Incentives for Good Drivers

Everyone knows that collecting tickets for traffic violations is a bad idea and risking damaging your vehicle in an accident by dangerous driving habits even worse, but for some the temptation to misbehave is too great.

However, some employers are now offering incentives for their employees to become better drivers and refrain from being charged with offences as they are recognising the potential gains for their business.

For firms whose business revolves around driving it is easy to see why the individual’s private driving habits could be a problem for their work life. In one study, more than one in two employers asked said they thought their younger drivers in particular had not had sufficient training and the basic driving test was not adequate to ensure their knowledge and safety on the road.

Racking up points on insurance means employers end up paying more in insurance premiums even if the penalty is for a relatively trivial offence. Other direct costs also include a greater fuel bill for drivers overly fond of the accelerator plus wear and tear on the vehicle for those who drive erratically and are forced to brake sharply on a regular basis. And of course, in the worst case scenario, repair or replacement costs for a damaged vehicle in the event that a collision occurs.

However, the obvious costs were not the only cost–savings that an employer could enjoy by persuading its staff to improve their driving habits.

Some research has shown that drivers who are safer on the road have a better attendance record at work and better productivity whilst they were there. This means a lower overtime bill for the firm who are forced to pay other workers to cover the missing employee or as an extreme, even the cost of replacing an individual and retraining a new starter. For employers who record any accidents their employer suffers either whilst travelling to work or during the day, a safe driving policy would mean a reduced administrative burden. This means that even businesses who do not employ staff in a specific driving capacity could find a financial benefit to incentivising employees to drive in a more lawful way.

Whilst some firms operate a tough disciplinary process for those who commit offences whilst on the road, a far more effective route is the introduction of an incentive plan. This involves providing one of a range of benefits on a regular basis whilst the driver retains a clean licence and is not found to be at fault for any accidents. Some of the benefits offered by employers include either monetary rewards, or for those not keen to pay out, offering exclusive privileges which staff would value works out equally well. Any misdemeanour results in either no further payouts or the privileges being stripped immediately.

Whilst some employers may baulk at the thought of spending money saving money is the outcome for most businesses who invest in a safe driver initiative. One study showed that savings equated to three times as much as the money spent incentivising motorists to be better on the road. And for those more motivated by altruistic results, one less aggressive driver on the road makes it nicer for everyone to drive.

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This page was last updated
Wednesday, 14-Dec-2011

Incentives for Good Drivers