ADTS: In The News

Reducing Loss Through A Fleet Safety Culture

Phil Moser
American Society of Safety Engineers
April 2002

What Is Your View Of Fleet Safety?

Many organizations employ large fleets of drivers for a variety of purposes, including sales, service, and maintenance. Some of the same organizations also have large groups of employees working with industrial equipment in a plant setting. However, they don’t always view safety in the same way for their employees working in these very different environments.

Most companies devote significant resources to train plant workers in Occupational Safety & Health Administration (OSHA) procedures and to keep their facilities in compliance with OSHA regulations. Yet, the same company may send hundreds or thousands of employees out onto the road without providing fleet safety training or education. As compared to the highly regulated plant setting, these drivers venture out into an uncontrolled driving environment – one in which vehicle crashes are all-too-frequent.

By understanding the high incidence of fleet crashes and their subsequent results, safety directors will begin to see why they must take an active role in establishing a fleet safety culture within their organizations. This paper provides practical recommendations for developing a successful fleet safety culture that will yield a strong return on the organization’s investment.

The Prevalence of Fleet Crashes

According to the National Highway Traffic Safety Administration (NHTSA), in the U.S. a motor vehicle crash occurs every five seconds; an injury crash occurs every 10 seconds; and a fatal crash occurs every 13 minutes. For the average driver, the odds of being involved in a vehicle collision during a lifetime are 1 in 15.

These statistics reflect the frequency of vehicle crashes and the likelihood of involvement for the average driver: someone who drivers 10,000 - 12,000 miles annually. However, many fleet drivers travel 15,000 - 20,000 miles annually, or more. Even if they don't log high mileage (which is typically the case for drivers in urban territories), they do spend a good portion of their workday in the vehicle. As they tend to spend much more time on the road, fleet drivers face much greater exposure to crashes than drivers in the general public.

In fact, data analysis by the U.S. Department of Labor, Bureau of Labor Statistics, has shown that fleet crashes cause more work-related deaths in the U.S. than any other single incident type. As illustrated in Exhibit 1, motor vehicle crashes were responsible for 31 percent of all worker fatalities in 2000 – causing nearly 1 in 3 work-related deaths. The next most frequent cause of worker fatalities – contact with objects and equipment – accounted for only about half as many fatalities.

Fleet vehicle crashes also play a leading role in the most costly worker injuries. Data from the Bureau of Labor Statistics reveals that the most expensive worker injury claims by far are attributable to fleet accidents.

A fleet vehicle crash impacts an organization on many levels. In addition to the property damage typically sustained, these accidents often result in personal injury, workers compensation claims, lost productivity and/or lost revenue, and other costly consequences. Since many companies self-insure their fleet vehicles and drivers, the organization bears these costs directly.

Of the many costs that result from a vehicle crash, the most significant tend to result from liability exposure. In our litigious society, the odds are good that a crash caused by a fleet driver – even a minor incident – will result in a lawsuit against the employer, with or without merit. The larger the corporation, the deeper the pockets will be perceived. And when companies place fleet drivers on the road without appropriate safety training, they can be found liable for “negligent entrustment.” As a case involving a well-known brokerage firm illustrated, even crashes that occur after business hours can be viewed as the employer’s responsibility. In this case, an employee allegedly ran a red light while talking on a cell phone and caused a crash that killed a motorcyclist. The family sued and the brokerage firm settled for $500,000 – even though the company didn’t own the car or the cell phone.

The key to reducing an organization’s vehicle crash rate and minimizing the subsequent high costs is to develop and sustain an effective fleet safety culture.

Creating A Fleet Safety Culture

Secure Senior Management Approval The first step in creating a fleet safety culture is to enlist the approval and support of senior management. Of course, you will need their budget approval for the safety initiatives you plan to pursue; in addition, they can set a tone for fleet safety through their words and actions.

Senior management will support a fleet safety initiative if they believe it will improve employee well being and generate cost savings. The former is easy to illustrate; demonstrating the latter may require more effort. It’s useful to develop various models that show the cost of vehicle crashes based on the company’s current accident rate and the potential savings from reducing that rate.

Develop A Fleet Safety Policy

Once senior management is on board, a crucial next step is to develop a written policy that sets a tone for fleet safety and documents your position on important fleet safety issues. The policy should be developed with the input of a cross-functional team – including the safety director, risk manager, fleet manager, and human resources manager – with the final approval of legal counsel.

An effective fleet safety policy should include several specifics at a minimum:

- The company’s right to deny employment to a job candidate based on his/her driving record, when the position requires driving.
- The company’s intention to check motor vehicle records, accident reports and other evidence of an employee’s driving experience on a regular basis. Ideally, the policy should state that these records will be checked at the employer’s will. This is typically permissible by law as long as you notify the employee or job candidate and secure his/her prior written consent. (It’s advisable to check with your legal counsel to ensure compliance with the U.S. Fair Credit Reporting Act and other state-specific laws). When screening job candidates, it’s efficient to obtain the driving record at the same time as you conduct other background checks.
- The criteria that would disqualify a job candidate from being hired – or qualify a current employee to be terminated – due to his/her driving record. The policy should clearly state the maximum number of moving violations, accidents or other incidents permitted. For current employees, the policy should also outline the penalties or interventions that will take place if a driver exceeds those thresholds.
- The organization’s position on the use of company vehicles by an employee’s spouse and or driver-age children.
- The employee’s responsibility to report any vehicle crashes to the company. This is vital, as some crashes aren’t automatically reported and therefore won’t show up on a motor vehicle report. A crash usually isn’t reportable unless there are injuries or fatalities or a vehicle must be towed from the scene. Requiring drivers to report all crashes will ensure that the company is aware of any incidents that occur, no matter how minor.

Once the policy is developed, it’s vital to communicate it broadly and regularly. For instance, it’s prudent to provide the policy to everyone involved in the hiring process, so they will be prepared to discuss it during interviews. This helps to minimize lost time pursuing candidates with poor driving records, while underscoring the importance of fleet safety at the outset. It’s also important to provide a copy of the policy to all fleet drivers at their time of hire and to distribute new versions whenever the policy is updated, both in print versions and electronically via email or the company Intranet.

Finally, the policy will only be effective if it is applied consistently across the entire organization, from the top down. All levels of managers should understand that they, as well as their direct reports, are expected to comply with the policy.

Address New Hire Risks With a policy in place, it’s now time to look at your fleet make-up and determine what measures you should take to reduce your specific fleet’s risk of vehicle crashes. Many organizations start by providing fleet safety training for all new hires and find this to be a very effective way to reduce their crash rates. That’s because new hires are statistically at much greater risk of a crash than tenured employees. In fact for all fleet drivers, the greatest likelihood of being involved in a crash occurs within the first 18 months on the job. The reason for new hires’ increased risk is the fact that they’re getting accustomed to many new elements – including a new job, assigned territory, customers, products, policies and even the vehicle itself. Since new hires are usually eager to perform well, they also tend to take on too much, which can lead to over-scheduling, rushing and crashes. Organizations that train their new hires as soon as possible – ideally as part of the initial employee orientation process – tend to experience the most significant reductions in their crash rates and the best return on investment. This approach reduces the risk quickly by providing the employee with practical safety information and techniques before he/she begins driving a company vehicle. Equally important, when the company presents fleet safety in the same context as corporate policies, product information, and other required training, it elevates the importance of fleet safety in the new hire’s mind and reinforces the company’s safety culture. Address High-Risk Drivers Another important segment of your fleet that will require targeted attention is high-risk drivers. When it comes to fleet drivers, the traditional 80/20 rule applies: 80 percent of the vehicle crashes are generally caused by 20 percent of the drivers, as Exhibit 4 illustrates. Identifying those high-risk drivers and providing the most appropriate training and intervention will have a significant impact on your organization’s fleet crash rate.

To identify the high-risk drivers in your fleet, you need to develop a risk profile for each driver. Many organizations use a combination of moving violations and accidents to arrive at an objective assessment of their drivers’ records. This involves identifying the specific driving incidents you will track and the points you will assign to each – with the number of points increasing with the severity of the incident. For example, rather than assign a standard number of points for “speeding,” it’s more effective to assign fewer points to a driver traveling 10 mph over the posted speed limit than a driver traveling 30 mph over the limit. It’s also a common practice to assess higher points for repeat violations (such as three speeding tickets in a 12-month period). Regardless of the specific point system used, the company should establish a specific timeframe for which the driver’s record will be reviewed; a reasonable timeframe is typically the previous two or three years.

Once a point system is developed, it’s useful to create several levels of risk and assign drivers to a particular level based on the total number of points accumulated. From there, the company can tailor appropriate fleet safety initiatives for each group. This is an ideal way to allocate your fleet safety resources effectively and efficiently.

For Level 1 drivers, those with the lowest risk of a crash, consider using cost-effective techniques that will reinforce fleet safety and help these drivers maintain a good safety record. Delivery vehicles such as CD-ROM make it practical to provide driver safety reinforcement to lower-risk drivers on a periodic basis. When paired with a test, this approach not only documents the company’s efforts to reduce the driver’s risk but also measures retention of key concepts taught in the training. Driver safety manuals and videotapes also can be used effectively at this level to deliver safety information on both topical and seasonal driving issues.

For Level 2 drivers, those with slightly more severe or frequent incidents, a more aggressive approach will be needed to reduce the risk and minimize future crashes. One of the best ways to address drivers in this group is through a safety training program that combines classroom lecture with hands-on, behind-the-wheel training. This approach accomplishes two important objectives: it educates drivers about the importance of fleet safety and teaches them practical techniques they can apply in their daily travels. By providing the opportunity to practice their newly learned skills in a real-world setting, the company will greatly improve drivers’ retention of important safety concepts.

Level 3 drivers, those who demonstrate a pattern of frequent crashes and severe violations, will require more personalized attention to erase their high-risk driving habits. It can be very effective to train these drivers on a one-to-one basis, allocating a full day of individualized attention to their specific issues. This technique helps to hone in on the cause of their driving problems, while demonstrating the severity of the risk and the company’s commitment to reducing it. It also allows the company to document the extent of its efforts to keep this driver safe and minimize his/her risk of a vehicle crash. Encourage Middle Management Ownership The middle managers your fleet drivers report to can literally “make or break” a fleet safety initiative. Just as they set the tone for industrial safety, middle managers can set the right tone and demonstrate their support for fleet safety. Conversely, if managers are prone to poor driving themselves or push their employees to over-schedule and rush, the fleet crash rate will reflect that. It’s not uncommon for companies to see a correlation between a region’s vehicle crash rate and the regional manager’s view of fleet safety. Often, when a particular manager is assigned to a new geographical area, the former region’s crash rate decreases and the new region’s rate increases.

One of the best ways to secure managers’ buy-in is to involve them in the same driver safety programs their direct reports will experience. It’s extremely valuable to include them as participants in classroom and behind-the-wheel programs – ideally before their own employees do the same. This first-hand experience will improve their own driving while helping them to convey a positive attitude about the program. It’s also vital to include all managers in any motor vehicle record checks you conduct. If a manager is identified as high-risk, he/she should receive the same safety intervention as any other fleet driver. Lastly, consider teaching managers how to conduct an annual “ride along.” This involves riding with a fleet driver during a normal business day and observing his/her skills and habits on the road. With the right training, middle managers can learn how to assess their drivers’ skills, pinpoint problems and recommend improvements.

Sustaining A Fleet Safety Culture

To be effective over the long term, a fleet safety culture cannot take a “one and done” approach. Even organizations that have achieved significant reductions in their vehicle crash rates have witnessed those rates creep up again when they failed to make fleet safety an important part of the company’s culture. One reason is the inevitable employee turnover your fleet will experience. Another is the fact that a driver’s daily job responsibilities will naturally begin to overshadow the skills and knowledge gained at the start of the program.

Sustaining improvements in both the individual’s fleet safety and the company’s vehicle crash rates requires a commitment to maintain the safety culture long after the first training session is complete. Many approaches can be used to keep the fleet safety culture alive and at work in an organization. One tactic is to distribute regular reminders about driver safety through company newsletters, bulletins, e-mail messages or postings on an internal Intranet site. These reminders should be concise, educational, and practical in nature. Another effective vehicle is the use of mini training sessions or videotapes in the context of the meetings your fleet drivers are already scheduled to attend – such as a regional or national gathering. This approach allows you to build in periodic reminders cost-effectively, while emphasizing the importance of fleet safety within your culture. From a content standpoint, any program of periodic refreshers should deliver two equally important types of information: topical issues (for instance, new cell phone legislation) and seasonal issues (such as winter driving tips or safety measures for back-to-school season).

The high incidence of vehicle crashes and the subsequent high costs makes a fleet safety culture critical for any organization that employs fleet drivers. By taking a proactive, practical approach to developing and sustaining a fleet safety culture, organizations can greatly improve both their employees’ well being and the company’s bottom line. This paper was originally published by the American Society of Safety Engineers in Proceedings of the 2002 ASSE Professional Development Conference, Nashville, Tennessee.