A fleet cost reduction program goes straight to the corporate bottom line. If a company operates at a 10% annual net profit margin, reducing annual fleet expenses by $100,000 is the equivalent of generating $1 million in sales. Although fleet managers manage hundreds of thousands to tens of millions of dollars in corporate assets, only half are incentivized to achieve targeted performance goals. I advocate incentivization should be a universal best practice extended to all fleet managers.
Effective Metrics for Rewarding Positive Driving
The use of incentives may be a productive part of a well-rounded and well-executed fleet driver safety program, but it should never be used as a shortcut to deliver results when underlying practices may be incomplete.