When selecting a commercial moving or logistics service provider, the decision often comes down to pricing and efficiency. However, one critical factor often overlooked is whether the company relies on solely contractor-based crews or its own W-2 employees. At first glance, exclusively using contractor-based crews may appear cost-effective, but this approach can also have some hidden risks that ultimately shift the burden to your business.
Why Do Some Commercial Movers Use Fully Contractor-Based Crews?
Ultimately, some companies in the commercial moving and logistics industries opt for contractor-based crews to minimize overhead costs and streamline their operations. Contractors typically own their trucks, supply their labor, and are compensated on a per-job basis. This model allows companies to bypass the expenses associated with maintaining a full-time workforce, such as salaries, benefits, and workers’ compensation insurance.
From a business perspective, this approach might seem like a savvy financial decision, allowing for easy scaling and reduced operational costs. However, what is essential here is to realize that this flexibility and cost-cutting often impact service quality, reliability, and customer satisfaction.
When the Risks Are Shifted to Your Business
When a commercial mover relies solely on contractors, they are essentially outsourcing responsibility—not just for the logistics of the job but for legal and regulatory compliance as well. This transfer of the responsibility can expose your business—as the customer—to significant risks in several ways, including:
- Compliance Issues: Contractors operate as independent entities, which means they might not adhere to the same standards of training, certification, or quality that a company’s full-time employees would. As such, if a contractor fails to comply with legal requirements—be it licensing, insurance, or workers’ comp—your business could be held liable in the event of accidents or violations.
- Inconsistent Service Quality: Since contractors are paid on a per-job basis, there is little incentive for them to invest in long-term customer relationships or uphold consistent service standards. A contractor’s priority may be completing the job as soon as possible rather than ensuring the highest level of care, which could lead to damaged equipment or inventory, inefficient workflows, and negative results.
- Lack of Accountability: Contractor-based crews operate independently of the moving or logistics company that hires them, which means your business may have little recourse if an issue arises. Contractors may not be as responsive or invested in resolving complaints, and the hiring company might have limited control over the situation.
At the end of the day, these risks are transferred to your business, which leaves you vulnerable to problems that would be better handled by an employee-based team.
Why Corovan’s Employee-Based Approach Makes a World of Difference
At Corovan, while we do sometimes use fully-vetted contractors, we believe that the key to delivering reliable, high-quality service lies in our employee-based crews. By employing the vast majority of our workers directly, we ensure every team member is trained to meet our corporate standards of safety, professionalism, and efficiency. This creates a culture of accountability, where employees take pride in their work and our company’s reputation.
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Learn MoreAdditionally, what further sets Corovan apart is our focus on employee ownership. As part-owners of the company, our employees have a personal stake in the business’s success. This drives them to go the extra mile in every job, guaranteeing consistency, reliability, and best-in-class service. Whether you’re moving an office or managing complex logistics, our employee-based crews deliver peace of mind that contractor-based operations simply cannot offer.
And we would love to tell you more about the Corovan difference. Reach out to us for a one-on-one consultation and learn why you should put your trust in our team.