Hello to everyone within the Million Dollar Community! As always, I hope this message finds you all doing well and business is booming!
I don't typically share questions from the "Members Only" section of UMTPG.org, but considering how many providers can benefit from this particular Q&A, I thought it appropriate to share:
QUESTION:
We have 6 vehicles and as many drivers. Everyone has a cell phone so we have our drivers use their own personal cell phone for communication with dispatch. We are considering the DME apps to make communication and dispatch more efficient. We discussed this at one of our company meetings. Some feedback we received was the company providing cell phones to drivers. My question is should our company own all the phones and, therefore, have control of the use? Or, is it an acceptable expectation that an employee should have a cell with the needed data packages that they own and maintain themselves?
ANSWER:
Excellent question. There’s NO question, you have to integrate technology into your business. Not only is it easier and more convenient for your operation and logistics now and as you grow, but it will save you more money long-term in labor and effort. In terms of DME specifically, one of the primary purposes for creating the app and mobile functionality was specifically to allow your drivers to use their own cell phones to reduce your overhead expenses.
Let’s look at the two scenarios:
Scenario One – Providing drivers with cell phones: This is, obviously, an added expense that you’ll need to budget for and adversely affects your bottom line. You’ll need to cover the upfront cost of the cell phones, monthly usage, repairs, and accessories. Case in point, in my NEMT business, I was averaging $4,500 per month just in cell phone usage! To be clear, that doesn’t include the upfront cost for new phones, accessories, or repair services. Further, this was before smartphones became the norm so, back then, you could still purchase traditional two-way phones for $300-$400. Now, with smartphones being the norm, the upfront cost is much, much more which impacts your bottom line.
Scenario Two – Drivers use their own cell phones: This tactic will, obviously, SAVE YOU A TON OF MONEY! And guess what, it’s NOT an unreasonable expectation as long as it is clearly announced and articulated in advance as a job requirement. You will want to stipulate this expectation on your applications and during interviews. The reason why such a “job-requirement” is not excessive is because, as you mention, everyone has a cell phone! And, pretty much all cell phones are smart phones so they can support apps and web-based functionalities.
However, if you do require your drivers to use their own cell phones, I suggest you do two things as follows:
First, offer to pay a $25-$30 per month “stipend” toward the cell phone plan for each driver. I know, I know, this will still be an added expense and will affect your bottom line. But I can assure you, it will still be a HUGE savings to you, especially when you consider the investment required to purchase new phones for all your drivers and then have a few in reserve. Furthermore, paying smaller monthly stipends towards monthly cell phone usage while on duty will serve as goodwill, help your drivers financially, and cover you from any possible complaints or suggestions that you’re taking advantage of such a convenience.
The second tactic I encourage you to do is draft a simple Agreement articulating this arrangement. More specifically, clearly articulate the amount you will pay each month as a stipend with the associated conditions - the stipend is specifically in exchange for possible cell phone usage while on duty, it does not cover cost of repairs, you won’t pay for phone replacement, or accessories. All such expenses are the responsibility of the driver. You are ONLY contributing to their monthly cell phone usage.
I hope this helps many of you. If you're not yet an active member of the UMTPG, please feel free to visit and join us at https://www.umtpg.org.
See you at the Top!
Joel E. Davis
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