12 Ways to Improve Your Fleets Safety Record

Steve and his friend Rob were out on the town having a good time. Steve is a sales representative for Acme Distribution and drives a company car. In a moment of generosity, Steve lends Rob the company car. A few hours later, Rob (miraculously) is standing on the shoulder of the highway, with the car in a ditch. The company car has just rolled over three times and caught on fire. The 1999 Taurus was salvaged for $300. Steve now owes the company $18,505 (less $300) for lending out the company vehicle to Rob for one night. Repayment is difficult because Steve lost his job This is a sad, but true story, and one that can make a fleet department sit up and take notice. The statistics are staggering. Traffic accidents are the No. 1 job-related cause of deaths. According to Michael Baldwin, Northwest Region program manager for the National Highway Traffic Safety Administration (NHTSA), Americans spend more than $160 billion a year on traffic accidents. An accident during company time resulting in injuries can cost more than $24,000. Off the clock it can cost more than $18,000. With statistics like that and two years experience under her belt as fleet manager, Linda Jennings at Van Waters & Rogers decided it was time to reevaluate the company’s safety program. Was the Van Waters & Rogers fleet department doing enough to keep drivers safe and costs down? What, specifically, could the department do to increase safety awareness, prevent accidents and injuries, plus save time and money? To find out, Jennings examined safety materials and websites. But what were other organizations really doing? To find out, Jennings also surveyed dozens of companies with similar fleets, consisting primarily of sedans, light trucks, SUVs, and vans. It wasn’t surprising to find that almost 100 percent of the companies surveyed have a formal safety program. Seventy-eight percent use an in-house safety program, 3 percent outsource their program, and 19 percent use a combination of both. However, two companies indicated they did not have any kind of safety program in place. One fleet administrator with a fleet of 500 vehicles said, "Management doesn’t think about it. We haven’t had any serious injuries or accidents and they think the rates and incidents are low, so there really isn’t any discussion about it." Mike Baldwin of the National Highway Traffic and Safety Administration (NHTSA) understands how a company can arrive at this unfortunate conclusion. "Safety is intangible. You’re selling an idea to management. It’s the absence of something happening. You have to make safety an ongoing marketing effort," he says. Fortunately, most companies are more proactive about their safety programs and offer one or more ways to get the message across to their drivers. Almost two-thirds of the companies surveyed provide safety training to all new drivers. About one-third of the companies implemented yearly training and one-third gave additional training to drivers after a traffic accident or other safety violation.

What Programs are Used and What Works?

Chart 1 on page 74 shows a list of safety programs and the percentage of the companies that use them, according to the survey. Respondents also rated the programs that they thought were most effective. 1.Motor Vehicle Record (MVR) Checks MVR checks are run by almost 90 percent of the companies surveyed. They’re a relatively inexpensive method of keeping track of drivers. In most cases, companies run the MVR before hiring an employee who will be eligible for a company car. If the applicant has a poor driving record, or DUI/DWI conviction, he or she is not hired. Most organizations run MVRs once or twice a year and more frequently for high-risk drivers who have had traffic tickets or a DUI/DWI. 2. Videos: Quality Can Vary, So Choose Carefully Videos are a popular way to disseminate safety information because of the ease of administration and the ability to administer pre-and post-tests. There are a variety of videos in the marketplace and the quality varies considerably, so make sure you view several before choosing. Jackie Barrett, fleet manager of Valspar in Minneapolis, manages about 450 vehicles for her company’s paint and coatings business. She uses a safety video produced by the National Safety Council. She chose the National Safety Council’s video because Valspar has branches located throughout the United States and she wanted training that was consistent. 3. Behind-the-Wheel Training: Many Methods Used by Fleets Several companies surveyed mentioned behind-the-wheel training as an effective safety tool for their drivers. Because of the expense, this kind of training is more frequently used for drivers with a bad driving record. One company requires behind-the-wheel training for drivers after three preventable accidents or a DUI. Some companies pay for the training, while others require the driver to attend state-run training at their own expense. Some organizations conduct training by renting a parking lot and contracting with a driving instructor. Ashland Chemical uses the Smith System Inc. where the company furnishes the materials and sends out trainers to train on-site personnel in driver instruction. B. Braun Medical Inc. in Bethlehem, PA, uses Smith for training at hire-in and for refresher courses. Linda Binde, who is the fleet supervisor of more than 300 vehicles at B. Braun Medical, also administers behind-the-wheel training after accidents. For the first preventable accident, drivers must have classroom training. After the second, they pay the deductible costs, have classroom and behind-the-wheel training. If there is a third preventable accident, the company can take away the vehicle. 4. Rewards & Incentives Can Help Prevent Accidents Companies rated reward and incentive programs high in deterring accidents and in increasing safety awareness. Programs and criteria vary – this is an area where your company can be creative and have some fun. One organization recognizes drivers for no accidents or tickets, and a clean, well-maintained vehicle for two consecutive years. The reward: $100. Another company uses a point system whereby drivers earn a day off for safe driving after 25,000 miles without a traffic citation or an accident. Jim Anselmi, director of fleet and travel at Lorillard Tobacco Company in Greensboro, NC, uses Bruton Marketing to administer Lorillard’s reward program. The initial criteria is the absence of avoidable accidents for five years. Drivers who meet this criteria can choose awards from a gift catalog. Barrett says Valspar awards drivers in 5- , 10- , 15- , 20- , and 25-year increments. The manager presents drivers with a plaque and a U.S. savings bond. They also have an annual safety drawing for airline tickets for those drivers who are accident-free. 5. Newsletters: A Popular Way of Disseminating Information Newsletters or e-mails are popular ways of disseminating safety information. Most newsletters are sent quarterly. Anselmi likes to include seasonal safety items, such as how to drive in ice and snow, or focus on recurring kinds of accidents that drivers are experiencing, like backing up. He also sends a token gift along with the newsletter – the key chain, pen, or other promotional item helps to remind drivers of safety. Try to keep your newsletter to one or two pages. Drivers will be more likely to read them if the material is condensed. Some topics to cover in the newsletter include:

• Cell phones.
• Road rage.
• Defensive driving.
• The value of a company vehicle.
• Tire maintenance.
• Antilock braking systems (ABS).
• Seat belt use.
• Driving in inclement weather conditions.

6. Seat Belt Campaigns: Zero Tolerance of Non-Use NHTSA estimates seat belts save almost 10,000 lives in America each year. Barrett enforces a mandatory seat belt program. "If they’re not wearing their seat belt, they get a warning the first time. The second time, the car is pulled. That’s not acceptable," she says. 7. Graded Tests: Some Companies Require Them Tests are typically used in conjunction with a video or seminar. Some companies require written tests once a year. 8. Driver-signed Agreements Can Save Grief One-third of the companies that responded to the survey required their drivers to sign an agreement regarding use of their company vehicle. Here are some elements to include in the agreement:

• Safety rules.
• Use of the car – by whom.
• Maintenance/cleanliness of the vehicle.
• Terms and eligibility.
• Ordering and replacement procedures.
• Driver-paid options policies.
• Delivery and acceptance responsibilities.
• Accident procedures.
• Disposal methods.
• Personal use charges and responsibilities.

A signed agreement spelling out employee responsibilities can save management grief later on down the road. 9. Drivers Pay for Avoidable Accidents Paula Bucklad has worked in fleet for 23 years and currently is the fleet supervisor at HJ Heinz in Pittsburgh, PA. She runs a fleet of 750 vehicles, consisting predominantly of sales vehicles. A major component of the safety program at Heinz is to assess accident fees to drivers at fault. "I’ve found you can administer all the programs you want, but when you start hitting their pocketbooks, the accidents are cut," says Bucklad. Drivers pay a $500 deductible, just as they would on personal auto insurance when they have an accident. The policy applies to business and personal use of the company vehicle. Eighty percent of the companies surveyed allow drivers personal use of the vehicles, which has an impact on the number and frequency of accidents. Bucklad believes this program has cut down on the number of accidents. The benefits are twofold – the safety factor has increased and the costs have decreased. Along with fewer accidents, there is a decrease in personal mileage, from 25 percent to 15 percent of a driver’s total yearly mileage. This means a decrease in fuel costs and wear and tear on the vehicle. "Drivers think twice before allowing a family member to drive their company car when they consider our accident policy," says Bucklad. Cars are not turned over as quickly because mileage is lower without the additional personal miles put on the vehicle. To ensure drivers are complying with reporting vehicle damage, condition reports are conducted twice a year and signed by the line manager. 10. Education Can Prevent Driving-Under-the-Influence Incidents Barrett of Valspar says chances are the employee will lose his or her job if convicted of a DUI/DWI. "My job as fleet manager is to minimize risk," Barrett said. "If they get their license back, they have to use their own car and are reimbursed 31 cents per mile up to 15,000 per year." Using their personal vehicle puts the company at less risk. Another company uses a point system. If an employee accrues 14 points, he or she is terminated. A DUI gets you 12 points. Education is the primary weapon to combat DUIs. Companies use videos, newsletter information and special pamphlets to distribute to their drivers. 11. Meetings, Lectures, & Work- shops Can Have Impact Baldwin of NHTSA suggests having an emergency medical technician come in and speak. "They’re closest to the real thing. It can have an impact on your drivers," he says. A few of the companies surveyed indicated they have monthly meetings for their drivers where they give some kind of safety instruction. 12. Consider Bringing in Help From the Outside Look at your safety program from every angle, even if that means bringing in outside help. Barrett recently had a safety audit performed by the Minnesota Safety Council. The Council evaluated the types of accidents, times they occurred, age of the drivers, and other factors. "We wanted an outside, objective view," she said. "It may be expensive, but it’s cheaper than an accident. A fender costs $2,000 to $3,000." Kathleen Schultz is fleet administrator at Van Waters & Rogers in Kirkland, WA, where she runs a 450-vehicle fleet.