Attract and Retain Delivery Drivers by Offering Health Insurance
One of the most challenging aspects of being a FedEx contractor is recruiting, hiring, and retaining a reliable team of delivery drivers. Your drivers are the heart and soul of your business, ensuring packages are delivered on time and to the correct address, ultimately keeping your customers happy and your business running smoothly.
To set themselves apart, many route business owners offer competitive benefits packages to attract drivers and keep them on the team long term. Along with things like paid time off, year-end bonuses, and the use of a company vehicle, one of the biggest draws for new and existing drivers is health insurance.
Especially nowadays, when living in a pandemic era has people even more concerned than usual about their well-being, providing health care benefits such as medical, vision, and dental insurance is a smart investment if you own a FedEx route business.
Are contractors required to provide health insurance?
In most cases, no. Contractors are only required to provide health insurance if they employ 50 or more employees, but most delivery operations fall well below that number. However, just like any other business, not providing health insurance means you run the risk of missing out on hiring the best people for the job.
I’ve thought about offering health insurance, but it’s too expensive.
True, health insurance isn’t always cheap, but consider the potential long-term benefits to your business. FedEx route owners who fail to offer attractive benefits typically have very high turnover rates, since they have trouble retaining good driving talent if the incentives aren’t there. And, when you’re continually losing drivers, you have to spend more money (and precious time) recruiting and training new drivers. Then again, if you offer good benefits and build a strong team from the get go, you can keep your focus on growing and scaling your business.
Over half of all workers say health coverage keeps them at their job.
According to a recent survey by America’s Health Insurance Plans (AHIP), 56% percent of workers said that health coverage is a key factor in their choice to stay with their current job—regardless of whether or not they’re happy in their position. What’s more, 58% of workers say they would rather have coverage that is comprehensive than coverage that is affordable.
Even if you researched health insurance coverage in the past and decided against it, you owe it to your drivers and your business to take another look. A quick internet search will help you compare different health insurance providers and the benefits they provide, and from there you can reach out to specific providers to see what will work best for your FedEx route business.
Ready to become a FedEx contractor? Contact KR Capital today.
If you have been thinking about purchasing FedEx routes and are ready to take the first steps toward starting your own delivery business, contact the experts at KR Capital. Our experienced team of brokers can help you find FedEx routes for sale and guide you through the FedEx approval process so you can start building your team and making money.
Contact us at (503) 664-0753 or complete our online form.