Is your attempt at saving money actually costing you?

That is an interesting headline, but it is a mistake we see so often when organisations drop things they deem as a ‘nice to have’ to save some money they may not see the real costs of this decision.

For instance, over the past 12 months we saw a trend of dropping the rollout of driver training to workers, it was one of the first things to go, and given 2020 was a tough year on everyone, it may have been survival instincts that kicked in.

But what are the costs to this attempt at saving money?

When we look at cost we need to take into account what is at stake. Staying on the driver training topic for instance, the cost of NOT delivering driver training could result in vehicle damage, workers comp claims, insurance premium increases and at the most extreme a coronial inquest. This doesn’t for a moment also mention the cost to the image of the company or potential loss of business as a result of a traumatic and high exposure crash.

Take trucking brand Cootes for example, back in 2014 after a series of incidents they attracted a lot of attention from the likes of RMS, Police and of course the media. That attention saw 222 charges laid with 86 being for safety breaches, resulting in 40 vehicles being taken off the road. They also had a significant fatal crash in the same year that attracted a further $50,250.00 in fines and 67 road safety charges being laid.

The company needed a restructure at a cost of $47million dollars and a staff shedding of 540. Ultimately these incidents led to the demise of the company, but not before a lot of trauma and disruption for their clients and staff.

Now this wasn’t a result of driver training as such, but it very well could have been, the moment you have workers representing you out on the road you take this risk onboard.

On the other hand, a client we directly worked with dropped their incidents by 38% after implementing training to their staff. That drop in incidents had a positive effect on their insurance premium, worker moral, local reputation and cost of repairing their vehicles.

Another company that we do regular work for has no major incidents and just minor issues that are part of running a substantial fleet. Why is that the case? No incidents? Well, they have conducted a rotation of continuous driver training for many years and therefore have a very good risk score in comparison to other like for like fleets.

This has a direct positive result on the bottom line, and while we know there is a cost to conduct the training, the savings far outweigh the expenditure. Not only this, but their drivers are also more efficient, using less fuel and average lower wear and tear on the motor vehicles.

Add this to the fact they have no injuries recorded from motor vehicle incidents and you have a perfect storm for risk reduction and cost saving.

So ask yourself this question, is your lack of training and presumed cost saving, actually costing you more than what it is saving?

If you aren’t sure, we can do an audit of your driver safety situation and give you an honest appraisal of where you stand. Not to mention if you run telematics, then we can actually look at your data and tell you where that can be improved also.

Just remember Telematics are not the final solution to driver safety, they are just one tool in your safety landscape. They do not close the loop on driver safety, despite their claims to do so.

Investing in your team has substantial benefits to your brand and your bottom line.

Until next time. STC Education team.

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram