Recruiting is the core component of every ISP’s business. We have been helping more than 100+ ISPs across the US. As recruiters, we face the same challenges, so we'll share some insights, hacks, and perspectives. In this blog, we will deep dive into the AVP Program with a notion to help you to recruit and retain better. The AVP - Alternative Vehicle Program is something that FedEx Ground introduced a couple of years ago. It happened in the middle of the pandemic when we were facing shortages of everything– be it drivers, or trucks.
AVP is a program that allows FedEx contractors to use their employee's vehicles to deliver packages. It adds flexibility and value to FedEx contractors. You hire employees who use their personal vehicles which could be sedans, pick-up trucks, or anything that is less than 10,000 pounds. The vehicles come to the terminal, get loaded and deliveries are done just the same way as it is done in the case of rental cars. The only difference is that you need 2 approvals: One is for the driver, second for the employee’s car.
The FedEx contractor has to get into a lease agreement with the AVP driver to use his vehicle. The employee’s vehicle has to have a prominent badging of FedEx ground the same way it is put on the rented trucks. An AVP driver has to be a W2 (a person hired by a company under a standard employment contract), a full-time or part-time employee.
How to get an AVP driver onboard?
The process of getting an AVP driver onboard is very similar to hiring a normal driver. He has to go through the background check, drug test, and all the other steps. But the vehicle needs to go through a set of measures before getting approved by FedEx.
- The vehicle needs to be less than 15 years old.
- It should have a curb weight of fewer than 10,000 pounds,
- The vehicle must have active personal insurance.
The drivers have to fill out a form, which requires a lot of manual work. So, completing this process can take up to 4-5 days.
The explosion of the Gig economy!
Over the last decade, we have seen an explosion in the gig economy. From food delivery, Uber, Amazon, Walmart, and all others have their own flex positions. Gig workers are basically those who act as 1099 contractors (who work independently rather than for an employer) in their minds and are below 30 years of age.
Today there is no dearth of job opportunities, but a gig economy worker is mostly someone who might be taking care of someone, he has to go pick up which might be scheduled at 3 p.m., but they have particular restrictions on their schedule. It forbids them to take up a full-day job.
Though, he might be available at certain flexible schedules.
What motivates a Gig economy worker?
Over the last few years, the majority of companies that use gig economy workers have motivated them by the potential of earning an outsized return on their time if they give in the effort, and hours. For example- if an Uber driver works smartly he has a chance of earning $27-30 / hour. Similarly, an amazon flex driver makes his deliveries faster, he has the opportunity to earn a lot more than normal.
So, this is the key motivator for anyone who is looking for a flexible delivery job. Contractors have to make sure that their interest- making the most amount of stops per hour and gig workers' interest in earning the most per hour is aligned. Just show him the path that if you are ready to invest in time, and learn technology then you can earn a lot more than normal
If you are successful to design an AVP program that incentivizes them to work as hard as possible, then Beans recruiting guarantees you will get amazing drivers.
Contractors need to consider certain situations to hire gig workers:
Accommodate gig workers' schedules, and be flexible with them.
Allow them a later dispatch says 11. A.m.
Allow them to come back by 2. P.m. or whatever their requirement is.
Understanding what they can do and what they can’t
Investing in the AVP Program
You don't have anything to lose, it’s not that you are dedicating a truck for them, nor do you have to allocate any other resources to them. Putting in some effort and designing the AVP program adds a lot of flexibility and comfortability as well.
Opting for an AVP Program lets you cut routes, you are able to run fewer trucks. You might have more AVP drivers running on smaller routes. But by buying fewer trucks you are able to save on certain costs, insurance, maintenance, and all other added costs.
How to pay - AVP Program
Contractors pay the AVP drivers based on different metrics. Some pay them for the hours worked, or by completed stops. We have also seen people being creative about paying, by the hours worked and then adding a mileage and per stop bonus. You must consider your contract, commercials, and finances to ascertain how you want to pay. Every route and CSA (Customer Service Area) is different- accordingly, you could draft multiple pay structures. Drivers need to understand and pick which suits them the best.
According to Shivam– Head, Beans Recruiting “Simplicity is the Key.” The fastest way to lose an employee is miscommunication. Having a jumbled compensation structure will result in problems and confusion. Communicating complex details to the drivers is very hard. Some things will be lost in translation which might be a problem down the line.
Conclusion
AVP Program is amazing if contractors put in a little effort and are patient. If you provide enough incentives that motivate the AVP drivers to work, they will stick with you for a long time. Because this program offers flexibility on both ends.
Contractors can cut costs, make Sundays somewhat profitable, reduce dependencies on rentals, and improve service levels. For more information, you can email us at fxgrecruting@beans.ai