A FedEx contractor plays a very important role in the logistics business. But what exactly is the process of making the payments? This indeed is a very vital question. In this blog such questions are going to be answered. How FedEx and GroundMetrx takes care of this extremely important aspect of the logistics business will be seen in this blog.
The way drivers get paid and the payroll is managed have a great impact over the
profitability of the business and also over the productivity of the team.
Let us now see how the FedEx Ground businesses pay their drivers. First we look into the different ways in which FedEx pays its P&D drivers.
Understanding important facts about the method of payment by Fixed Daily Wage
- The most popular way of paying the P&D drivers by logistics businesses is by means of fixed daily wage.
- This method of making the payments to drivers is quite efficient as payment is based on the attendance of the drivers.
- Thus predictions about the expenses can be easily made by the business.
- The forecast about the cost associated with the business operations can also be made effectively by FedEx Contractors
- The fixed daily wage is a method which incentivizes the drivers to be extremely efficient and encourages the drivers to return back to the terminals and maintain the regularity always.
- Drivers tend to gain a sense of control over the days during which they work.
- The drivers feel financially secure also as they understand that they would receive a certain amount of payment after the completion of their work for the day and it need not matter if the volume of work is light or if they complete their work earlier.
- One disadvantage of the method of fixed daily wage is that it could make the drivers rush during their working hours and compromise with their safety in order to save time.
- Another problem revolves around the fact that the drivers may not be inclined to devote their time to extra work or may even do only the minimum amount of work as they become aware that they are not going to make more money.
- These challenges can be overcome by emphasizing on the factor of safety and it also becomes important to closely monitor the behavior of the drivers so that they do not cut corners and work in conditions that are not safe and the FedEx Contractors need to consider these factors.
- It is also a good option to offer drivers incentives and bonuses to encourage them so that they help each other and also deliver excellent services.
- When incentives are offered then drivers understand that they can make more money that goes beyond their daily rates by covering extra stops and delivering exceptional services.
How do FedEx Contractors manage the system of hourly payment?
The next most popular method of making payment to the P&D drivers is by considering the hours. When payment is made to the drivers by tracking the hours then it makes the process of paying overtime easier. However there is one problem associated with the method as it increases the risk or chances of fraudulent activities taking place. FedEx Contractors need to properly keep a track of the clock-in and clock-out time of the drivers. This shall help prevent the occurrence of fraudulent activities. One major problem associated with this method of hourly pay rate is that the drivers often become inefficient and they may take longer hours to deliver packages than they should be taking. Strict monitoring is essential to prevent such incidents from occurring. Log onto mygroundbiz.com to learn more.
Considering the stops covered and processing the payments
Another method of payment which is not so common among FedEx Contractors is that of making payments to P&D drivers in terms of every stop covered or every package that is delivered. This is a method which actually aligns the payment made to the driver along with the productivity of the driver. The more the stops that the driver covers the more the amount is paid to the driver. As a result drivers are encouraged to devote themselves to additional work. But this method of making payments is not recommended at all. Paying per stop and ascertaining the calculations for making the payments is a complicated process. Also it may lead to problems with drivers trying to rush to cover more stops and the factor of safety comes in.
The unique payroll management system developed by GroundMetrx for FedEx Contractors
Moving to GroundMetrx’s payroll management system. In the system, different entities are created. The entities are listed down along with paygroup names. The different drivers considered for the payroll system include linehaul drivers, and P&D drivers. The drivers are further categorized as daily, mile and hourly drivers.
- A particular payroll week is considered.
- There is a time dashboard where the details about the regular hours or the hours that the driver has worked for, the overtime hours, the holiday or the sick or the vacation taken by the driver, the total days worked, are all mentioned.
- This forms a vital part of the payroll system.
- The earning codes also play an important role in the payroll system of GroundMetrx.
- The concept goes as follows: When the driver opts for a paid leave, then the admin from the earning code section selects the mode of payment he wishes to pay through, that is, whether hourly or amount.
- If he selects the amount option it gets added onto the reimbursement column in the final payment sheet and if he selects the hourly pay option, it gets added onto the column of Regular hours in the final payment sheet.
- Either way he gets paid for the applied leave if there is enough time in his bucket.
- The concept of minimum wages also needs to be mentioned here.
- Specific wages are set for particular states by the FedEx Contractors
- Minimum wages refer to the minimum rate which needs to be paid per hour to the drivers belonging to that particular location.
- The calculations for making the payments are done in a logical manner in the final payment sheet by considering all the factors like the pay type, that is, whether the driver is paid on the basis of miles, hours or daily basis (the minimum wages are applicable for the drivers who are paid on the basis of hours); the overtime hours, the number of days worked or the number of miles traveled, the total number of hours the driver works in a week, any holiday or sick or vacation leave taken by the driver.
- Also if any kind of extra payment is made to the driver then it is mentioned in the final payment sheet.
- All the calculations associated with the payment which is supposed to be made to the driver are made in a logical and systematic manner.
- The reimbursement which the company pays to the driver also gets added in the final pay.
Make your payroll system efficient with GroundMetrx
Thus it was seen how GroundMetrx handles the payment processes in an efficient way. They follow a systematic approach which makes it simple and easier to pay the right and exact amount to the drivers. The working hours are tracked in the finest way possible. No discrepancies can ever happen with the functioning of such a sound system of payroll. Features like the earning codes and the minimum wages make the process even more efficient. It is needless to say that GroundMetrx has introduced wonders in the world of logistics and has contributed a lot to help FedEx contractors in the greatest way possible. So without any further delay, contact GroundMetrx today and take your logistics business to the next level.
The payroll system developed and introduced by GroundMetrx is an excellent system which takes into account all the minute details before making the final payment. The time card and the payment sheet are important features of the payroll system of GroundMetrx which considers details about the exact working hours of the driver and other important information which is required to complete the payroll system in an efficient way.
FAQ
Which is the most popular way of paying the P&D drivers?
The most popular way of paying the P&D drivers by logistics businesses is by means of fixed daily wage.
Why is this method of making payments through fixed daily wage so very efficient?
This method of making the payments to drivers is quite efficient as payment is based on the attendance of the drivers.
Which payment method makes paying overtime easier?
The hourly system of payment makes tracking of hours and paying overtime easier.
What is meant by minimum wages?
Specific wages are set for particular states by the FedEx Contractors.
Minimum wages refer to the minimum rate which needs to be paid per hour to the drivers belonging to that particular location.
How are the calculations managed in the final payment sheet by GroundMetrx?
The calculations for making the payments are done in a logical manner in the final payment sheet by considering all the factors like the pay type, that is, whether the driver is paid on the basis of miles, hours or daily basis (the minimum wages are applicable for the drivers who are paid on the basis of hours); the overtime hours, the number of days worked or the number of miles traveled, the total number of hours the driver works in a week, any holiday or sick or vacation leave taken by the driver.
Also if any kind of extra payment is made to the driver then it is mentioned in the final payment sheet.
