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Safety Incentives: 55 Saves Lives
October 28, 2008
New York luxury limo provider Valera Global uses its safety program to build driver pride
By Leo Jakobson
The idea of a safety incentive program can seem a little counterintuitive: After all, who needs outside motivation not to get hurt? Well, the reality is safety programs are not about motivating employees to avoid hurting themselves; the purpose of a well-designed safety incentive is generally to motivate employees to pay a little more attention to the work they are doing, to keep safety at the top of their minds in a way that doesn't get tuned out with routine.
For employers, safety incentive programs do more than give the boss a warm fuzzy feeling: They can provide real bottom-line benefits, like better insurance rates, lower workers' compensation costs and reduced sick days. If done right, safety incentives can even provide a morale-boosting shot of pride to the workforce, and a foot in the door with potential customers.
That is the theory of Valera Global, a high-end car service that runs an extensive safety and training program for its approximately 200 New York City chauffeurs.
Valera Global operates in a city whose midtown traffic jams and aggressive drivers are legendary. Focused on top-level corporate executives and other high-profile customers, Valera Global has made safety a selling point and invests heavily in training and accident avoidance. "We rely heavily on that [for sales]," says Bob Mackasek, CEO of Valera Global. "Anybody can get four wheels and drive you around. Our clients are upper echelon. It is comforting to know their driver is a professional who has done this for years, has been trained."
The firm's 18-year-old safety program is homegrown, like the rest of its incentives, which include monthly and annual awards for best-dressed chauffeur, best-maintained car, best booker and driver of the year as well as a length-of-service program with awards like a watch at five years and a Coach bag at 15 years. The safety program uses a variety of gift cards, awarded for each six months accident free. Each year thereafter, the award goes up, maxing out at $800. "We believe the safety program results in better driving," says Mackasek. "Drivers compete for awards, it becomes a matter of pride."
The safety program itself is built around the company's extensive training program, which begins with a 180-hour classroom training course taught by the three nationally certified safety instructors the firm has on staff—far longer than average for the industry. In addition, since 2004, the company's cars have been fitted with a DriveCam, a device that combines a digital video camera and a G-force meter. Ten seconds of footage before and after any "G-force incident," from hard braking to a sudden swerve to a crash, is recorded. "The instructors review and discuss it with our chauffeurs," Mackasek says. "This lets our instructors discuss what leads to an accident, how to improve driving habits." Braking hard often means the driver is following another car too closely. While continued poor driving habits can lead to dismissal, Mackasek says the focus is on improving drivers' skills, not punishment.
Safety awards are handed out at an annual dinner in a penthouse overlooking Flushing Meadows Park in Queens. The event "is better than most weddings I've been to," says Mackasek. "Every employee brings a spouse or guest. A lot come in formal dress."
The program has also shown a return-on- investment. From 2004 through 2007, accidents have dropped 20 percent, and the company's severity rate—an insurance term that measures the number of dollars per mile driven that Valera Global's claims represent—dropped from $0.13 per mile to $0.02 per mile, an 81 percent reduction.
While the safety and peace of mind of clients and drivers are the most important benefits of the program, Mackasek says, the savings do accrue on the bottom line. "Beyond lower insurance rates," he says, "having safer chauffeurs also translates into less money spent on car repair bills, maintenance costs, interruptions to service, liabilities, lost productivity, sick leave, temporary staff, third party vendors and fuel costs."
Send comments to ljakobson@incentivemag.com.
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