Grey Fleet Management

20.09.18

Grey Fleet Risk Management

There are a number of challenges for businesses in respect to grey fleet risk management.  It’s probably never been as important for your business to understand and manage it’s grey fleet.  There are business implications from safeguarding staff and business liability, to cost cutting and maintaining environmental credentials.  Many companies do not have any idea what vehicles their employees are driving or the associated costs.

Firstly, if you want to find out more about the implications of grey fleet then hop over to our first Grey Fleet blog.  If you’ve already read it then read on…

Tips for your managing your grey fleet

1 Decide who is responsible

Having a dedicated person in your company will ensure that this area doesn’t get overlooked.  It may fall under the remit of a fleet manager but it could also be an HR or Health and Safety Manger.  The Health and Safety Executive (HSE) has advised companies to integrate work-related road safety into their overall health and safety at work arrangements.

2 Establish a grey fleet policy

Expectations of all employees making work-related journeys can be set out in a driver safety handbook or included as part of a staff handbook.  A signed declaration that indicates han employee has read and understood the policy gives further assurances.

3 Assess the risk

Regular risk assessments should be carried out on all grey fleet drivers.  Drivers can be risk scored based on several factors such as their annual mileage, number of endorsements and driving incidents, their driver training history etc.

4 Ensure fitness to drive

Everything you would do to ensure the fitness of an employee to drive a company owned vehicle or leased vehicle should also be applied to grey fleet.  The HSE advises that an individual’s fitness to drive is judged on a case by case basis.

Everything a business does to ensure fitness of employees to drive company vehicles if owned or leased should also be applied to grey fleet.

5 Check driving documentation

The ideal time to check documentation is as part of the recruitment process and then periodically thereafter.

6 Conduct driver risk assessments

Regular risk assessments should be carried out on all grey fleet drivers.  Drivers can be risk scored based on several factors such as their annual mileage, number of endorsements and driving incidents, their driver training history etc.

7 Manage driving hours and fatigue

Driver journeys should be managed effectively with employees warned of the dangers of fatigue behind the wheel.  A road safety policy for grey fleet drivers can stipulate company rules for driving hour, reminding employees of The Highway Code recommendation that drivers should take a 15-minute break every two hours.

8 Ensure vehicle safety

Privately-owned vehicles used by grey fleet drivers are sometimes older vehicles and not always well maintained.  Businesses should ensure that vehicles are fit for purpose and meet minimum safety standards.  A company might stipulate a maximum vehicle age and mileage, along with a minimum Euro NCAP rating.

What are the alternatives to grey fleet vehicles?

Some of the alternatives to grey fleet vehicles are telephone or video conferencing, public transport, car rental, car clubs and schemes, car leasing or fleet management.  Management policy on the use of grey fleet vehicles should be part of a travel plan with a strategy to manage risk by cutting overall business mileage

Grey Fleet Risk - Travel Hierarchy

 

  • Can the journey be avoided through the use of audio or video conferencing?

If so this should be the first option helping to remove all carbon dioxide emissions and a large part of the costs.

  • Rail, Tube or Bus? Can the journey be carried out on foot, bike or public transport.

Public transport isn’t always an option for all journeys, but it can be a more efficient option taken into account the lower emissions and the fact that on the whole it is a safer mode of transport

  • Car Leasing

Leasing vehicles provides a fixed cost and cost-effective solution when compared with grey fleet miles. If a lease car is available this is likely to be the most cost efficient option.

  • Is there a pool car or fleet vehicle available?

Wherever possible employees are usually required to use pool cars as an alternative to private car use and claiming business mileage.

  • Will a hire car be cost effective?

Hire cars typically provide better value for longer journeys (over 70 miles) plus they typically have lower emission levels than private vehicles.

  • Where none of the above options are available, authorised private vehicles may be used for short journeys (round trips under 70 miles)

Employees may use there own authorised vehicle for journeys under 70 miles, provided that they can demonstrate to their line manager that they have discounted the above options.

There is likely to always be a requirement for the use of grey fleet, for example if you have an employee travelling a few miles to the train station you wouldn’t want a fleet car tied up when it’s just parked at the train station for the day.  It is however about finding good alternatives to keep grey fleet mileage to a minimum.

Finally as Car Leasing is an efficient way of managing your risk talk to us about vehicles.  We are happy to help whether you’ve got 1 or 100s of vehicles.  So call us on 0800 694 3880 to discuss your options

 

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