Safe Driver Fast Facts.
The Market: The transportation industry is divided into two main segments:
For-Hire Carriers, they transport other peoples' goods and their revenue is derived from trucking operations. Examples include UPS, J. B. Hunt, Roadway.
Private Carriers: trucking is a business unit; it is not how they generate revenue. Examples include Frito Lay, Coca-Cola, Nabisco. Private fleets are the largest segment of the trucking industry (82% of medium to heavy trucks registered).
- million plus Intra and Interstate Drivers
- 3 million Interstate Drivers
- Trucking Services Industry -- ranks #5 in Injury & lost work time
- Truck Driver occupation -- ranks #1 in Injury & lost work time
- 400,000 large truck accidents per year/5300 deaths
Driver Profile:
Average income: Private Carriers -$40,000
For Hire - $35,000
Gender: primarily male
Median age: 35
Married: 64% Children: 51%
WorkWeek: 50%-60-70 hrs, 25% -70+hrs
Contacts: Depts - Safety Dept, Risk Mgmt, Logistics
Titles: Vice-President of Safety, Safety Mgr.,
Safety Specialist, National Group Manager-Fleet,
DOT (Department of Transportation) Manager,
Regional Safety Manager
Budgeting: Generally, 5-8 percent of anticipated accident reduction. The budget is allocated as follows: 70-75% Awards/ Incentives, 20% Communication, and 5-15% Administration
Program Objectives:
- Reduce accident expenses
- Reduce Insurance Premiums
- Reduce lost productivity
- Improve customer/public perception
Program Tax Advantage:
In 1986, the government recognized the importance of positive reinforcement by exempting the value of Service and Safety awards from the incomes of individual employees and making the company investment in these programs tax deductible under specific guidelines.
To be free of taxes as described these programs must:
- Fall into a qualified plan that does not discriminate in favor of highly compensated employees.
- Be items of tangible personal property awarded as part of a meaningful presentation.
- Fall under an average award cost of $400 with an upper limit of $1,600. Awards over $1,600 are taxable to the recipient for the amount above $1,600.
- Service awards may be given every five years beginning at five years of service.
- Safety awards must be given to fewer than 10% of eligible employees. Management, administrative, clerical and professional employees do not qualify.
Safe Driver Program Overview
Rationale: Safe Driver Programs are generally a part of a larger Safety Program, which may, itself, be part of an organizational Environment, Health and Safety (EHS) initiative.
The catalyst for Safe Driver Programs is Dollars & Cents and the objective is Prevention through behavior change. Fatalities may cost an organization upward of $2,000,000/incident, Injuries $100,000/incident and Property Damage $7000/incident. Less measurable is the public and employee perception of the organization following a major incident.
Program Design: A well-designed Safe Driver Program encompasses both a recognition and reward/incentive component. Both the recognition and the reward/incentive components are centered on events. The recognition component is most often Milestone driven with Miles Driven (1million, 2 million etc) and/or Time Passed (1 year, 3 year, 5 year, 10 year etc) the primary events.
Supplementing and supporting these recognition events are reward/incentive opportunities such as Champion Driver, Good Samaritan, Summer Campaign (highest accident season) and National Truck Driver Appreciation Week which occurs each August.
Program Content: The make-up of a Safe Driver Program is necessarily based on the most effective motivation for a unique, and often diverse, population. There are three key elements of program content;
- the Awards/Rewards themselves ,
- the Category of the awards/incentives
- the Need being satisfied.
The Category of the prize may be Compensation (bonus) Incentive (to focus activity and behavior) and Recognition, (to sustain and enhance appropriate behaviors and results). Safe Driver Programs almost always include some of both.
For more information, contact RCB Awards at 1-800-929-9110.
