoes, suits, and uniforms after taking on an increased numbers of trips 5. 6. the cost of vehicles and gas have all shot up year over year— V the average national gas price is nearly a dollar higher at $3.155 on average than this time last year —a trend which is likely to continue until supply levels with demand (which ironically requires labor). Operators we have sur-veyed indicate commercial insurance increases anywhere between 9 and 22 percent. V See what your peers have to say about their own rate increases . Every operator should track their costs of goods 7. 8. 9. Create attainable monthly incentive and bonus programs. z Offer additional earnings in the form of cash bonuses for certain numbers of success-fully completed jobs or 5-star reviews z Provide a written escalation plan so newer goals are achievable 10. Continually celebrate and reward great service in an upbeat environment (make it a place they want to work). z There’s a nationwide trend of employees reconsidering their career since the pandemic, which means that it’s not just about salary but work environment and company culture z Create a stepped plan for incentives and bonuses and openly celebrate performance every month z A little bit goes a long way to build a positive company and reward flexibility categories, actively work to drive down operational ex-penses wherever possible, and become more creative to operate at a profit or they simply will not survive until the economy fully recovers. Further, many operators are utilizing regional IOs and raising prices on entire vehicle categories, adding manual reservation surcharges, and increasing off-hour trips to compensate for overall operat-ing costs. Hopefully as the economy continues to recover, major industry stakeholders can come together and open-ly discuss pricing, payment terms, and operational strate-gies to increase profitability. The reopening of US and global businesses has been a great boon to operators who are seeing a massive spike in reservations, but the challenges most faced this time last year—too many employees and too few customers—is now reversed and requires different thinking to tackle. One thing is for sure: It’s not the same economy we left behind in March 2020, so you’ll want to be prepared to embrace these emerging trends. [CD] Time to Raise Rates? In a word: YES! Obviously attracting and retaining chauffeurs and CDL drivers will be more challenging and costly compared to 2019 and prior, and many of the above suggestions will require increases in base pay and variable compensation, so a credible case can be made for raising your rates. Restaurants and other establishments have been bumping up their prices to cover higher salaries, but also due to the escalating cost of consumer goods. In our industry, KEN LUCCI IS A CONSULTANT TO THE CHAUFFEURED TRANSPORTATION AND HOSPI TALITY INDUSTRIES. HE CAN BE REACHED AT KLUCCI@DRIVINGYOURINCOME.COM. chauffeurdriven.com 08.2021 27
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