Category Archives: Workplace

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Three Tips for Using Telematics to Keep Drivers Safe This Winter

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Speeding. Harsh stops. Rapid acceleration. Cornering. Fleet managers are likely familiar with these buzzwords related to driver behavior, but what is the real impact of not fixing the way employees operate company vehicles?

According to the National Highway Traffic Safety Administration, driver error causes 94% of all vehicle collisions. Along with the physical and psychological consequences that accidents cause all parties, they can also have far-reaching financial liabilities for businesses if company drivers are found to be the negligent party.

Driving in winter weather amplifies these risks, and without the proper precautions, a company’s drivers may cause a fatal accident on icy or snow-covered roads if they speed when running late, make harsh stops when distracted, or rapidly accelerate in traffic.

We know the basic rules of thumb for driving in winter weather: Slow down, leave extra distance between your vehicle and the one in front of you, turn the wheel into a skid. But for employees who drive company vehicles, there is an added layer to safer driving in winter weather: telematics. Telematics are devices that gather and send data from the vehicle to fleet operators, providing insight into drivers’ actions and their safety, and other information like the conditions of the vehicles and roads.

Here are three tips for using telematics to keep drivers safe during winter weather:

  1. Closely monitor driver speed

Usually, companies set real-time speeding alerts with some room for driver error. Leaving this room for drivers includes setting posted speed alerts that do not trigger unless the driver is traveling at least 10 miles per hour over the posted speed limit, or setting high speeding thresholds in general where the alert only hits if the driver is going above 80 miles per hour.

A best practice during winter months is to set these thresholds much lower and become more stringent on violations. For example, setting the posted speed limit violation threshold to 2 miles per hour over the posted speed of the road can ensure that drivers are staying close to the limit and taking their time getting to their next stop.

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  1. Stay alert on maintenance demands

Telematics solutions can monitor for various vehicle maintenance needs, such as oil life and tire pressure, in real time and notify the fleet manager when maintenance is needed.

Batteries die faster in cold weather, especially when they sit for extended periods. By using a telematics solution, fleet managers can receive alerts when batteries drop below a specific voltage. Setting this alert serves as a reminder to start the vehicle or investigate to prevent a dead battery.

This knowledge can save a fleet thousands of dollars in unnecessary maintenance costs and improve safety for drivers by reducing the number of faulty vehicles.

  1. Proactively coach drivers to navigate tough road conditions

Speeding, rapid acceleration and harsh braking should always be avoided, but these actions are particularly dangerous in winter weather environments. By harnessing GPS telematics and predictive analytics, fleet managers can catch patterns of unsafe driving behavior before it results in a serious accident. Rather than rely on general training for all drivers, fleet managers can provide one-on-one evaluations that focus on each driver’s pain points using real-time alerts, reactive reports and driver scorecards.

Enforcing a business safety culture backed by actionable telematics data can ultimately help companies ensure the safety of their employees and the public in real time. No business wants its drivers to be put in harm’s way on the road, but safety also makes good business sense.

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Company vehicles are driving billboards, and along with the potential to put the public in harm’s way, it will ultimately hurt the bottom line if the brand is associated with accidents, fatalities and poor driving habits.

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Ahead of RIMS ERM Conference, Keynote Speaker Gretchen Anderson Talks Culture Change

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At next month’s RIMS ERM Conference 2019, the opening keynote speaker will be Gretchen Anderson, director of the Katzenbach Center at PwC and co-author of The Critical Few: Energize Your Company’s Culture by Choosing What Really Matters. Her address will aim to provide risk professionals with a playbook for successful enterprise-wide culture change. She recently sat down with Risk Management Monitor for a preview, discussing the relationship between culture and productivity and the role of risk management in helping drive change.

Many companies have hired you to help them institute culture changes. What are some unrealistic goals you encounter?

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Gretchen Anderson: The unrealistic goals that we hear about when we’re talking about culture change often have to do with speed and type. Regarding speed, the mistake I often hear leaders make is when they say something like: ‘I need my company’s whole culture to change by a deadline.’ That could be in time for them to roll out a new operating model or in time for a new CEO who’s about to take charge. And I tell them it takes much longer than they think it will take. Nevertheless, there are ways you can think about speeding that up as long as you accept that you’re working on a timeframe of years, and not months.
The other unrealistic goal is thinking you can implant another organization’s culture into yours. You can’t just copy another culture and expect that to spark innovation. Think of an enterprise as an organism that has to adapt or reject new tissue; an idea will be rejected if it doesn’t line up with the ways that people already like to work.

Is culture change easier for smaller or larger enterprises?

GA: A small company has the ability to test and learn really quickly, especially if they need to shift the culture into one where its people can work more virtually or even where they hold meetings more effectively. Small organizations have the advantage of moving quickly but they don’t have as much evidence and data points later, and so they don’t always see the cumulative effects over time simply because they have comparatively fewer employees than larger enterprises.

What are the top factors/traits you have noticed that companies possessed when implementing a successful culture change?

GA: Everything about a cultural evolution involves taking it out of the realm of faith and bringing it into the realm of proof. It can’t just be about people liking their work better, organizations [need to get] people to really understand how their behaviors, habits, norms and way of working are going to help their business be successful.

As a consultant, what has your experience with risk professionals been like?

GA: The people in risk management are such careful observers of the way that we work, the way that work gets done and what people can bring to a solution. I think their voice needs to be really strong to facilitate a discussion about how culture supports the business.

One of the key takeaways from the 2018 ERM Conference was that risk managers need to earn their seat at the table, but they can also be the drivers of culture change. Which do you think should come first?

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GA: I would absolutely say a seat at the table has to come first. Once risk managers earn that seat, they can track how effective the change is and then that becomes the case for further change. I think it’s really authentic to act your way into a new way of thinking because it acknowledges there’s always a level of experimentation and proof in trying to evolve your behavior.

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For Anderson’s full interview and a deeper dive into culture change, click here to check out her episode of RIMScast.

Working to Close the Gender Pay Gap

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U.S. government regulators at the Equal Employment Opportunity Commission (EEOC) are requiring all private companies with over 100 workers to provide information including their workers’ genders, race and ethnicity as it relates to compensation. The EEOC uses this information, in part, to measure any pay gaps between employees that could be based on these characteristics. The EEOC instituted the requirement in 2016, and it covers about 70,000 employers and 54 million workers.

The Trump administration halted the rule’s implementation in 2017, but advocacy groups sued the EEOC, and in April, a federal district judge ordered its reinstatement. The rule requires that employers submit information about employees’ median pay and hours in various positions within the company, from sales staff to executives, both full-time and part-time.

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The policy is intended to make companies confront the actual data about their gender and racial pay gaps, which they may be reticent to do. Former EEOC commissioner Jenny Yang said, “Right now, there’s a strong incentive to not look under the hood, because if you find problems, many feel they’re under an obligation to immediately fix it, so they’d rather not.”

Not all companies are so unwilling to address the issue. For example, Nordstrom announced that it had achieved full pay equity, but that it was still working to ensure an equal share of men and women in leadership and top-paying jobs.

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Intel also announced “full representation” in its workforce—that the makeup of their workers mirrors the available talent pool—and pay equity for male and female employees.

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At the same time, U.S. pension funds and investors are similarly applying pressure to companies over their pay gaps. The pension funds for the states of Connecticut, Minnesota and Oregon are reportedly pushing for companies to disclose information about the promotion and compensation gaps within their ranks, as are private investment firms. These investors see companies’ insufficient gender equality as a risk that affects their bottom line. Tobias Read, treasurer of Oregon, told the Financial Times, “Gender equality, if we are not paying attention to that as a risk, we are not living up to our fiduciary responsibilities.”

Investment firm Arjuna Capital has filed multiple shareholder proposals to the various companies it invests in, asking for them to disclose median pay information related to gender and race. In response, Citigroup disclosed that its female employees make 29% less than their male colleagues, and pledged to continue working to increase representation of women and minorities within the company. Famously, the firm State Street Global Advisors put a bronze statue of a small girl near the Wall Street bull to raise awareness of index funds of companies that have gender-diverse leadership. Reportedly, as a result of the publicity, hundreds of companies worldwide moved to add at least one woman to their boards.

Investors making decisions based on environmental, social and governance (ESG) factors has been a growing trend, as Risk Management reported in the May article “Getting Serious About ESG Risks.” As that article stated, investors have used their clout to make companies focus on issues like climate change, and start considering not only the affect that environmental changes have on the business, but also the effect the company’s operations have on the environment. These considerations are changing risk managers’ evaluations and calculations of their companies’ risk profiles, and slowly changing companies’ gender diversity.

A lack of gender equality in pay or representation can not only lead to reputational damage for a company, but companies that do not have diverse workforces at all levels can miss out on the innovation that diversity and inclusion can bring. And this does not just mean bodies in the room—it means actually listening to different voices from different groups of people.

Inclusion Does Not Stop Workplace Bias, Deloitte Survey Shows

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In Deloitte’s 2019 State of Inclusion Survey, 86% of respondents said they felt comfortable being themselves all or most of the time at work, including 85% of women, 87% of Hispanic respondents, 86% of African American respondents, 87% of Asian respondents, 80% of respondents with a disability and 87% of LGBT respondents. But other questions in the company’s survey show a more troubling, less inclusive and productive office environment, and may indicate that simply implementing inclusion initiatives is not enough to prevent workplace bias.

While more than three-fourths of those surveyed also said that they believed their company “fostered an inclusive workplace,” many reported experiencing or witnessing bias (defined as “an unfair prejudice or judgment in favor or against a person or group based on preconceived notions”) in the workplace. In fact, 64% said that they “had experienced bias in their workplaces during the last year” and “also felt they had witnessed bias at work” in the same time frame. A sizable number of respondents—including 56% of LGBT respondents, 54% of respondents with disabilities and 53% of those with military status—also said they had experienced bias at least once a month.

Listening to those who say they have witnessed or experienced bias is especially important. When asked to more specifically categorize the bias they experienced and/or witnessed in the past year, 83% said that the bias in those incidents was indirect and subtle (also called “microaggression”), and therefore less easily identified and addressed. Also, the study found that those employees who belonged to certain communities were more likely to report witnessing bias against those communities than those outside them. For example, 48% of Hispanic respondents, 60% of Asian respondents, and 63% of African American respondents reported witnessing bias based on race or ethnicity, as opposed to only 34% of White, non-Hispanic respondents. Additionally, 40% of LGBT respondents reported witnessing bias based on sexuality, compared to only 23% of straight respondents.

While inclusion initiatives have not eliminated bias, Deloitte stresses that these programs are important and should remain. As Risk Management previously reported in the article “The Benefits of Diversity & Inclusion Initiatives,” not only can fostering diversity and inclusion be beneficial for workers of all backgrounds, it can also encourage employees to share ideas for innovations that can help the company, keep employees from leaving, and insulate the company from accusations of discrimination and reputational damage.

But building a more diverse workforce is only the first step, and does not guarantee that diverse voices are heard or that bias will not occur. Clearly, encouraging inclusion is not enough and more can be done to curtail workplace bias. And employees seeing or experiencing bias at work has serious ramifications for businesses. According to the survey, bias may impact productivity—68% of respondents experiencing or witnessing bias stated that bias negatively affected their productivity, and 70% say bias “has negatively impacted how engaged they feel at work.”

Deloitte says that modeling inclusion and anti-bias behavior in the workplace is essential, stressing the concept of “allyship,” which includes, “supporting others even if your personal identity is not impacted by a specific challenge or is not called upon in a specific situation.” This would include employees or managers listening to their colleagues when they express concerns about bias and addressing incidents of bias when they occur, even if that bias is not apparent to them or directly affecting them or their identity specifically.

According to the survey, 73% of respondents reported feeling comfortable talking about workplace bias, but “when faced with bias, nearly one in three said they ignored bias that they witnessed or experienced.” If businesses foster workplaces where people feel comfortable listening to and engaging honestly with colleagues of different backgrounds, create opportunities for diversity on teams and projects, and most importantly, address bias whenever it occurs, they can move towards a healthier, more productive work environment.