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Can Fleet Innovations Solve the National Worker Shortage? – Activity


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The photos above and below are not staged, posed, or edited. Unfortunately, these scenes are pretty common in most industries today across the country. While it is never easy to hire well-qualified workers, it is clear that demand is on the verge of crisis considering slowing production lines, reduced retail hours, and the general scarcity of goods. goods and services lead to longer wait times, fewer choices, and higher prices.

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Part of the problem in finding entry-level employees is transportation; It’s hard to buy a new car without a lot of capital. Unfortunately, public transport is not an option, as in most areas of the country public transport does not get to and from the right places in a “feasible” way in a timely manner. The transportation alternatives currently popular with more affluent households – such as carpooling and car sharing – are too expensive to be a realistic sustainable long-term solution. This has resulted in what is now known as a “transportation desert” which leads to more unemployment and “food desert”, etc., as has been studied and documented in academic research. art, “Poverty of People Without Cars: Towards Global Auto Access,” prepared by university professors David A. King (Arizona State University), Michael J. Smart (Rutgers, The State University of New Jersey), and Michael Manville (University of California).

The study notes that not owning a vehicle leads to poverty, as the means to get there are not practical and sustainable jobs, creating “poverty of those without a car.” . For example, between 1960 and 2014, the poverty rate in the US fell from 24% to 14%, while for households without a personal vehicle, the poverty rate increased from 42% to 44%. Households without a means of transport are increasingly lagging behind households with a means of transport and are poorer today in absolute terms than they were 60 years ago.

Closer to and independent of this study – and many years before the current pandemic crisis and labor shortage – a large number of employers with primary qualifications have determined that the digital obstacle 1 for employee success input is lack of transportation. The company researched the issue and implemented a program through outsourced providers to empower people who don’t have the means to commute; they provided access to technology and processes that facilitated a hire-to-own program with employer incentives available to any individual, regardless of credit or prepayment , can initiate the vehicle ownership process through a rental, with the amount accruing in the required upfront purchase with each rental payment. It’s an easy, transparent process by which any employee can buy a quality used car over time while driving it, with free access to jobs, completion of tasks, and more. errands” or generally commuting in the same way as the vast majority of other residents.” This has become a viable solution for a segment of the general public lacking both the credit and the down payment capital to buy a car. immediately, except for self-funded used-car shipments — the infamous “Buy Here / Pay Here” area of ​​auto retail.

For the uninitiated, Buy Here / Pay Here in the retail car business is similar to a “payday loan” in the lending business — legal, but they offer interest rates and Overpriced for those who can afford it. Clients rarely exit successfully.

Turnkey and comprehensive third parties handle insurance, telecommunications, services, etc. and although this company is not involved in fleet management, imagine such a scheme would be more efficient. how much if a professional fleet manager is involved, working alongside human resources and people in the organization in support of environmental, social and governmental goals and objectives — that’s really a win/win for all.

This is admittedly a far cry from providing company fleet vehicles or even remarketing fleet vehicles to company employees; it will not be “day in and day out” but provide high-level mission, plan and program monitoring and evaluation to a third-party managed program that is outsourced to facilitate ownership. for senior employees who are struggling. While the parent company is not responsible or liable for the company’s assets or direct costs, it will make the most of the fleet’s honed expertise in selecting the right vehicle. proper maintenance, and safety instruction, especially when combined with human resource expertise for staff selection, credit and financial advice, and general entry level up.

Such an approach could alarm many large corporate organizations as the sector has long been recognized as the responsibility of governments or charities (although, as the treatise “Poverty of people without a car” pointed out, while there are many programs for disadvantaged people whose homes do not have electricity, besides no one lacks a means of transport). On the other hand, in a time when senior employees are in great demand, the introduction and facilitation of such a program can have a profound effect on a company’s goals and bottom line profitability, And who better than fleet management to oversee such a program, as it relates to the use, care and ownership of a motor vehicle?

One final positive note — such a program would turn the service pyramid around by providing a program of vehicle assistance to those who need it most in a transparent and fair process, and at the same time help achieve the company’s employment goals and ESG (environmental, social and governance) goals at the same time.

In today’s market, many companies offer thousands of dollars in “on-the-go” bonuses and hourly raises, but there’s still a shortage of quality employee input (some companies are actually offering them for the first time). equity for hiring hourly employees). Offering a rental-to-own vehicle purchase assistance program not only provides a strong hiring incentive, but also enables a pool of new hires to accept the job in the first place. Such a program doesn’t just build incredible goodwill and empowerment — it can literally change lives both inside and outside of the workplace.

About the author

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John F. Possumato is a renowned consultant, author and speaker in the automotive industry. He is the Founder and CEO of Driveitaway Inc., a turnkey consumer application/cloud computing platform that enables agencies and employers to deliver solutions. New migrations for their employees, including easy rental digital vehicle, turnkey ownership programs.

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