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Competition is definitely good for the economy. But, it might not reap as many benefits for your business when i
t comes to competing for hourly employees. With ride-sharing services—like Uber—offering jobs with flexible hours and a convenient way to make a few bucks while using their personal car, competition for the hourly workforce is heating. So, how do you stand out?
We’ve got you covered. Here are four ways you can compete effectively against Uber for hourly employees:
1. Provide minimum wage
Workers in the gig economy are often looking for one thing: money.
Because of the pandemic, there's a shortage of drivers in the ride-sharing market. And while this has made it easier for drivers to earn more by the hour, Uber’s Vice President of U.S. & Canada Mobility, Dennis Cinelli, warned that this will not last. As the pandemic settles and more drivers return, it will become more difficult for them to maximize their earnings.
In Seattle, a city-commissioned study found that drivers only made $9.70/hour after all necessary deductions even though ride-hail drivers there have a minimum wage of $16.39/hour. Meanwhile, a proposed new law in Massachusetts might result in these drivers earning less than 40% of the city’s minimum wage after accounting for unpaid idle time, extra benefits costs and refunded mileage.
What does that mean for businesses hiring hourly employees? Well, for one, it means that you have a better opportunity of attracting hourly employees and luring them away from driving services such as Lyft and Uber. Make it a point to provide at least minimum wage and emphasize that they won’t need to use their own vehicles to earn money, nor will they have to face unpaid time during idle hours.
2. Give them time
When it comes to driving for Uber, there’s always that uncertainty of not picking up enough passengers. But you might be wondering–since there are fewer drivers in the market now, there should be sufficient customers to go around, right? Well, not exactly.
Due to the lack of Uber drivers, customers are experiencing an increase in fares of up to 79% and longer wait times. Naturally, this will steer customers away from Uber's services because it chips away at the convenience factor. As a result, Uber drivers may not maximize their earnings during their working hours. On the other hand, if the fares return to pre-pandemic levels as more drivers come back to the market, competition for passengers will increase.
Ultimately, an Uber driver’s pay is almost uncertain; there are too many variables at hand. You can compete with them for employees by guaranteeing a set amount of hours for your employees. If you have a full-time job opening, advertise the full 40 hours. And, if it’s possible for the hourly employee to work overtime, make that clear. Spell it out in dollars!
Hourly employees are typically working toward something—school tuition, rent, a new car, etc. Advertise the possibilities of income and let them know that they can have a structured schedule so they can anticipate how much they’ll be earning per paycheck.
3. Provide benefits
Because Uber drivers are categorized as independent contractors, they aren’t eligible for many employment benefits, including sick pay, vacation and holiday pay, and even minimum wage. If your company offers additional perks and benefits, showcase it.
There are many benefits you can offer to entice hourly employees to join your team. If your company offers vacation time or holiday or sick pay, let your candidates know. Millennials, particularly, value their time off to relax, recreate and entertain. And, in times of a pandemic, providing assurance in the form of medical benefits will attract more hourly workers to your company too.
4. Offer tips and bonuses
In the midst of the driver shortage, Uber is reportedly spending $250 million on bonuses to lure drivers back to the market. Uber drivers are earning more now than they would before the pandemic—and they were earning tips back then too. Now, we know it might not be feasible or sustainable to give out hefty bonuses all the time, but there are other things you can do to compete on this front.
One of the things you can do as an employer is to highlight your tips program, especially if your business allows your employees to receive tips. You can also offer a bonus for loyal employees. For example, you may want to offer a $500 gift card or $300 bonus for employees who stay longer than 90 days. Get creative and remember that you’re competing with a ride-hailing service with deep pockets that wants to hire the same candidates you’re striving to hire.
Make your move
Uber has undoubtedly grown into a giant since their inception in 2012. They’re likely one of your biggest competitors when it comes to hiring hourly employees—and for good reason. So, with that said, it’s on you to make sure hourly job seekers can clearly see why working for you meets more of their needs, and the four tips outlined above can guide you in positioning your role to be filled quickly.
If you're looking for more ways to stand out, check out 11 tips for writing a job post that grabs attention.
