Compliance
is generally looked on as part of corporate governance, especially within the
banking and finance sector. What I would like to share with you is another area
of compliance that is regularly overlooked but can provide significant
dividends for any organisation when correctly managed.
SME
business leaders are constantly looking for ways to grow their business,
especially as their margins can be much smaller than large enterprises. The
better the margin, the more money that can be re-invested back into the
business to grow it, and reward its employees and shareholders.
Better
margins come from increased sales, increased efficiencies, or a combination of
the two.
If
you operate a business that needs employees to ride or drive for work, you
already have an untapped resource within your organisation that has the
potential to deliver efficiencies and improve margins. By tightening up
compliance within existing health and safety at work legislation you not only
reduce risk to drivers, directors and the business itself, but you also have
the potential to add significantly to your bottom line profitability.
Many
small business owners aren’t even aware they need to have a driving for work
policy, and for those that do, the policy is often incomplete, or not being
managed and implemented properly across the business. This means that
occupational road risk – the risk that one of your drivers might have a crash
while driving for work – is not being managed and is potentially putting
directors, reputations and the very business itself at risk. Not only that, but
many of the costs associated with driving for work are being overlooked.
Poor
management of those who drive for work can lead to large and unnecessary
increases in operational expenditure for vehicle repairs, routine servicing and
maintenance, fuel, tyres and fleet insurance as well as mileage claims from
those that use their own car for work. As an example, poor driving can double
the spend on tyres and triple the budget required for servicing and
maintenance, while poorly managed fleets can pay five times the cost per
vehicle for fleet insurance. Companies that monitor and manage their fleet
activity closely, even when they only have a small number of vehicles,
therefore have the opportunity to realise some very worthwhile reductions in
all these costs.
Under
UK health and safety law, companies must risk assess all their business
activities to ensure they don’t put employees or anyone else at risk, and this
includes any driving activities. Directors must then develop policies that
reduce those risks as much as possible. A formal written driving for work
policy is therefore essential in explaining the standards that are expected of
those in your company who drive and ride for work.
A
driving for work policy also contributes to overall employee well-being,
ensuring that workers who drive and ride for work are kept safe and are looked
after at all times. Employees who spend a lot of solitary time on the road –
particularly delivery drivers – are prone to stress, fatigue and other mental
health issues. High profile campaigns such as Heads Together, whose patrons are
the Duke and Duchess of Cornwall and the Duke of Sussex, and the Campaign Against
Living Miserably (CALM), have given a voice to a previously undiscussed topic.
This is a positive step that will contribute to reducing occupational road
risk.
“What
does it cost to develop and implement a driving for work policy?” is often the
first question we hear from SME business leaders. That’s the easy part – it
needn’t cost anything. It can be done internally by simply understanding the
risks and setting out work practices that minimise those risks. A good starting
point is Driving for Better Business, a free government backed Highways England
programme. Aligned to the seven-step process, organisations have access to free
guides and resources to help them with this vital area of risk management,
including advice on what to include in your policy.
Hundreds
of organisations across the country have signed up to the Driving for Better
Business programme. Those fleets collectively manage almost half a million
drivers and over 300,000 vehicles – figures which are growing every week as new
firms sign up.
Ultimately,
a good driving for work policy helps ensure that at a minimum, organisations
are compliant with all relevant legislation and guidelines. Many SMEs find that
improving how they manage their drivers and vehicles improves business
efficiency, reduces business risk and can significantly improve business
profitability.