Current Articles

February 2009, Work Truck - Feature

Reducing Risk with Driver Assessment Programs

By Staff

ARTICLE TOOLS        | E-MailPrint Subscribe

Sometimes, amid the day-to-day activities all fleet managers must face, it seems much of what is done is entirely reactive. "Closing the barn door after the horse gets out" can be frustrating and counter-productive; however, experienced fleet managers know actions can be taken to keep that door closed in the first place.

Giving an employee the keys to a company truck entails risk — the risk that he or she won’t operate the vehicle in a safe manner, take proper care of it, or follow company policy and procedure. Managing these risks begins before the driver is hired and is an ongoing process that can provide substantial savings and cost avoidance.

What are the Risks?

The risks associated with the provision of company trucks to employees go beyond legal issues. Before discussing what assessments can be performed, it is first necessary to define the risks. They can be placed under several categories:

  • Financial. The most obvious risk (though not necessarily the most serious) is financial. Placing employees in a company asset costing tens of thousands of dollars, which generates thousands of dollars of expense during its time in service, carries with it substantial financial risk.
  • Safety. The safety of the driver and the general public is at stake every time a fleet driver gets behind the wheel.
  • Liability. Placing an employee in a company truck also places the company in a position of responsibility for all the driver’s actions. A company’s reputation in the community and industry is one of its most important assets.

Failure to properly assess these risks carries the potential for serious costs. The fleet manager is responsible for taking the necessary steps to mitigate them.

Managing risk begins before drivers are even hired and continues until the employee not only is no longer a driver (for whatever reason), but also until actions he or she may have taken have played themselves out to a conclusion. Everything an employee does while on the job (and sometimes off the job) reflects upon the company. Many activities incur costs that can be controlled and, in some cases, eliminated if the fleet manager understands these risks and how to manage them.

Where to Begin

As with any broad-based program, proper approvals must be obtained before launching the project. Input from other departments and disciplines is critical for the success of driver assessment.

COMMENT ON THIS STORY

Please log in to write comment.

New user? Sign up for new membership now!

E-NEWSLETTER

Authoritative & Targeted! We offer e-newsletters that deliver targeted news and information for the entire fleet industry. Subscribe to one or all of them...they're FREE. SUBSCRIBE!

View the latest eNews WEEKLY

ARTICLE ARCHIVE SEARCH

Sponsored Links

Flexible & Powerful Fleet Software
Chevin fleet management software - Where flexibility comes standard. Solutions for all types of vehicle and transport operations. Click Here.


BLOG

Fleets Reassess Amortization Rates

By Mike Antich
In the commercial fleet industry, the most common amortization rate used for establishing a depreciation reserve is 50 months. Recently, some major fleets extended amortization rates on new-vehicle orders.

Maintenance Costs Up Due to Frequency of Repair Increases

By Mike Antich
Maintenance costs increased in 2009 due to higher cost of replacement tires, PM oil changes, and labor rates. However, the biggest factor was widespread deferment of vehicle replacement, resulting in the operation of older units.

Short-Term Cost-Cutting Strategies Backfire in the Long-Run

By Mike Antich

Morgan Stanley & Goldman Sachs Forecast $100-per-Barrel Oil in 2011

By Mike Antich

Fleet Job Finder


Save time and money. Search for fleet jobs. Advance your career. Access our career coaching services

Job Seekers

  Post your resume & manage your job search.

Employers

  Post jobs & search top quality resumes.

Featured Jobs

STORE

$5.00

Work Truck - November/December 2009

In This Issue:
Here are the Highlights

  • Fleets Deploy Kenworth T370 Hybrid As Green Workhorse
  • Green Initiatives Flourish in Commercial Truck Fleets
  • Uncertainty Affects Truck Accident Management Costs
    And much more…