A Driver Incentive Program That Works
Drivers and their performance are vital aspects of every trucking company success. That is why it is essential to build a culture that supports and recognizes safe driver performance. The best way to do so is by creating a safe and easy-to-understand driver incentive program.
Why should I have a Driver Incentive Program?
Trucking companies with employee incentive programs have:
- Reduced safety collisions;
- Low driver turnover rate;
- Better performance;
- Lowered operational costs.
The common way to lower operational costs is by using incentive programs to increase safety, decrease fuel consumption, and/or improve driver behaviours.
How it Works
The reason why an incentive program works is that it motivates drivers to improve personal performance, which ultimately improves the effectiveness of the organization. There are a few steps to follow when creating a driver incentive program:
- Ensure the goals you want to achieve are specific, measurable, and attainable; for example, lower idle time by 50%.
- Identify measurable key performance indicators that drivers can control. Make sure the KPIs you selected will influence your stated goals.
- Communicate and explain why this performance program exists and why it is important to the company and the drivers to get good results for those KPIs. Usually, this aligns with the company’s mission and vision.
- Promote a sense of fairness and be consistent.
Evaluate the results of the program and adjust using feedback from staff and drivers.
Example of an incentive program
You want to decrease the fuel consumption of your trucks and as your measurable KPIs, you choose Idling time, Harsh braking, Speeding, and Drive RPM. If you have an ELD or a telematic device like Navistream, you can use driver data to compare drivers based on their KPI results. This picture shows an example of the report you can use:
By using this performance report fleet managers can see all the details of driver trips and the records of all the KPI events that were scored on. Encourage drivers to access their scores online to see their performance and understand what KPIs they are scoring well on and what KPIs they need to improve on. By having a continuous feedback loop, fleet managers can improve the effectiveness of the incentive program.
Streamline Transportation Technologies Inc., an Arrow Company, is a leading provider of fleet management solutions for the transportation industry. Streamline combines telematics with advanced wireless and vehicle automation technologies to make vehicles safer, cleaner, and more productive. Streamline offers three major core products; Navistream™, an ELD and telematics platform, NaviLink®, an IoT vehicle gateway and active control system, and Degama, a Transportation Management Solution (TMS). The integration of the three platforms allows Streamline to offer a complete package of fleet solutions, customizable to any fleet size. For more information, visit stti.com.