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Old 11-30-2007, 01:29 PM
Jimbo Jimbo is offline
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Join Date: Sep 2002
Location: Planet Earth but relocating
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Default Re: Moral Hazard problem in a small business

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There are too many variables for such software - what kind of load it is, when it needs to be there, the drivers' special needs (doctors' appointments, family obligations, general whining), and a bunch of others that need human discretion.


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There is commercial software on the market that will do this but it might not prove cost effective for you.

Personally I would treat it like I did in my bar business. I know that 75% of my employees were going to steal from me. I added some incentive bonus programs and reduced it to 50%, I fired the worst offenders and made sure the remaining ones knew why. I tolerated the remaining amount of theft as both inevitable and just a cost of doing business. Afterwards I slept well at night and hardly thought about the thefts again other than to monitor the ratio and make sure it stayed in line with acceptable losses.

Jimbo
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