Many taxi business owners get stuck in the mentality of being cheap, which spreads all over their taxi companies. That's the exact opposite of how things should be done. You've got to create better working conditions, so that all your employees will have a fear of losing their jobs. It doesn't mean that your relationship with them should be solely based on fear, but fear should be there.
This is especially true when it comes to employees that deal with customers. In a taxi company that's pretty much everyone who works for you, except for mechanics and accountants. Drivers, dispatchers, reservationists, all deal with your customers all the time.
You want your customers to be treated like gold. A bitter, low-paid, unhappy employee is not going to treat your customers in such a manner. You need to take good care of those who work for you so that they can take good care of your customers.
The added benefit of taking good care of your employees is them realizing that if they screw up, they may lose the job and it's going to hurt. If you come across exceptional people, pay them better than other ones. You should be the best paying taxi service for the best performing drivers and dispatchers.
Don't keep it a secret. When someone wants to work for you, tell them: "hey, here's how much my best guys are making." Explain that your employees are making that much because of whatever it is: they may work long hours, come when you call them, work weekends, are being requested by passengers, etc. This is so that those who want to make as much money would have a goal to strive to and achieve.
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