Driver compensation is usually measured in terms of an hourly wage or a rate based on travelled distances, but an array of additional incentives can play an important role in helping your fleet retain workers, lower fuel bills, and reduce accident claims.

In a recent study, for example, the US Federal Motor Carrier Safety Administration (FMCSA) concluded that safety incentives helped studied fleets reduce insurance claims, workers’ compensation claims and crashes by 65%.

“Incentive programs that offer progressively increasing safety bonuses for longer periods of crash-free operation would give drivers a material reason for staying with their employers rather than moving to another place of work, where they would have to start again to accumulate safety credits,” the administration added.

Traditionally, fleets pay safety bonuses equivalent to a cent per mile, but some will pay more than two or three cents, says Ray Barton, co-author of Incentive Programs for Enhancing Truck Safety and Productivity, a Canadian study into the issue.

“The companies that felt the strongest about their safety programs, they had both the financial incentives as well as the recognition incentives,” he adds. “The younger drivers prefer the idea of the money. People in the business a little longer, they liked the idea of the recognition.”

Barton points to his own wall of honours as proof, and a proudly displayed coffee cup that was offered for giving a presentation. “It doesn’t have to be a very expensive prize that goes with it. Just something that people can put up on their wall at home and the family can look at and be proud of,” he says.

In comparison, a financial incentive disappears once it’s spent. Financial rewards that are included in such a program should also be paid quarterly, the consultant says, noting that a driver can quickly become discouraged if a January accident shuts him out of a safety initiative for the rest of the year. “This way, if you do get into an accident, you get right back in the program quickly.”

Bonus cheques should also be kept separate from traditional pay, he adds. “Then drivers [become] more aware of it.”

Consider issuing incentives just before Christmas, or the beginning of the school year, when extra cash will be particularly appreciated.

The same approach can be effective when looking to achieve other measurable targets, such as improved fuel economy.

“If you put a fuel economy incentive in place, and you pay half the savings to the drivers, then you’re money ahead and the driver’s money ahead,” he suggests.

A fixed schedule of incentives can also play a role in reducing driver turnover.

“One of the firms, they paid their new drivers two cents a mile less than drivers who had been around a while. They had a huge turnover in the first six months,” Barton says, referring to research in his study. But it then added a safety incentive that accumulated for six months before it was paid out, and the turnover rate dropped to 20% from a traditional level of 70%.

Another company combined an array of incentives, including driver appreciation days, along with training that showed managers how to treat drivers with respect. That fleet’s annual turnover dropped to 30% from 100%.

“If you improve driver retention, you’ll reduce your accident costs,” Barton adds. “I’m not talking the spectacular, fiery crash.” But a driver more aware of a route will be less likely to dent fenders, snap mirrors or jump curbs.

Fleets, meanwhile, will enjoy another benefit. “In order to pay out the incentives, you have to keep good records, and that’s one of the great bonuses of an incentive program,” Barton says.

Of course, a program’s launch will be smoothest if you’ve already established a “baseline” of statistics from which to measure results, but that isn’t always possible.

“It’s great if you can have the before stuff,” he says, “but if you think you have a problem, you’re not going to sit around three years and measure data.”

A copy of Incentive Programs for Enhancing Truck Safety and Productivity can be downloaded from http://www.safety-council.org/news/sc/1999/incentive.htm.

Winter is officially over and our second season is starting.  No, not spring, CONSTRUCTION!  It is another season of road construction here in the Chicago area and throughout the US.  Traffic tie-ups, slow downs and the infamous flagger person telling you to “Slow down or STOP (for about 10 - 20 minutes).

I have been a flagger instructor for about 3 years.  I have also taught the flagger instructor class, but driving around the city, I must be the worst trainer ever.  I see people:

• Using the emergency vehicle flag to direct traffic
• Standing in the middle of the street with a Slow/Stop sign directing two-way traffic
• Road construction people using their hands
• Road construction people without safety vests
• Construction people walking out into traffic to stop oncoming traffic to let a vehicle into or out of the construction site
• Many other dumb things

Road construction injuries are up every year.  When I teach the flagger class I always like to start with the students telling about the scary incidents that have happended to them, and there are many.  Yet as I drive out on the road, I seldom see a flagger doing it right.  If they use the Stop/Slow sign they do not use hand signals, or they don’t use the sign correctly.   Having less road construction injuries means we have to be better drivers in these areas, but also the contruction people have to be better safety people.

Back in Nov of 2006 I published this article.  Driving incidents are the number 1 cause of employee injury today, and with the weather we are currently having, I think it is important to revisit the article again. 

Winter Car Kit

According to the Federal Emergency Management Agency, about 70 percent of winter deaths related to snow and ice occur in automobiles. When driving in such conditions is necessary, the agency recommends traveling in daylight and not traveling alone, keeping others notified of your schedule, and staying on main roads. In addition to winterizing your vehicle mechanically and keeping its gas tank full, FEMA advises carrying the following items in the vehicle’s trunk:

• Shovel
• Windshield scraper
• Battery-powered radio
• Flashlight
• Extra batteries
• Water
• Snack food
• Mittens
• Hat
• Blanket
• Tow chain or rope
• Tire chains
• Bag of road salt and sand
• Fluorescent distress flag
• Booster cables
• Road maps
• Emergency flares
• Cell phone or two-way radio

Source: FEMA

It’s a beautiful fall day, crisp temperatures, leaves turning those beautiful shades of oranges, yellows and reds, and that touch of pumpkins in the air.  So what are safety managers thinking about?  They need to have all of this years training completed….soon.  They are going into the 4th quarter and need to have their budgets ready from next year.  They also need to make sure they have all of this years budget spent, so there is not too significant of a cut back for next year.

Here are some ideas that may help the process.  If you have not done all your training and have some money to spend, this is a great time to make sure it is complete.  OSHA, EPA, and DOT often first look at training records a when they come visiting. 

OSHA recommends and sometimes requires on-going training in a variety of areas. 
 ·  New employees and/or new polices and procedures require new training.
 ·  Changes in using or labeling of hazardous materials require training.
 ·  Making sure that people are re-certified in First Aid, CPR/AED. 
 ·  If you have HAZWOPER trained people, having an 8-hour refresher class.
 ·  Driver Safety Training.
 ·  Emergency Response Planning.

The US DOT requires Hazmat training if your organization ships hazardous materials by ground, air or ocean.  Employees involved in the shipping or receiving of hazardous materials MUST be trained every 3 years for ground transportation and every 2 years for air and/or ocean shipping.  Your employees require Hazmat training if your company manufacturers hazardous materials packaging,.  New employees must receive training within 90 days after employment. 
This training must include:
 1.  General Awareness Training
 2.  Function Specific Training
 3.  Safety Training
 4.  Security Awareness Training
 5.  In certain cases In-Depth Security Training

This site does not publish the fines that companies get when they are in violation of compliance.  However, a majority of these fines, lost work days, lost productivity and more, could have been avoided by spending money training the employees.

The Compliance Resource Center can do all this and more.  Whenever possible the training is customized to your organizations needs. 
HAVE A SAFE DAY!