Moral Hazard problem in a small business

[Jimbo]

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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

[CrushinFelt]

I would immediately fire any and every dispatcher until I found one that would not do this. You can't view it as "oh well that's part of the game." This is your business. They are stealing from you. Why in the hell would you want to employ someone that is stealing from you.

This isn't a moral hazard problem, this is a theft problem.