1. "It's All About the Money Boys"
In the movie, "O Brother, Where Art Thou?
" the character Ulysses Everett McGill, played by George Clooney, tries to encourage his fellow convicts, Pete Hogwallop and Delmar O'Donnell by telling them that all the trials and troubles they are going through is for the money. He says, "It's all about the money boys.
Hourly employees, for all they want out of life and all you can offer them, it usually boils down to being all about the money. This is where you have a leg up on Uber. According to a National Public Radio (NPR) article
, a recent study conducted by MIT's Center for Energy and Environmental Policy Research found that the median pretax profit earned from driving for Uber ultimately comes to about $3.37 per hour after taking expenses into account. The study also found that 74% of drivers earn less than their state's minimum wage, and that 30% of the drivers are actually losing money once all vehicle expenses are factored into the equation.
What does that mean for businesses hiring hourly employees? Well, for one, it means that you have a better opportunity of attracting hourly employees and luring them away from driving services such as Lyft and Uber. Make it a point to shine a light on what you will pay per hour for your hourly employees and that they don't have to use their own vehicles to make the money. 2. Offer Tips and Bonuses
According to a report last year by The Information
, a tech reporting company, only 4% of Uber drivers remain in that position a year after taking the job. The report found that the number one complaint was concerning pay and not being able to accept tips. While Uber is said to be making some changes in some markets to the tips issue, it doesn't seem to be happening fast enough for many Uber employees.
Uber has also been accused of bullying its way into cities and recruiting employees aggressively by offering $1,000 signing bonus for current taxi drivers in hopes of getting them to jump ship. And, if the applicant doesn't have a car, Uber offers Uber Xchange, a leasing program that helps people with low credit scores get a vehicle. The problem is that the employee is then stuck with a vehicle that is overpriced and a lease that is costly to get out of.
One of the things you can do as an employer competing against Uber is to highlight your tips program, (if you are a restaurant or business that accepts tips), and to offer a bonus for loyal employees. For example, you may want to offer a $500 gift card or $300 bonus for employees who stay longer than 90 days. Get creative and remember that you are competing with a share driving service with deep pockets that wants the same candidates you are striving for.