Creating a logistical ballet is awesome. Staffing trucks sucks. SlipSeat makes staffing trucks awesome.
You can’t create your ballet without drivers but putting drivers in your trucks and keeping them there isn’t as easy as people think. This is where we come in.
If you are familiar with driver leasing, SlipSeat is essentially driver leasing with 1099s. If you aren’t familiar, driver leasing companies are like specialized DOT temp agencies that supply 3rd party W2 truck drivers to motor carriers.
Conceptually, we do the same thing as a driver leasing company – we supply 3rd party contract drivers and owner ops to motor carriers. The same joint employer laws apply to the SlipSeater/carrier/SlipSeat relationship, and your accident liability is the same. The biggest difference is the cost.
Below is a 3-way cost comparison of the first month of a new driver based on source: A) internally, B) through a DOT temp agency, or C) through SlipSeat. The driver earns $1600 per week (Intrastate, 56 hours @ $25/hr), and at the end of the four weeks, the driver is your employee.
3-Way Cost Comparison of the First Four Weeks of a Driver, by Source
A) Internal Hire
Internal Hiring Cost: $2,250
Screening Cost: $250
Weekly FL Payroll: $2,080
4-Week FL Payroll: $8,320
SlipSeat is 25% less
B) DOT Temp Agency
Weekly driving: $2,640
4-Week driving: $10,560
Placement fee: $2,500
SlipSeat is 38% less
Weekly driving: $2020
4-Week driving: $8080
Placement fee: $0
Driver take home is greatest
A) Notes on Internal – In this scenario, you hire the driver and test for 4 weeks. The “Internal Hiring Cost” quantifies your costs and time – the ads and your time spent screening candidates, doing interviews, checking facebook, etc.; it doesn’t include opportunity cost which can add up fast when you have loads sitting. 30% payroll load assumed for payroll tax, work comp, benefits & bonuses. Fully Loaded Payroll = Payroll + ( Payroll X 0.30 )
B) Notes on Agencies – In this scenario, the agency places a driver for 4 weeks, and at the end you hire the driver. The cost estimate for the Temp Agency is based on a 65% mod factor. Agency Weekly Billing = ( $1600 + ( $1600 X 0.65 ) )
C) Notes on SlipSeat – In this scenario, you test out a SlipSeater for 4 weeks and then hire the driver. SlipSeaters set their own rates so it’s hard to know exactly what they’ll charge, but we can get a good estimate by taking the $1600 and adjusting for self employment tax, and a Keep rate of 85%. Estimated SlipSeat Billing = $1600 / 0.9375 / 0.85