Amazon can really tie the hands of DSPs when it comes to impacting driver behavior. They will not let a DSP dock hourly pay for any driver that misbehaves, such as driving recklessly and getting involved in an accident, losing or causing excessive damage to uniforms, abandoning a route, and other behaviors that can be quite costly.
One the most frustrating examples of this type of DSP constraint is that only drivers are allowed to punch in and out for the day, and the DSP has almost no control over this. While Amazon does allow some edits to payroll hours by the DSP, this is frowned upon, and if a DSP exceeds a certain percentage of all punches, Amazon will pay a visit to the DSP and tell them to either stop it, or they will cancel the DSP’s contract. Amazon will not tell DSPs what that magic % is.
Because of this policy, the DSP must do everything they can to track down invalid hours and somehow entice the driver to correct them. This can only be effectively carried out using a two-step process:
- Quickly identify the issue in less than 24 hours of the bad punch
- Somehow entice the driver to fix the bad punch
It is crucial the issue is brought up as soon as possible so the driver can remember actual hours worked. Assuming you work out the details and know how to identify a ‘bad punch’, this process can quickly become a huge overhead, as someone must analyze hours each day and compare what payroll says vs. what really happened.
To address the ‘enticement’ part, some DSPs might try to take the driver off of the schedule until they fix the time, but the DSP is really hurting themselves by risking dropped routes or an increased number of rescues in the meantime. And if a driver is in the process of quitting, this obviously is not going to work.
Instead, a DSP might try to hold back pay until the problem is addressed. Unfortunately, Amazon will not allow a DSP to hold back any hourly pay – no matter the reason. The only way around this is to pay drivers a base rate of $15/hour (which may be more in some markets) and pay out the remaining balance as a bonus, which the DSP can hold back at-will. Sadly, this adds yet another layer of complexity as now the DSP must calculate bonuses each week for every driver.
Ciibo to the Rescue
Ciibo automatically solves the problem in a 3-step process, that will save a person 10 hours or more each week.
Automatically Identify Bad Punches
Dispatchers can record actual hours each day either using a spreadsheet which is then uploaded to Ciibo, or directly in the Ciibo app (web or mobile). Punches recorded by the driver are then automatically imported each day from your payroll provider (Paycom or ADP), which is then compared with the times recorded by dispatch. Any discrepancies are noted and show up in the Ciibo dashboard, which is linked to a detailed report describing each day and the discrepancies found.
Notify the Driver(s)
Form within the discrepancies report, you can quickly select the drivers who have punches needing to be fixed, and have Ciibo either send a text message or an alert within the Ciibo Driver mobile app. This message will contain the date, payroll punch times and the hours recorded by dispatch, so the driver will know exactly what needs to change.
Hold Back Bonus Until the Issues are Fixed
Each week, you can run a bonus report that shows the dollar amount to be paid to every driver for that week. This report also highlights drivers having missed or invalid punches, so that you can choose whether to pay the bonus for that driver or not.