Do employees understand your business acumen?

Business acumen is an in-depth understanding of how a company operates, what drives its business decisions, how it generates revenue, and how it is exposed to losses. Naturally, a motor carrier’s senior leaders are privy to the inner workings of the business. The question is, how much time do they spend providing employees with business acumen, especially in regard to the company’s risk management strategies?

A motor carrier’s present and future success hinges a great deal on its ability to prevent losses. Having a workforce that appreciates the logic behind the company’s risk management strategies and equates those plans to the company’s organizational objectives can go a long way toward minimizing losses and maximizing profits.

Furthermore, if employees understand their roles in the big picture and know how they stand to benefit personally from the company’s initiatives, that knowledge can inspire improved performance and employee buy-in. With this in mind, here are a few areas where motor carriers can improve employee acumen.

VEHICLE CRASHES

According to the National Highway Transportation Safety Administration, 94% of serious crashes are due to human choices. A driver chooses to speed, tailgate, or be distracted while driving, and these behaviors can lead to crashes. Perhaps drivers would be less likely to engage in risky behaviors if they understood the financial impact of losses to them, their coworkers, and their employer. For example, insurance may not cover the hidden costs of a crash. If an employer has to pay for these unbudgeted expenses out of pocket, the losses could trickle down and affect employee benefits, wages, and other areas.

PUBLIC PERCEPTION

Drivers are the forward-facing image of the company. They have more interaction with customers than anyone else has and they leave a lasting impression.

That is why motor carriers should explain to drivers why their personal hygiene, attire, and professionalism are crucial to maintaining the company’s image.

Likewise, drivers, mechanics, and dispatchers directly influence public perception of the company through its Safety Measurement System results. Moving violations, mechanical defects, hours-of-service violations, and BASIC alerts can all damage the company’s credibility and affect its ability to compete for business.

REGULATORY COMPLIANCE

Complying with federal regulations and state laws is another way to improve an employee’s business acumen. For those employees new to the trucking industry, the DOT regulations can provide a meaningful introduction. Explain to employees how avoiding compliance violations and fines are loss prevention techniques that support the company’s bottom line. When employees look at compliance that way, they may be more inclined to support compliance efforts rather than view them as a burden. 

Note: These lists are not intended to be all-inclusive.

The information in this article is provided as a courtesy of Great West Casualty Company and is part of the Value-Driven^® Company program. Value-Driven Company was created to help educate and inform insureds so they can make better decisions, build a culture that values safety, and manage risk more effectively. To see what additional resources Great West Casualty Company can provide for its insureds, please contact your safety representative, or click below to find an agent.