The Business of Independent Service Provider Contracting

The Rising Cost of Recruiting Delivery Drivers

Posted by Jeff Walczak on 8/12/24 3:43 PM

Why You Should Start Recruiting Drivers Now for Peak

As peak season approaches, the competition for qualified drivers intensifies, and so do the costs associated with recruiting them. Recent data from Indeed highlights a trend that FedEx contractors cannot afford to ignore: the cost of hiring drivers is set to increase steadily from July through December. With this in mind, it’s crucial to start your recruitment efforts now to avoid higher costs later and secure top talent before your competitors do. 

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Topics: Driver Recruiting, FedEx, FedEx Ground, linehaul, fedex ground contractors, fxg, fdx, fec, linehaul contractors

FedEx Reinstates Policy: Pre-assignment Drug Screening & Random Tests Under 10,000 lbs Gross Vehicle Weight

Posted by Jeff Walczak on 5/3/24 12:20 PM

As of May 1, 2024, FedEx has reinstated pre-assignment controlled substance screenings for vehicles weighing less than 10,001 lbs., marking a significant policy shift after the COVID-related waiver period. This update now requires all service provider driver candidates submitted for operation of vehicles to undergo drug screenings.

As most of you reading this know, this will end up having a significant impact on your recruiting efforts and possibly affect your ability to retain some of your current drivers!

 Here’s what you need to know and how you can prepare for these changes:

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Topics: Driver Recruiting, FedEx, Network 2.0, fedex legal issues, fedex ground legal advice, driver management, transportation business

Ten Predictions For FedEx Contracting under Network 2.0

Posted by Jeff Walczak on 4/8/24 9:58 AM

Here we are, finally  on the eve of what will promise to be the really big visible push into Network 2.0 for CSPs.

Many things, mostly unseen, have been underway for years now. Some things, like the transition to the current ISP operating agreement, from the old legacy contract, have been going on for 8 or more years. By the way, make no mistake, it was this transition to the ISP agreement, which forced the relinquishment of proprietary interest in contractor work areas, that paved the way for Network 2.0 to become a reality.

So it could be said that the transition to Network 2.0 has really been in the works for more than 10 years now.

Let’s take a shot at predicting some of what promises to be many significant changes that Network 2.0 will bestow on CSPs as they adapt and survive into the new era:

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Topics: Business Outlook, Driver Recruiting, ISP Negotiation, Business, Network 2.0, Margins, low cost model, time definite, transportation business

Effortless Business, Maximum Results: Envisioning a Better 2024 for Contractors

Posted by Jeff Walczak on 11/17/23 1:17 PM

Running a FedEx Ground contracting business has never been more challenging. As we navigate through the implementation of Network 2.0, contend with record inflation, and face labor market challenges, many CSPs find themselves pulled in various directions. The landscape is shifting, and margins are tighter than ever, making it essential to find a way to not just survive but thrive.

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Topics: Driver Recruiting, Timekeeping, FedEx, Payroll, FedEx Ground, Business, DRO, vedr

Recruiting vs Hiring: What Are The Differences?

Posted by Ben Weil on 11/4/21 10:15 AM

There are a lot of blog posts with unrealistic driver recruiting promises. This isn’t one of them. This post is the truth about recruiting FedEx Ground drivers.

Why is recruiting drivers difficult? Mainly because recruiting is convincing good, qualified people to leave their current jobs. Plus, employers mistakenly equate recruiting with hiring. And a lack of continuously recruiting is the source of most CSP's difficulties.

There are five major differences between recruiting and hiring.

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Topics: Driver Recruiting, Business Results, FedEx Ground, Business, Metrics, contractor, Profit

3 Tips to Relieve Stress & Help Stay in Control This Peak

Posted by Jeff Walczak on 9/22/21 5:23 PM

It happens every year.

As the package volume builds, so do CSP / TSP stress levels, as well as the risk of an operation getting out of hand.

We surveyed a large number of our "veteran" clients to find out which tasks cause the most stress. Then, followed that up by asking how they alleviate the pressure and stress.

The results were interesting.

The good news is that the actions needed to relieve the stressors are easily accomplished and readily available.

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Topics: Business Tools, Business Planning, Driver Recruiting

Five Recruiting Changes to Make Before Peak

Posted by Ben Weil on 8/30/20 7:42 AM

Let’s start today’s blog post with a multiple choice question.

What does EVERY FedEx Ground Contractor need?

a.) Qualified drivers.

b.) Available qualified drivers to replace current drivers in the future.

c.) Qualified drivers for Peak.

d.) All the above.

Answer: d.) All of the above.

If you’re covered up with spare qualified drivers, then you’re set. This business is your oyster.

If you’re not, then finding qualified drivers is by far the biggest moving component of your revenue generating machine. Here are five recruiting changes that must happen now to be successful.

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Topics: Driver Recruiting, Business Results, Management, FedEx Ground, Metrics, leadership

Brian Reeves on Recruiting

Posted by Ben Weil on 4/2/20 5:08 PM

Today's blog post is by our guest blogger, Brian Reeves, of Reeves Delivery Group.

By Brian Reeves, Reeves Delivery Group

MANAGERS WHO RUN ESSENTIAL BUSINESSES NEED TO BE RECRUITING HUGE NUMBERS OF NEW EMPLOYEES TODAY, JUST IN CASE THINGS GET 50 TIMES WORSE.

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Topics: Business Planning, Driver Recruiting, FedEx Ground, Business, leadership

FXG Contractor And ISP Business Killer: Driver Recuitment

Posted by Jeff Walczak on 10/13/14 4:25 PM

Much has been written and said about what is probably the biggest contributor to problems and even failure of a FXG contractor or ISP operation.

Failure to get a system in place that provides you with a constant flow of driver applicants is likely to lead to many troubles, and possibly complete business failure. 

It is kind of like the weather, everybody talks about it, but nobody does anything about it.

Well now we are. Doing something about Driver Recruitment that is.

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Topics: Driver Recruiting

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