Commercial Vehicle Driver Incentive Programs

Incentive programs in the trucking industry are mechanisms that can influence commercial driver behaviours through motivation and conditioning. Commercial driver incentive programs provide a variety of financial and non-monetary rewards to drivers for crash-free driving or other similar outcome measures, such as low involvement in incidents or low traffic violation rates (Knipling et al., 2003).

Barton et al., (1998) carried out a study to determine the strengths and weaknesses of incentive programs in place in Canada at the time of the study, as well as the obstacles to successful implementation of safety incentive programs in the motor carrier industry. Forty long haul trucking companies of various sizes from across Canada were interviewed regarding their use of safety incentive programs. The results of the interviews revealed that 70% of the carriers interviewed had some form of incentive program in place. The incentive programs were effective in reducing collisions, with benefit-cost ratios often being greater than 2 to 1. The authors of the study stressed that good communication within the company and between drivers and management were critical to program success, and that safety incentive programs were most effective if accompanied by a wide-ranging safety program. The results of the interviews led Barton et al., (1998) to recommend the implementation of a two-year pilot program to develop and validate a procedures manual, provide case studies of safety incentive programs that included detailed benefit-cost analyses, and the development of a framework and organizational structure for a national recognition program.

As a follow-up to their review of the state of incentive programs in the Canadian trucking industry, Barton et al., (2001) developed a manual to help trucking companies develop, administer, and evaluate incentive programs. Pilot incentive programs were tested with three trucking companies to validate the procedures used in the manual and to document the benefits of these programs compared to their costs. The manual summarizes the elements necessary for effective incentive programs, the most common types of incentives offered, and the development of an action plan with clear objectives. The manual also provides guidance on the organization of a team to direct the program, internal and external communication, and on carrying out benefit-cost analyses to ensure the program is effective (Barton et al., 2001).

Knipling et al., (2003) carried out a study that examined 20 distinct safety concerns faced by commercial fleet managers and 28 safety management methods that are available to address these challenges. Much of the information from the study was obtained from survey questionnaires completed by fleet safety managers who provided information pertaining to their own fleet and other experts in the trucking industry who provided feedback in relation to overall commercial vehicle operations. Knipling et al. (2001) noted that incentive programs are one of the most influential safety management techniques available to increase safety-related driving performance because economic factors are one the most important determinants of worker behaviour. The authors of the study cited the results of a number of fleet safety studies in the United States, which indicated that financial reward programs for safe driver performance ranged from 25% for small fleets (1 to 9 vehicles) to more than 80% for larger fleets (51+ vehicles). It is worth noting that although 73% of safety managers who responded to the survey employed incentives for drivers, they ranked incentive programs 21st out of the 28 as most effective safety management methods to address safety problems. The other expert respondents assigned an effectiveness rating in the middle of the solution set distribution – 14th out of 28.

Staplin et all., (2003) carried out research to determine the extent to which the high turnover rates of truck drivers contributed to truck crashes for long haul operations, and to identify strategies that were most likely to improve driver retention and safety. The research indicated that a commitment to safety from management carried over to drivers. Companies surveyed stated that following the initiation of their safety incentive programs, the incidence of insurance claims, workers’ compensation claims, and crashes were reduced by 65%. The authors of the study noted that the incentives carriers include in their safety programs vary widely, and can include monetary rewards, bonuses, gifts, discounts at truck stops, and recognition programs. The authors cited the conclusions of research by Wilde (Wilde, 1995) which stated that incentive programs for truck drivers can be effective if they are operated under the following elements: managerial vigor, rewarding the ‘bottom line’, attractiveness of the reward, progressive safety credits, simple rules, perceived equity and attainability, short incubation period, stimulating, peer pressure toward safety conduct, involving the family, employee participation in program design, prevention of collision under-reporting, rewarding multiple levels of the organisation, supplementing rewards with safety training, and maximizing net savings versus maximizing benefit-cost. Incentive programs that offer drivers progressively increasing bonuses for extended periods of crash-free driving would provide drivers with a material reason for remaining with their employers (Wilde, 1995).

In his comprehensive study of human factors in the motor carrier industry, Thiffault (2011) noted that literature on the use of incentive programs within the trucking industry was scarce. In order to address this situation, Thiffault recommended that a state-of-the-art incentive program, based on current scientific knowledge be developed and evaluated. Once the incentive program that included strong safety and business components was developed and proven effective, it could then serve as a template or a general set of guidelines for industry to be adapted or adopted on a voluntary basis.

Scope of Problem:

• Knipling, R.R., Hickman, J.S., & Bergoffen, G. (2003). Commercial Truck and Bus Safety Synthesis 1, Effective Commercial Truck and Bus Safety Management Techniques, A Synthesis of Safety Practice. Transportation Research Board, Washington, D.C. Retrieved from: http://onlinepubs.trb.org/onlinepubs/ctbssp/ctbssp_syn_1.pdf

Evidence:

• Barton, R., Tardif, L-P., Wilde J.G.S., & Bergeron, J. (1998). Incentive Programs for enhancing truck safety and productivity? A Canadian perspective. Prepared for Transport Canada, Report # TP13256E. Retrieved from: http://data.tc.gc.ca/archive/eng/innovation/tdc-summary-13200-13256e-896.htm
• Barton, R., Bergeron, J., Marchand, R., Tardif, L.P., & Wilde, G. (2001). How to Implement Incentive Programs for Safety and Productivity Guidelines for Transport Fleets. Prepared for Transport Canada and Federal Motor Carrier Safety Administration, Report No. TP13805E. Retrieved from: http://www.riskplansc.com/wp-content/uploads/2010/10/Riskplans-Fleet-Implementing_Incentives.pdf
• Staplin, L., Gish, K., Decina, L., & Brewster, R. (2003). Commercial Motor Vehicle Driver Retention and Safety. Federal Motor Carrier Safety Administration, Report No. FMCSA-RT-03-004, Washington, D.C. Retrieved from: http://atri-online.org/wp-content/uploads/2016/02/FMCSA-ATRI-CMV-Driver-Retention-Safety-03-2003.pdf
• Wilde, G. (1995) Improving Trucking Safety and Profitability through Safety Incentive Schemes. Montreal, Canada: Transport Canada. Transportation Development Centre, 1995. Retrieved from: https://trid.trb.org/view.aspx?id=485813
• Thiffault, P. (2011). Addressing Human Factors in the Motor Carrier Industry in Canada. Canadian Council of Motor Transport Administrators, Ottawa, Canada. Retrieved from: http://www.enform.ca/files/pdf/publications/33551-277587.human-factorsreportmay2011.pdf