How Much Does it Cost a Company to Hire a Driver?

Discussion in 'Questions From New Drivers' started by insipidtoast, Jan 31, 2023.

  1. Moose1958

    Moose1958 Road Train Member

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    If a new hire is fresh out of school and the company has no investment in the school that cost is zero. Also, some carriers get tax credits when it comes to training. When it comes to the hiring process almost everything else is cost fixed. HR is there all the time. The recruiters are as well. Regardless if they are employees of the carrier or contractors. So much of this process is considered a fixed cost. Some of it qualifies for tax credits. The only way to really get a good figure is to take all the fixed costs and take out the tax credits. Divide this by the total number of hires in a year. Then take that figure and add any special things required for that specific hire. Now understand this is JUST for the hiring process. This is a drop in the bucket to all the other costs to stay in regulatory compliance with the Federal and State Governments. Heck, just take 6% (FICA) of the total company payroll with a carrier such as Swift and you are talking about millions of dollars. Now add to all of this, (((((insurance))))).
     
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  3. insipidtoast

    insipidtoast Heavy Load Member

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    That makes me doubt following the advice of "submit the application first and then call with your follow-up questions so that they already know who you are."
    Looks like the courteous thing to do would be to just fire off all the questions right off the bat, before you make them spend $2500 in vain, just because their website didn't say "No APU"
     
  4. insipidtoast

    insipidtoast Heavy Load Member

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    Wow! So roughly $300 dollars. That's a pretty big discrepancy to the $2500 quoted above.
     
  5. insipidtoast

    insipidtoast Heavy Load Member

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    Here's a question to all you employers:

    Would you prefer that a potential applicant call or email your recruiter and ask about all their doubts first, or would you prefer them to submit the application first?
     
  6. DRTDEVL

    DRTDEVL Road Train Member

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    That's not including man-hours or subscription fees to places like Tenstreet. If you read on, the total beyond specific background processing is in the thousands.
     
    Last edited: Feb 2, 2023
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  7. DRTDEVL

    DRTDEVL Road Train Member

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    Call first or last, doesn't matter. Now if you have a specific issue in your background, sure, call to find out if that's a non-starter. If you have a specific requirement not listed on our website, call and ask. No need to waste anybody's time, yours our ours.
     
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  8. insipidtoast

    insipidtoast Heavy Load Member

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    I can't believe paying your office employee to process that paperwork would add an extra $2200 to the cost of that one driver applicant.

    Yes I did read the rest of your post. However, if my understanding is correct, espressolane was focusing on processing the paperwork/backround reports for the applicant.

    Your total figure of all costs considered is in a completely different ballpark than espressolane's.
     
  9. insipidtoast

    insipidtoast Heavy Load Member

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    Only call last if I'm already 100% sure I want to work for you and think that I will be a good fit?

    I think this is a less confusing answer. So basically if I have any doubts, call before submitting the application?

    I'm just trying to put myself in your shoes. If it were my company I would not want to have to spend hundreds or thousands of dollars to process an applicant's paperwork, if that applicant is later going to find out something that my recruiter didn't communicate properly or something that wasn't listed on the website, and that something ends up being a dealbreaker for the applicant. I would spend the hundreds or thousands to have no employee.
     
  10. DRTDEVL

    DRTDEVL Road Train Member

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    Its not singular in nature. The costs are averaged out across all applicants, and there are probably a dozen or more applicants we say no to each month after running their background, and we only hire 2-3 per month. So or every hire, we process 6-8 applications.
     
  11. insipidtoast

    insipidtoast Heavy Load Member

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    economy of scale
     
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