Driver Incentives v Disincentives as Tools for Accident Reduction

Many fleets will support an accident reduction strategy with either driver incentive schemes or penalties for failing to meet new targets.  So just how effective are such measures in reducing claims and which approach works best?

A Policy for Dishonesty?

Incentives and disincentives can both have the effect of driving claims underground if they are too heavy-handed. By financially rewarding collision free driving you may encourage drivers to stop reporting small bumps. Drivers who face financial penalties for accident claims are arguably even more likely to withhold information.

Carrots and Sticks

The decision fleets must make is whether their drivers will be more likely to abide by culture change and act on the knowledge gained through training if there is a carrot in front of them or a stick behind. At RVM we believe carrots often have a greater influence on driver behaviour because they accentuate the positive but we also know that to be truly effective drivers need to understand why they are being incentivised. Once they grasp the business reasons and safety benefits of accident reduction they will be motivated by more than just the short term prize.

The Right Carrot

Like all incentives, driver rewards must be meaningful or they will simply be ignored. Popular incentives include cash bonuses, vouchers, eligibility for a vehicle upgrade or just recognition of good behaviour with the potential for a “driver of the year” badge of honour. In many cases, introducing an element of competition amongst employees can work extremely well and most fleets find that longer term goals are more successful and make it easier to measure improvements over time.

Act Now

Driver incentives not only help to set a pattern of positive behaviour, they also encourage employees to see improvement as a goal and to share their successes with one another. This in itself helps to perpetuate good driving principles. However, incentive schemes need to be designed to fit the fleet and whereas a leader table may work in a fleet where all drivers perform similar roles, other organisations may need a different system with rewards designed to match specific roles or achievements.

Click here if you need help designing an incentive scheme for your fleet?  

or Call RVM today on 0113224 8888 to discuss in more detail.