Keep On Truckin' With a PEO
How PEOs Are Keeping Trucking & Transportation Companies On the Road
The trucking and transportation industry has always played a key role in the American economy. Post-industrial revolution, the industry helped lay the foundation for the America we live in today. Whether drivers are hauling food, lumber, tools, electronics, office supplies, fossil fuels, or construction equipment; we rely heavily on the products they deliver in our everyday lives and beyond.
The competition in this industry has only become more prevalent due to tensions over seas, the global pandemic, and economic certainty, every penny counts to keep trucks on the road and products flowing. That is why PEO solutions can be a vital solution to keeping companies on the road.
Even with a stronger media presence than ever, people still take the industry for granted until they realize it is impacting them directly. Whether people think its fake news or not, a trucking and transportation shortage can be detrimental to their pocketbooks and the price of goods.
Still questioning the importance of the industry? Let’s backtrack to what seems like oh so long ago to the start of the pandemic. Do you remember walking into the grocery to empty shelves as you anxiously awaited the arrival of that fresh pack of toilet paper? Thank the trucking and transportation industry for that roll of TP.
But all kidding aside, trucking and transportation companies face considerable challenges in keeping their fleets on the road and a lot of those challenges are related to one unavoidable fact: operating heavy machinery can be tough on the body.
Even when you take major incidents like vehicle crashes out of the equation, drivers often experience severe back pain from repeatedly lifting heavy items and sitting for long periods of time while making deliveries. Slips and falls in warehouses aren’t uncommon and then there are other random occurrences that can result in injuries that leave drivers unable to perform their regular duties.
Though routine vehicle maintenance and driver training can cut down on some of these incidents, due to the nature of the industry, there’s no way to prevent them entirely. For trucking company owners, the costs of securing workers’ compensation to ensure their team is protected can be exorbitant. And newer companies that have never had coverage before can have a hard time finding a traditional carrier that is willing to take them on based on their lack of history.
Fortunately, trucking and transportation companies have an ally in the form of a PEO. A PEO, also known as a Professional Employer Organization, is a single-source provider of integrated business services that enables business owners to responsibly and cost-effectively outsource many of their human resources, administrative, and employment-related tasks. Plus, and perhaps most importantly, they can also help with workers’ comp and risk management.
“A PEO can be a major source of support for these companies,” said Patrick Moraites, a partner and vice president at Tampa-based Axis Group. “And there are a number of PEOs that specifically work with trucking companies and have a deep understanding of their needs and their business models.”
To break it down a little more, here are a few other ways a PEO can be of service to a trucking company:
● Due diligence: In the trucking industry, driver performance is key to success and the last thing an owner needs is to hire someone who is known to be unsafe. The PEO can perform background checks to make sure potential new hires have a clean driving record and are capable of operating a truck safely.
● Ensuring appropriate care in case of an injury and getting claims closed out as soon as possible: Because PEOs have such a large deductible, it behooves them to play an active role in making sure that medical care isn’t getting out of line and that physicians aren’t taking advantage of the situation. This is especially important because if you’re paying out more in claims than your insurance company collected in premiums, you could end up with a fee increase or worse – your policy could get canceled altogether.
● Creating a light-duty program: When a driver can’t work due to an injury, workers’ comp will cover that person’s wages – and over time, that can negatively impact your claim-versus-premium ratio. By having a light-duty program in place where drivers can work in an administrative capacity and receive their normal wage while they’re off the road, you can limit the amount your policy pays out, thus protecting your insurance coverage.
For all these reasons – and many more – hiring a PEO is a practical solution for trucking and transportation companies that are looking to operate safely while maximizing their profitability.
“It’s a win-win situation,” Moraites said.
If you’re part of the trucking and transportation industry and you’d like to learn more about your PEO options, the team at Axis Group is here to help. Contact us today for a free consultation.