After working with hundreds of Non-Emergency Medical Transportation (NEMT) companies over the years, I have come to find that only a handful offer some kind of program incentivizing safe driving practices for drivers as part of their overall loss control management plan.
Why You Should Incentivize Safe Driving
You may feel as if these programs are too much of an hassle or expense, but in the long run, a driver incentive program could help your company’s loss history (claims activity) trend in a more favorable direction. This ultimately helps your company become more appealing to insurance carriers, potentially allowing for more cost competitive options.
What Are They Designed to Do
Driver incentive programs are designed to promote safe driving, not necessarily “speedy delivery” of passengers. While being on time is important for both your client and the company’s schedule, speeding and hasty decision making are the result of many claims, such as rear-end collisions, improper securement of passengers, etc.
Simple Rewards, Lasting Impact
Rewarding exemplary performance on a monthly, quarterly, or annual basis will not only help lower a company’s claims activity and subsequent premium rates, but will also help boost driver morale and reduce employee turn-over. In my experience with these programs, drivers enjoy the positive reinforcement and want to continue to perform well for their employer as a result. Moreover, it’s nice to feel valued by your employer, and in a time where turnover is high, making your employees feel valued is of great importance. These rewards could range from gift cards to a local restaurant, merchant, Visa gift cards, to a paid day off, etc. In other words, they don’t need to be extravagant, although I recall a client of ours rewarding one of their drivers with a four-day cruise after keeping a perfect safety record for two years.
Incentive Types
| Incentive Types | Examples | Key Benefits |
|---|---|---|
| Monetary Incentives | Gift cards, salary raises, bonuses | Establish direct connection between performance, compensation, job stability, and recognition for exceptional contributions |
| Non-Monetary Incentives | Extra vacation days, paid time off, public recognition and awards | Drive employee engagement by meeting holistic needs, ensuring work-life balance, and investing in continuous development. |
A Win-Win for Drivers and Your Bottom Line
In the end, no matter how big or small the reward, positively reinforcing drivers who are performing well is a simple way to help reduce your company’s claim activity and keep premium costs down (not to mention wear and tear on your vehicles). If you want to discuss some incentive program ideas, please feel free to contact me at any time.