Friday, May 17, 2013

A companies bonus programs, or lack thereof

This something I have noticed recently and it is pretty interesting.  You have some companies that have some great bonus programs and others that have hardly any.

When you compare the performance of these companies you notice a huge difference.

For example, one company MVT, has a great series of bonus programs for their drivers.  The results show that they have a pretty good CSA record, and their trucks average over 8 mpg.  That is a lot of money saved with fuel alone.

The company I drive for could set up a series of programs for both their company drivers and owner operators.  Here is what I thought of.

A quarterly bonus program if the truck reaches a set goal on fuel mileage.  Just as an example lets set this at 250 dollars.

A quarterly bonus program for safety.  A driver who has no accidents or critical events is a safe driver.  Again set it at 250 dollars.

A monthly bonus program for miles driven.  Depending on how many a driver has on a sliding scale could determine how much they get.

The thing about it a driver could make in the course of a year say 3-4 thousand extra dollars by doing nothing more than being safe, driving efficiently and planning well to get more miles.  What this does for the company is that it will give them a safer driver, reducing accident claims, more revenue with the fuel savings, and more revenue with the miles driven.

As far as an owner operator, you could go with the safety program with them.  The other program with the owner operators that you could do would be a program on not being late on pick up or deliveries.  Again these programs would lower the accident claims, and help enhance the customer relations with the shippers and receivers.

Although someone is probably thinking that the company is spending money on these type of programs they actually come out way ahead in the long run.  Programs that help lower outside insurance claims, help create safer drivers, save fuel, and money and help improve relations pay out in many ways.  Just the savings on the fuel would pay for the programs and still leave the company with a good sized profit margin just on those savings.

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