Freight Brokerage Business - The Staff of Entrepreneur Media, Inc. Startup Guide

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Keep People in Perspective

      There is no business where the slogan “people are our most valuable asset” is more true than in transportation, and taking care of your people is certainly important. But it’s also important to keep the relationship of the individual to the company in perspective.

      “When you hire people, you can never let them think they are more important than the company,” says Indianapolis-based freight broker Chuck Andrews.

      When he started his company, he hired a few people who brought business with them; they had an inflated opinion of their value to the company and used that to attempt to manipulate Andrews. Don’t give in to this brand of professional blackmail. Of course, it’s possible that when you lose certain employees you may also lose some customers—but it’s also possible that you won’t, and it’s highly unlikely that the loss of one person can destroy your business if you’ve built it properly. Andrews stated, “You have to let employees know they’re important to you, but you can’t let them think they have you over the rack and can come and go as they want.”

      aha!

      Find out what your employees want in the way of benefits and perks before you spend time and money developing a package. Do a brief survey; ask what they think of the ideas you have and ask for their ideas. If they want something you can’t afford to do, don’t reject it immediately; figure out what you can afford, and explain the situation to the employee.

      Employee turnover is an important issue in the transportation industry, especially in sales and customer service positions. Remember, this is a relationship business, and when you have employees who have built strong relationships with customers and carriers, you have employees who will be the constant target of recruiting efforts by other companies.

      Some of the costs of turnover are fairly easy to calculate; others are essentially priceless. When someone leaves, you have the hard costs of paying overtime to other employees to get that job done until a replacement is found, of recruiting (advertising, screening, interviewing, etc.), and of training. Those numbers are fairly easy to figure. Harder to calculate is the cost in customer relations and goodwill. You may even lose a few customers who opt to follow the departed employee to a different broker or carrier.

      Bill Tucker says the key to keeping turnover down is to avoid seeing your relationship as an employer-employee one, but rather as partners. That certainly includes bonuses and profit-sharing programs, but it goes beyond pure financial incentives. Employees need to participate in the decision-making process; they need to be encouraged to contribute ideas and solutions.

      People also need to be treated with fairness and compassion. It isn’t realistic to expect people to leave their personal lives at home. When employees need you to be flexible about family issues—whether it’s taking a few hours off to watch a child perform in a play or needing help dealing with an elderly parent requiring full-time nursing care—it’s not only kind but wise for you to provide as much assistance as possible. Along with doing the humane thing, you’ll be building a level of employee loyalty that can’t be bought for any amount of salary.

      warning

      Sometimes small companies lose good employees to larger firms that have better career opportunities. They may not be attracted as much by the money and benefits as they are by the room to grow and advance. Do the best you can to offer career growth to your people.

      Training is an area of managing people that you can’t escape. Many of your employees come on board with at least a basic knowledge of the work they must do. But even the most experienced need to be trained in your particular operation and procedures.

      The transportation industry has an abundance of training opportunities, from formal courses of study at colleges and universities to special conventions and workshops to monthly professional association meetings. It’s a good idea to support a variety of training opportunities. For example, MCD Transportation provides both formal and on-the-job training and maintains a company library with current publications. Employees are encouraged to work on their professional certification, and the company pays for related studies. The company also pays for costs related to membership and participation in professional associations.

      Whether done in a formal classroom setting or on the job, effective training begins with a clear goal and a plan for reaching it. Training falls into one of three major categories: orientation, which includes explaining company policies and procedures; job skills, which focuses on how to do specific tasks; and ongoing development, which enhances the basic job skills and grooms employees for future challenges and opportunities. These tips will help you maximize your training efforts:

      • Credential Potential

      Gain additional respect for yourself, your staff, and your company by encouraging your employees to earn the Certified Transportation Broker (CTB) designation. The CTB credential was developed by the TIA to increase industry professionalism and integrity through a rigorous program of study and examination. Candidates complete a home-study course designed around academic scholarship and practical experience and then sit for a four-hour proctored exam to earn their credentials. For more information on CTB certification, contact the TIA at (703) 299-5700 or www.tianet.org.

       • Find out how people learn best. Delivering training is not a one-size-fits-all proposition. People absorb and process information differently, and your training method needs to be compatible with their individual preferences. Some people can read a manual, others prefer a verbal explanation, and still others need to see a demonstration. In a group-training situation, your best strategy is to use a combination of methods; when you’re working one-on-one, tailor your delivery to fit the needs of the person you’re training.

       With some employees, figuring out how they learn best is a simple matter of asking them. Others may not be able to tell you because they don’t understand it themselves; in those cases, experiment with various training styles and see what works best for the specific employee.

       • Use simulation and role playing to train, practice, and reinforce. One of the most effective training techniques is simulation, which involves showing an employee how to do something and then allowing them to practice the technique in a safe, controlled environment. If the task includes interpersonal skills, let the employee role-play with a co-worker to practice what they should say and do in various situations.

       • Be a strong role model. Don’t expect more from your employees than you are willing to do. You’re a good role model when you do things the way they should be done all the time. Don’t take shortcuts you don’t want your employees to take or behave in any way that you don’t want them to behave. On the other hand, don’t assume that simply doing things the right way is enough to teach others how to do things. Role modeling is not a substitute for training. It reinforces training. If you only role model but never train your employees, your employees aren’t likely to get the message.

       • Look for training opportunities. Once you get beyond basic orientation and job skills training, you need to constantly be on the lookout for opportunities to enhance the skill and

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