How do I tell if a courier firm’s drivers get paid on time and accurately?
Compare the pay records to what drivers say. Ask for recent pay runs, route or delivery logs and any pay disputes, then speak to a few drivers, with the owner’s permission. If the paperwork is clean and drivers confirm it, that is a good sign. Complaints about errors or delays need explaining.
Start with how drivers are paid: by route, by stop, by hour, or by a mix. Whichever it is, ask how the calculation works and who checks it. Request a sample of recent pay runs and match them to delivery or route records. Differences between what was delivered and what was paid are worth a question.
Ask whether pay has ever been late, and how the owner handled it. Look for records of corrections, adjustments and complaints. A tidy list of disputes with clear resolutions is better than none at all, because it shows someone is paying attention.
Then talk to drivers. Ask whether pay arrives when expected, whether mistakes get fixed quickly and whether fuel, tolls or tickets are treated fairly. Notice what they say about the dispatcher or owner. Turnover is a clue. If drivers leave often, ask why. Your accountant should confirm how drivers are classified and whether payroll records are in order, since that affects what you take on. Ask the seller how the pay process will work during the handover, so drivers are not worried about their next pay run while ownership changes. Compare what you hear with the written records and note any difference for your accountant.
Key takeaways
- Match pay runs to delivery logs and look for differences.
- Ask about late pay, corrections and how disputes were settled.
- Talk to a few drivers and ask why others left.
Related reading
13 pages on the same subject, grouped by topic.
Buying
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- Expert answerHow do I review a courier firm’s scanners, handhelds and driver apps?
- Expert answerHow do I check a courier company’s contractor driver agreements before buying?
- Expert answerHow do a courier company’s drivers cope with snowstorms, and how do I check it?
Due diligence
- Expert answerHow do I check if a same-day delivery firm’s drivers are employees or contractors in practice?
- Expert answerHow do I judge how often a courier company’s drivers miss delivery windows?
- Expert answerHow do I judge a last-mile delivery company’s driver turnover before I buy?
- Expert answerHow do I check whether a courier company’s drivers are happy and likely to stay?
- Expert answerHow do I assess a rental yard’s delivery and pickup driver arrangements?
- Expert answerWhat should I ask about a florist’s delivery drivers and routes?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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