Webinar Replay Video 110: Return on Safety Training
Turn Behavioral Change Into Measurable Profit
Turn Behavioral Change Into Measurable Profit
Transcription
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Lydia Wommack: Hi, everyone! Good morning!
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Lydia Wommack: Thank you so much for starting your Friday with us. You know, we like to end the week on a high note, and have something to think about over the weekend, and so, we’re really excited for this topic today.
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Lydia Wommack: Just as a quick reminder to everyone, we do always record these. The meeting is being recorded. We’ll share the replay afterwards in case you have to step away, or, you know, we get it. Safety is one of those things that it never stops and you’re going to get pulled away. So, we’ll send that replay around. Also, we are a proud sponsor and supporter of NATME, and our webinars are, eligible for NATME recertification points. So anyone who’s a certified director of safety and is seeking
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Lydia Wommack: their recertification,
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Lydia Wommack: let us know, and we can issue a certificate for attending the webinar today. And other housekeeping item, please hop over and chat, we’d love to visit with you. Feel free to ask Jay questions, and interrupt, and add your own stories, because, you know, we love all learning together.
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Lydia Wommack: But today, we’re here to talk about the rising cost of operation. I know nobody wants to hear that. We’re all feeling it. We’ve been feeling it for a while, you know.
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Lydia Wommack: things were wild coming out of COVID, and now the cost of repairs and maintenance, the cost of insurance keeps going up because claims and accidents keep going up, nuclear verdicts are hitting hard, and ATRI’s Top Industry Issues report, which was released in October.
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Lydia Wommack: In the top three, of course, the economy.
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Lydia Wommack: and the cost of doing business rising. Number two is lawsuit abuse, and number three, the rising cost of insurance. So, all irrelevant issues, and I think adding to that, for the safety world especially, we’re seeing more and more technology adoption to solve the safety problem, and that’s a double-edged sword. It’s a good thing, because there are some really great tools out there, but it also means that we have
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Lydia Wommack: Bigger and bigger tech stacks, and bigger and bigger expenses.
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Lydia Wommack: And tons of data, you know, data fatigue, and if you’re not watching it all, then it’s actually harmful to your business, and can be really harmful in the case of litigation. So I think we all have to ask, with all of the money we’re pouring into this, is the profitability growing alongside it?
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Lydia Wommack: Now, we at INFINITI, of course, believe strongly in the power of training, and the power of safety training and proactive and preventative training in reducing accidents, injuries, claims, improving efficiency, and so we asked Jay to join us to actually look at where safety generates a return on investment, how we can move safety from a cost center, something we’ve typically thought about as just
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Lydia Wommack: being an expense within the company to a real profit center, something that can add value to the bottom line. So, Jay, with that, glad you joined us. Please take it away.
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Jay Wommack: Thank you, Lydia, I appreciate that.
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Jay Wommack: about 3 weeks ago, I was sitting on an airplane from Orlando to DFW,
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Jay Wommack: And I sat next to the CFO of a company that had 30,000 employees.
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Jay Wommack: And we were talking about, what do we do? And he said, well, what do you do? And I said, well, I’m the CEO and founder of a company called INFINITI Fleet Safety Training, and we do fleet safety training.
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Jay Wommack: I said, but we do it a little bit differently. What we… what we did is we looked at the world around us and said, you know, most companies think in terms of safety as an expense, as a check the box.
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Jay Wommack: And I said, we’d do it a little bit differently. We looked at it and said.
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Jay Wommack: What if we decided to get a return on our investment for safety dollars?
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Jay Wommack: what would that look like? And so, that’s how we claim to be, number one, return on safety, because we started attaching your training dollars to your P&L and balance sheet, or line items within the department that you’re looking at. And that is what we wanted to do, and this… and we started doing that, and we started doing that years ago.
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Jay Wommack: But that’s what we evolved to. And he looked at me, he was the CFO of a company that runs… they had 30,000 employees, and they have ambulances, and they have ambulances, helicopters, and airplanes.
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Jay Wommack: And… and he looked at me and he said, that is a novel approach to safety, because you’re right, we think of it in terms of it’s an expense and check the box. And most companies do, and I’m about to open your world up a little bit when you start looking at it a little bit differently, but the first thing I want to do is…
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Jay Wommack: Lydia, my screen is not advancing.
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Jay Wommack: I am sharing my screen, it’s not advancing.
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Jay Wommack: So… Okay, so the first thing I want to do, since it’s not going to advance, is…
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Jay Wommack: Oh, there we go. There we go. Did it that way.
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Jay Wommack: All right I want to define return on safety.
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Jay Wommack: And that is reduced losses plus improved efficiency divided by… divided by the training investment.
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Jay Wommack: you’re already spending money on safety, so what is the return on safety? It’s, what do you… how do we reduce your losses, how do we improve your efficiency, and what are you spending on your training?
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Jay Wommack: And everybody spends money on training one way or the other. They’re either doing it just with employees, or they’re doing it through an actual budget, they’re doing it through a system, or… or they’re just trying to wing it to the back of a truck in the oil field. So, but we help fleets structure
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Jay Wommack: That existing spend so it safeguards the company and compounds the financial performance.
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Jay Wommack: And here’s the premise we start with. Everybody should have a quote. This is my quote.
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Jay Wommack: Your greatest asset.
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Jay Wommack: And your greatest liability is the behavior of your employees. Now, we just had a boot camp this week in Dallas. We have… we have about 2 a month. We just had one this week, and I’ve got 2 or 3 owners sitting in the room, and I’ve got about 10 different safety directors sitting in the room. And when I put this slide up on the screen, they said, wow, that is exactly right.
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Jay Wommack: And if you don’t believe this, think about the employee that drove a truck, what, about 4 or 5 weeks ago in Florida and made an illegal U-turn
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Jay Wommack: And cost the lives of people, and it’s gonna cost that company, could cost them their existence.
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Jay Wommack: So, your greatest asset and your greatest liability is the behavior of your employees, and what we focus on is behavioral change training.
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Jay Wommack: And what we want to do is look at what… what line items
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Jay Wommack: Create the biggest return on your investment for your safety dollar, so that you can actually get a return on your investment.
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Jay Wommack: Now, how do we know this?
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Jay Wommack: How do we know that we can do this? Because we’ve been in business 26 years, we’ve delivered 185 million… 888 million training sessions to over 3.5 million.
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Jay Wommack: Employees to over 5,000 companies, and we have all of that data from day one, and we can pour through that data and look at it, and look at the flow and the charts and see what training programs worked, which ones reduced accidents, which ones improved employee behavior, which ones didn’t.
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Jay Wommack: And we can compile all that down to what we call our process and our protocol for you to be more successful.
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Jay Wommack: And that’s what we’ve done.
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Jay Wommack: So, now I want to start telling the story. Now I want to get into the fun part of this meeting.
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Jay Wommack: Behavioral change.
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Jay Wommack: I want you to imagine, and it’s always more fun to do this in front of a group, but I want you to imagine that you have a 15-year-old teenager, and many of you have had 15-year-old teenage sons
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Jay Wommack: Or daughters, and I want you to imagine that on January the 1st of this year, you’re gonna walk in and say to them, this year, son, we’re gonna do things differently.
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Jay Wommack: this year, I want you to make your bed, brush your hair, you know, brush your teeth, you know, take the trash out, feed the dog, do all the things you’re supposed to do.
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Jay Wommack: And I’m gonna check back with you at the end of the year, and we’re gonna see how that works out.
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Jay Wommack: Now, when I’m doing this in front of a live audience, everybody laughs, because they know that’s not gonna work out.
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Jay Wommack: So, we do the opposite of that.
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Jay Wommack: We want to make sure that we do short, sweet, to-the-point, quick, quick, quick reminders.
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Jay Wommack: See, there are a couple of philosophies that go along here. Number one.
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Jay Wommack: The society today has the attention span of a gnat.
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Jay Wommack: I mean, go back to my J.
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Jay Wommack: We’d watch John Wayne and Dean Martin on movies, and they’d spend a minute lighting their cigarette on a lamp, and we’d watch it. Now today, you have the MTV generation. They need an edit almost every half of a second or more.
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Jay Wommack: then are you smarter than 5th grader? So we put that common sense approach together and said, let’s put together a curriculum
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Jay Wommack: It’s 2 to 3 minutes, so… An employee can log on.
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Jay Wommack: take the curriculum, a quick, short, sweet, to-the-point reminder of what they need to do, or what their behavior should be, like, don’t use a cell phone, or drive more fuel efficient, or don’t tailgate. Whatever the message needs to be.
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Jay Wommack: deliver it over and over again over the next 52 weeks, deliver it to them at least… at least 26 times, if not 52 times, and all of a sudden, they can log on, they can take the curriculum, they can log out. But let’s talk about how you get real behavioral change.
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Jay Wommack: Because that concept I just shared with you, we were doing 6 years before MIT came out with their study that said, this is the way you get behavioral change training within your company.
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Jay Wommack: So I want you to think about this at your company.
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Jay Wommack: I want you to picture your best driver.
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Jay Wommack: Your safest driver.
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Jay Wommack: If you’re a driver that shows up on time.
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Jay Wommack: Driver that’s the easiest to work with.
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Jay Wommack: Can you picture that person?
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Jay Wommack: When I’m doing this in front of a live audience, they always picture that person.
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Jay Wommack: I want you to picture the opposite of that. Picture your worst driver.
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Jay Wommack: That’s when the eyes start to roll in the audience.
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Jay Wommack: But let’s go back to the best driver.
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Jay Wommack: So you identify that person. Now what you want to do is you want to model that person.
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Jay Wommack: What is their behavior? How do they wake up and think about driving that truck? How do they think about… it doesn’t have to be a truck, it can be a forklift, it can be anything.
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Jay Wommack: How do they drive that vehicle? How do they think about their day? It can be your salesperson. How does that best salesperson think about their day? Let’s model their behavior. Let’s model the behavior of your drivers.
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Jay Wommack: Let’s put it into a video series, and then let’s deploy it.
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Jay Wommack: So, the story I want to tell you is from 2007.
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Jay Wommack: I had a mentor, his name was Tony Smith, and Tony had a company, he started with his wife, with one truck, and they grew it to 1,400 trucks.
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Jay Wommack: And I walked in one day, and Tony was my mentor, and I could walk into Tony and ask him any question, make any comments, any statements, and he’d look at me, and half the time, he’d roll his eyes and tell me I was, you know, crazy womb. That’s the dumbest thing I ever heard of.
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Jay Wommack: About half the time, he’d say, that’s not a bad idea, let’s try that. Well, I walked in in 2007, and I said, Tony.
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Jay Wommack: I have an idea.
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Jay Wommack: Price of fuel has really gone up. By the way.
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Jay Wommack: This is the most appropriate timing for this story.
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Jay Wommack: Because the price of fuel has shot through the roof.
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Jay Wommack: So, Tony, do you keep records of your 5 most fuel-efficient drivers? And he said, of course we do.
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Jay Wommack: He said, I know, I know all of them.
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Jay Wommack: their driving record. I know all their MPG.
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Jay Wommack: So we took their 5 most fuel efficient, and we put cameras on those 5, because here’s the thing.
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Jay Wommack: I wanted to find out if we could get the rest of his fleet to be as fuel efficient
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Jay Wommack: It’s those five.
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Jay Wommack: And by doing that.
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Jay Wommack: I can connect the dots that the most fuel-efficient drivers, and don’t take my word for it, I can send you some case studies on this.
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Jay Wommack: Are the safest drivers.
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Jay Wommack: The ones that are more fuel efficient.
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Jay Wommack: have more safety. They’re safer drivers because of the way they drive.
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Jay Wommack: So all of a sudden, now I can look at it and go, if we can get fuel efficiency for your fleet, Tony.
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Jay Wommack: You save money there, And you have less accidents.
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Jay Wommack: So we did that, and we put the cameras on these guys, because these drivers, they don’t want to hear someone from Freightline or Peterbilt talk about how to drive more fuel efficient, and how aerodynamic that vehicle is, and they don’t want to hear someone from the ivory tower selling. They want to hear one of their peers, one of their other drivers talking to them, and that’s what we did.
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Jay Wommack: So we put the camera on 5 different people. We had about 6 or 7 hours of content. We boiled it down to…
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Jay Wommack: 50… sorry, we actually boiled it down to 26.
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Jay Wommack: Two to three minute videos, and assigned one a week out.
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Jay Wommack: And we did that in 2007.
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Jay Wommack: And I’m gonna get ahead of myself.
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Jay Wommack: But Tony?
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Jay Wommack: at his company, Improve their fuel efficiency.
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Jay Wommack: by 13%. And with 1,400 trucks.
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Jay Wommack: That’s the number at the bottom of the screen that he saved in fuel.
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Jay Wommack: Because of what we did. That doesn’t even count the accidents, the decrease in accidents they had. You know, the less… less dings and truck stops, everything that goes along with that.
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Jay Wommack: That is a powerful number, and right now, when we’ve seen the price of diesel shoot up.
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Jay Wommack: That’s one of those programs you need to take a look at. Now, Tony…
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Jay Wommack: Took that line item that we worked on.
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Jay Wommack: And then he started looking at all these other line items in his company.
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Jay Wommack: And when he was running those line items, and we were doing behavioral change training on all of those line items, I’ll show you the numbers that he did later, but right now, I want to show you one generic number versus Tony’s number.
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Jay Wommack: When Tony did his fuel savings program, he got a 13% savings, and you saw the number, and that… go do the math.
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Jay Wommack: We rolled out that exact same program
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Jay Wommack: To all of our other fleets, and the ones that participated got an average of 3%.
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Jay Wommack: Now, why was it 3% versus 13?
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Jay Wommack: I think it was because we used Tony’s equipment, and he let us use that as a generic program. We used Tony’s drivers, they all knew the drivers. They knew those people. They were lifers at the company, they were some of the better drivers at the company.
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Jay Wommack: So… so…
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Jay Wommack: When you can make a personal connection, and we can use your own custom content… by the way, we have a video production department that helps you do that.
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Jay Wommack: When you can use your own content, use your own equipment, and use your own drivers, it actually gives you a bigger bang for your buck. But in the meantime.
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Jay Wommack: Generic is 3%. We have a testimonial from somebody that got a 7% return on their investment, and they had a small fleet, but they were saving $8,000 a week in fuel.
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Jay Wommack: And then they could apply that to other parts of their company. And because they were saving in fuel.
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Jay Wommack: they had safer drivers. And once again, don’t take my word for it.
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Jay Wommack: Yo.
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Jay Wommack: I had the people from that company that has the great big smile on their trucks without saying the name of them, and they confirmed this with all of their drivers that are all over the country and the world. So, that is one way to take a look at it. So, what Tony ended up doing with that one beginning, that one small beginning.
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Jay Wommack: When the industry was running a 102 operating ratio, he was running an 88. Now, let me explain to those of you that don’t know financial side what that means. For every dollar
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Jay Wommack: Anything above that, you’re losing. Anything below that, you’re gaining.
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Jay Wommack: So, for 100, you’re breaking even. At 101 to 102, you’re losing 1 to 2 cents per dollar.
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Jay Wommack: And at 88, you’re making 12 cents per dollar.
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Jay Wommack: So, Tony’s OR, during 2008 and 9, if I go back to that slide right there, during 2008 and 9, Tony’s OR
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Jay Wommack: Was so much better than the industry.
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Jay Wommack: So I went to chat, and I said, chat, what were the top companies doing during this time? Not just the industry average. What were the top companies doing? And the top companies in the industry were running anywhere from 94 to 96 OR. Tony was beating the best companies out there.
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Jay Wommack: All because he targeted his training.
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Jay Wommack: And we got a front-row seat because we did it for him. And that’s what I want to bring to the table, is those types of concepts.
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Jay Wommack: So now, now apply it. Let’s take driver turnover as an example of problems within the industry that end up causing quite a bit of… let’s see if I can…
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Jay Wommack: Our system has a… there we go.
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Jay Wommack: Excellent.
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Jay Wommack: Let me apply it to driver turnover as an example, because what does safety have to do with driver turnover? Well, quite a bit. And I’m going to show you a slide here in a second that’s really powerful.
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Jay Wommack: So, the ATA says that it costs you $12,000 to hire, acclimate, and lose a driver inside of 90 days. Now, I’ve got news for you, that number cannot be accurate, because
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Jay Wommack: I’ve been in this industry for 26, 27 years.
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Jay Wommack: And they’ve been preaching 8… To $12,000 for the last 20 years.
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Jay Wommack: So…
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Jay Wommack: A couple weeks ago, I was in a meeting, somebody said, oh, it’s at least 10,000 to 15,000. At least 10 to 15. I think it’s even more than that. And the person I was sitting next to on the airplane, when we started talking about this number, he’s got ambulance drivers, and he said, ambulance is 22,000,
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Jay Wommack: Helicopter pilots and airline pilots, because they’re transporting for medical all over the world.
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Jay Wommack: He said, $80,000 to hire, acclimate, and lose a driver, so…
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Jay Wommack: That’s not the critical mass. What’s really the critical mass is this slide.
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Jay Wommack: Really pay close attention to this slide.
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Jay Wommack: I first saw this slide with Great West.
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Jay Wommack: And Great West has, I think, this public knowledge, they have about 50 or 60,000 insured companies that they insure.
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Jay Wommack: Stan.
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Jay Wommack: They have 50,000 to 60,000 companies to insure, and so they’re pulling all this data, and they had this slide, and I asked them if they could give me the slide, and they… and they never did, so I had to create my own, but their number showed
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Jay Wommack: 60-70%, if I remember right, Of the accidents at companies Kerr.
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Jay Wommack: By the first-year employee.
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Jay Wommack: Not the first-year driver.
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Jay Wommack: The first-year employee. The employee can have 1 year, 3 years, 7 years, 10 years, 12 years under their belt driving.
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Jay Wommack: But when they come to your company, That first year.
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Jay Wommack: They are causing 60-70% of the accidents. Now, I never got the slide from Great West, and I couldn’t find 60-70%, but I could easily find 50-60%
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Jay Wommack: I want you to think about this. So, if your orientation orientation.
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Jay Wommack: And the psychology of your new employee, and how comfortable they feel at your company, Has everything to do
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Jay Wommack: With your safety department.
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Jay Wommack: Your safety takes the hit.
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Jay Wommack: When orientation isn’t done properly. Your safety takes the hit when you don’t recruit properly.
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Jay Wommack: So…
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Jay Wommack: Y’all have a symbiotic relationship with all of the other departments with your company, and you need to speak the same language.
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Jay Wommack: So, this graph is so critical.
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Jay Wommack: Once again, I’m sitting next to the…
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Jay Wommack: CEO. I mean, he was a Chief Operating Officer.
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Jay Wommack: of the hospital’s company, the Global Medical System.
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Jay Wommack: And he confirmed this is true for ambulance drivers.
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Jay Wommack: helicopter pilots.
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Jay Wommack: forklift operators.
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Jay Wommack: Doesn’t matter what your brand new employee’s doing. They are causing the accidents. Are you connecting the dots? Because this next… this next group of slides really connects it.
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Jay Wommack: I know when you look at that on the right, next to the slide on the left.
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Jay Wommack: The slide on the right.
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Jay Wommack: This is, from all of the insurance underwriters, our best guesstimate, what is, on a bell curve, the average cost per year for truck insurance
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Jay Wommack: for 90% of the companies that are out there up and down the road. And it is $18,000 per year.
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Jay Wommack: On a bell curve. That means if you look at 90%, 95% of the companies that are driving up and down the highway, they’re spending $18,000 a year for auto liability, and
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Jay Wommack: We had a boot camp this week, and we had 2 or 3 owners in the boot camp, we had, you know, 10 or so safety directors.
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Jay Wommack: We had some operating officers in there.
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Jay Wommack: And they start leaning forward when they look at this slide, and they go, that’s true. That is true.
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Jay Wommack: Insurance costs, no matter how good you are, Are jumping 12% to 48%.
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Jay Wommack: The other thing I would like to say is about half of the companies we talk to, the safety directors are not even involved in the actual conversation. No, they all pull the data together for the insurance renewal and the insurance
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Jay Wommack: Competition?
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Jay Wommack: But if you’re not getting your safety directors in the conversation with the agents and the underwriters, you are leaving money on the table.
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Jay Wommack: Safety… Has everything to do with what these rates are.
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Jay Wommack: And we have a white paper I’ll be glad to share with y’all, where we actually, during this… this… this era of rising insurance rates… I mean, we had a company sitting in there this week.
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Jay Wommack: That they had had no reportable accidents, and their rates jumped 25%.
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Jay Wommack: This is the environment we’re in because of nuclear verdicts.
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Jay Wommack: So… That graph on the left.
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Jay Wommack: Connect the dots on the graph on the right, critical mass.
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Jay Wommack: It’s gonna take…
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Jay Wommack: two, three years, but you need to target and figure out how do you get your rate down to $5,000 or $6,000 and join a captive. And there are companies out there that will help you
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Jay Wommack: walk through the captive process. We will help you get to the point where the captive will accept you and take you, and we will help you stay there, because those rates are running somewhere between $44,000 to $6,000 per year per truck.
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Jay Wommack: And if you are spending $18,000, like most of the people out there right now, you are not making as much money per mile as you possibly can. It is costing you more money, and you can’t compete with the people that are only spending $4,000 to $6,000.
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Jay Wommack: Let that sink in.
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Jay Wommack: Safety?
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Jay Wommack: Return on safety.
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Jay Wommack: your department.
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Jay Wommack: is critical. I would even take it one step farther and say that within our system, the people that you’re talking to at our company, the client success reps, and by the way.
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Jay Wommack: Our client success is second to none, because we have real people that talk to real people.
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Jay Wommack: And if you don’t think that’s not frustrating, I just got off the phone with an insurance company, and I got through that electronic maze, and poor Lydia had to hear me in the background talking to them, because I had everything live on the system before I got on the call.
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Jay Wommack: And it just goes through the electronic maze, you can’t get anybody. We have real people. Our real people make sure that your people are actually taking the curriculum. So let me talk about return on safety and action, and make sure all of your departments are on the same page, because driver turnover
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Jay Wommack: It’s not about driver turnover, it’s about how does driver turnover impact safety? And y’all saw the first thing, and that was
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Jay Wommack: the turnover rate. So… Red Ocean High.
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Jay Wommack: You have a culture.
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Jay Wommack: Culture is critical.
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Jay Wommack: I like to say this, and you hear… you hear the culture word all the time now, but the bottom line is, it’s true. I’m a football fan, so I want you to think in terms of, can you put a Miami Hurricane football player
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Jay Wommack: in a Nebraska Cornhusker costume or uniform.
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Jay Wommack: and have them perform the same way they would in Miami? The answer is no. Two totally different cultures. One’s not right, one’s not wrong. It’s just two different cultures. So when you’re hiring drivers to come to your firm, what is the culture that you’re bringing them into? And does everybody at your company back that culture?
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Jay Wommack: From the hiring practice, because here’s the one I like to hear over and over again, oh, we’re like a family, you know, it’s a… we have a family culture.
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Jay Wommack: Do you?
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Jay Wommack: Do you really?
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Jay Wommack: I’m gonna pick on JB Hunt.
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Jay Wommack: J.B. Hunt used to hire drivers. They still hire drivers, and they put him through orientation, and they… man, they give him the… they give him the new cap and the t-shirt, and Dan Baker… how many of y’all know who Dan Baker is? Dan Baker used to love to tell this story about J.B. Hunt, and he said, you know, here comes this brand new driver, and he’s… he’s been through orientation, and he’s happy as he can be, and he gets his first truck, and he’s out there, and he’s driving down the road, he pulls in that first truck stop, he jumps out.
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Jay Wommack: he’s got on that brand new ball cap, and he’s got on that t-shirt, and it’s all brand new, and the old… there’s 3 or 4 old-timers from J.B. Hunt sitting over there at the diner, and they see him walking, and they say, hmm.
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Jay Wommack: We can tell by your hat and your shirt that you’re brand new at J.B. Hunt, and then that proud young man goes, yes, I am, but…
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Jay Wommack: They say, well, come on over here and let us tell you how it really is at JBU.
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Jay Wommack: Yeah, that’s not just playing out at J.B. Hunt, that’s playing out at almost every company across the spectrum, and there’s 400,000 DOT numbers out there, and there’s 400,000 companies out there talking about how they’re so big in family values, but are you? Are you really living up to it? Does your culture back that? Because that’s what’s causing turnover
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Jay Wommack: If you mislead people bringing them in.
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Jay Wommack: Now, here’s the communication gap. The CEO of the company says, I got empty trucks, I need them filled.
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Jay Wommack: The safety guy says, I can’t take that driver. And the recruiting guy says, but I’m getting chewed on about not having all these trucks filled with drivers.
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Jay Wommack: You see where the disconnect’s coming in?
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Jay Wommack: So, you can’t have just a standard orientation if you want to keep drivers and cut down your accident rate in that first year.
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Jay Wommack: You’ve got…
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Jay Wommack: To improve the orientation, make sure psychologically they feel at home, they feel comfortable, they know where accounting is, they know if they have a problem who to go to, they know where the bathrooms are, they know where the break room is, they know what the standard procedures are at your company.
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Jay Wommack: Make sure they are embedded in your company, in your culture. You will have less turnover, and you will have less accidents.
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Jay Wommack: Promise you.
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Jay Wommack: The numbers bear it out. 188 million training sessions bear it out.
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Jay Wommack: Dispatcher training. What does that have to do with it? Has everything to do with it.
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Jay Wommack: You see.
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Jay Wommack: Employees don’t leave companies, they leave bad conversations, they leave bad managers. If you’re not tracking your dispatch or retention numbers, you need to.
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Jay Wommack: The best companies are doing that. Are you train… for lack of a better term, are you training your dispatchers on dispatcher training, on how to be nice? Dale Carnegie, how do you… how are you nice? How do you be nice?
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Jay Wommack: Can’t believe we have to train people to be nice in this world, but you do.
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Jay Wommack: So, we rolled out 3 years.
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Jay Wommack: 150 sessions of dispatcher training.
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Jay Wommack: and track the numbers, teaching them how to be nice. Why? Because truck drivers communicate with dispatchers. It’s even worse today, because in the old days, they would actually talk to them. Today, it’s pound on the electronic maze and send out, and if you don’t put a smiley emoji, or a happy face, or a ha-ha-ha behind it.
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Jay Wommack: The driver takes it the wrong way, they can take any way they want to.
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Jay Wommack: And they can find another job.
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Jay Wommack: Today, At another company.
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Jay Wommack: See where I’m connecting all the dots?
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Jay Wommack: Your safety department Is the key to profitability.
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Jay Wommack: Because if you can reduce turnover.
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Jay Wommack: If you can do all of these different things, you also are living at the whims of the other departments.
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Jay Wommack: They have to be trained to y’all’s standards, to your culture.
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Jay Wommack: If you do that, you will see profitability go up. You will make more money per mile, or if you’re a private fleet, you’ll spend less money per mile.
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Jay Wommack: The 401K.
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Jay Wommack: This slide is fascinating to me.
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Jay Wommack: I’ve made this presentation to over 1,200 people.
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Jay Wommack: I’ve only had 3 people that could answer this question. This week, nobody in the room could answer the question.
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Jay Wommack: What is the participation rate of your 401K?
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Jay Wommack: Why is it important? Why should you educate your people on 401K? Why should you do that? Because 35% less likely to leave your company.
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Jay Wommack: And you can say, well, it costs money to put them in a 401K. It costs more money
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Jay Wommack: to have them cause accidents with the first-year drivers. It costs more money
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Jay Wommack: To hire, acclimate, and lose that driver in the first year.
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Jay Wommack: Think about this slide. Are you educating them?
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Jay Wommack: We are rolling out a brand new series available to all of our people to talk about getting people in the 401K and what they can do. You can take a young person and tell them, quit job hopping. Put them in the 401K, and they can grow… your drivers can be millionaires by the time they retire. One step farther.
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Jay Wommack: You know, Project 61, if you haven’t heard of Project 61, take a look at it. Project 61 is talking about the health and longevity of your drivers.
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Jay Wommack: We’re gonna be the first system that puts all of their content on the system.
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Jay Wommack: Because the health and longevity of a truck driver is 12 to 14 years less than the average American.
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Jay Wommack: Oh, by the way, healthier truck drivers have less accidents.
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Jay Wommack: So… Do you see where I’m connecting these dots between safety, In the financial well-being, their health.
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Jay Wommack: How you hire them, how you acclimate them, how you bring them into your company, how you treat them.
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Jay Wommack: It’s the people side of trucking, as Dan Baker used to say. All of these things add up, and if you… you’re spending money on training now, why not just go ahead and spend the money where it really matters? Let me jump back to another slide real quick. This is interesting.
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Jay Wommack: This is the slide that most people on safety don’t really like to pay attention to, but this is the slide that the recruiting department loves, and HR loves.
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Jay Wommack: All human beings.
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Jay Wommack: You can change your culture with this slide, by the way. All human beings have the same human needs. They have the same six needs. Now, we rank them differently, certainty, uncertainty, significance, love, connection, growth, giving.
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Jay Wommack: You know, think about this from this standpoint.
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Jay Wommack: If you’re a family-oriented company, then you’re talking about Giving people certainty.
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Jay Wommack: You’re talking about giving them love and connection, growth. So what are the top 3 at your company? What do y’all value the most?
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Jay Wommack: This works in a big way, because think about a marriage.
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Jay Wommack: If you have somebody who likes to jump out of airplanes.
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Jay Wommack: And someone else whose number one is certainty?
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Jay Wommack: That marriage is not gonna last.
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Jay Wommack: So, think about this as your culture.
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Jay Wommack: it’s not good or bad, it’s… it is what it is. What is your culture all about? So, as opposed to advertising, you know, more miles per month, you might say, okay, if somebody’s out for certainty, we’re going to guarantee you 8,300 miles per month, even though you’re averaging 9,200. If you say you’re going to guarantee 83 and they always come in higher than that.
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Jay Wommack: They’re joining you because of certainty.
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Jay Wommack: If that’s your number one. So…
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Jay Wommack: HR departments love this slide. Recruiting departments, every time I go somewhere and they’ve seen this slide, they bring it back up, and they say this is the slide that changed their trajectory of their recruiting department.
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Jay Wommack: So, don’t take my word for it, we have a case study that talks about what’s happened. This company, Logistics Warehouse, was on the verge of having their insurance canceled. They were panic-stricken. We had a company just like that this week at our boot camp. The owner of the company brought in 3 different people with him.
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Jay Wommack: Because they’re on the verge of losing their insurance, because of accidents, because of lack of attention to detail, because of certain things like
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Jay Wommack: Shopping too many agents and too many underwriters for your insurance. That’s a different story entirely.
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Jay Wommack: So, Logistics Warehouse, The company that was in there this week.
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Jay Wommack: God, you just can’t help but feel sorry for them. You can’t help but feel… and so they’re in there now, they’re just starting with us, and we will help them. We will help them get their insurance, we will help them lower those costs over the next few years, and Logistics Warehouse case study.
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Jay Wommack: They had a 0% increase in their premiums, and they went to a captive in just 5 years, dramatically improved their profitability. Case study, details matter.
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Jay Wommack: There’s no magic in magic, it’s details. That was a Walt Disney quote, and I love that quote.
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Jay Wommack: All I’m asking you to do, our marketing people tell me, you know, we have an outside marketing firm, they say, oh, well, I’m like, you can’t use that slide, everybody uses Think Different. Okay, well then look at it differently. You know, redeploy the concept.
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Jay Wommack: Think in terms of make your safety capital productive.
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Jay Wommack: Don’t just say, I gotta spend money on safety.
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Jay Wommack: Think, oh, good.
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Jay Wommack: I get to spend money on safety, because I know I can turn that dollar into a 100 to 1 return, or I can turn it into at least a 30 to 40 to 1 return.
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Jay Wommack: We can look at your line items on your department, your P&L, and your balance sheet, if y’all want to do that, and help you take it to the next level.
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Jay Wommack: Nobody else does that. That’s what makes us number one in safety, return on safety.
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Jay Wommack: Make your capital productive.
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Jay Wommack: Now, here’s the biggest problem most companies have.
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Jay Wommack: Execution.
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Jay Wommack: That’s the biggest problem we all have.
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Jay Wommack: I want you to think about this.
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Jay Wommack: The difference between what is and what ought to be.
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Jay Wommack: What is?
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Jay Wommack: Yeah, I’m 20 pounds overweight. What ought to be? I ought to be 20 pounds lighter.
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Jay Wommack: It’s execution. I know what to do.
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Jay Wommack: Eat less, work out more.
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Jay Wommack: The difference between more profit per mile, And losing money.
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Jay Wommack: You know, we ought to be making money in this industry, not… Trend water, not… Hopin’…
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Jay Wommack: And the difference is execution. And the difference is the behavior of your employees, whether it’s your drivers.
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Jay Wommack: Your accounts receivable, your sales, your dispatchers, your maintenance department. I haven’t even talked about maintenance.
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Jay Wommack: We haven’t talked about it. We poured through… we poured through the logbooks, looking and going, okay.
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Jay Wommack: How long does it take a mechanic to repair a transmission?
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Jay Wommack: If these mechanics are taking 6, you know, 6 additional hours, that costs our company money.
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Jay Wommack: If these are doing it an hour and a half less, and they’re doing a great job of it, model them. How are they doing it?
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Jay Wommack: And train the others, and become more efficient.
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Jay Wommack: We can look at almost any line item at any company and use behavioral change concepts to improve it.
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Jay Wommack: Execution is what we do best.
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Jay Wommack: That’s why we have client service people that actually pick up the phone and call you. I can tell you this.
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Jay Wommack: I can guarantee you, beyond a shadow of a doubt.
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Jay Wommack: If you will follow our protocol, And deploy minimum.
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Jay Wommack: two assignments a month, and you get 90-plus percent of your people to use that and do it. We have the records.
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Jay Wommack: It will dramatically improve your profitability and your safety.
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Jay Wommack: And if you’ll improve your safety, definitely. And if you target the proper line items, and you connect the dots, it will improve your profitability.
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Jay Wommack: And I will guarantee that, because I’ve seen the numbers.
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Jay Wommack: I know what it will do.
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Jay Wommack: I’m not going to enable you to have a check-the-box system. Our company is proactive. Our client service picks up the phone.
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Jay Wommack: And they act kind of like…
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Jay Wommack: The mother of a bunch of boys, and they go.
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Jay Wommack: Tony, people aren’t using the system.
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Jay Wommack: If you want to see the results, you need to be using the system.
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Jay Wommack: Don’t take excuses, make them get on.
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Jay Wommack: Pay him to do it.
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Jay Wommack: We’re talking about less than an hour a month of training to dramatically change the results.
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Jay Wommack: Nobody else does that.
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Jay Wommack: Yeah, what we’ve gotten into nowadays is all this conglomeration of, oh, all of our equipment’s under one umbrella, and blah blah blah, and all that good stuff. That has cost you more per mile, and it’s cost you your safety records. And if you don’t believe me, look at the insurance rates.
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Jay Wommack: Insurance rates are jumping 12 to 50%, 48%.
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Jay Wommack: Every year, even for good companies. And I’m telling you, there’s something you can do about it.
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Jay Wommack: So, it’s time to execute.
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Jay Wommack: The question is basically, free trial.
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Jay Wommack: Oh, Lydia. Lydia, I’m gonna let you jump in here and talk about this. This is our poll now.
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Lydia Wommack: Sure, yeah. Jay, thank you. So, yes, anyone who’s interested in taking a look at our platform or talking with us about areas that would be beneficial to target for your operation, because, you know, most fleets are going to have similar needs, but every company is unique, and we love taking a closer look. We start with pulling a fleet safety analysis report, pull your CSA data to look at the violation trends.
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Lydia Wommack: Because that’s just a simple place to start and quickly deploy, but then we love to have a conversation. There’s a questionnaire that we can go through to uncover some top areas to improve. You know, our bread and butter is certainly safety, but a lot of these areas also hit
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Lydia Wommack: like Jay mentioned, HR, recruiting, maintenance, other operational teams, so…
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Lydia Wommack: We can take a look at where we can deploy training across the company to really see an impact on the bottom line, and that’s, you know, in today’s day and age, that’s what it’s all about, is making sure we’re staying in the black so we can keep operating
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Lydia Wommack: keep coming to work every day and doing what we do. So, if you’re interested, there’s a poll. Please, you know, give us a shout, let us know, and we’ll reach out. If you don’t, that’s fine. We’re going to send everybody the replay of this, so you can take a look when it’s quiet and give it some thought yourself, and I’ll likely send around the Logistics Warehouse case study Jay mentioned, because it’s really straightforward. You know, nothing that we did with them was particularly
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Lydia Wommack: difficult. It just took a little effort, you know? It was… it was small changes that had big impact over time, and it takes time and consistency to get anywhere. You know, ask your trainer, ask your coach from, you know, college or high school ball, like, you’ve got to show up every day and do the work, and that’s when you’re going to see the results and be the winner. So, we’d love to take a look at you. I had a question in chat, so let’s look. The content only in
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Lydia Wommack: English, or do you have French versions, too? So all of our content is spoken in English. We do have captions that you can turn on for the content. I think the translations have been done in Spanish. I will check on French and let you know, but it would be very quick to get everything captioned in French if we don’t have that. We’ve done some other one-off languages, too, as requested.
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Lydia Wommack: And I think rolling out pretty soon, we’ll have the full system translated into other languages well, so that’ll be based on your browser settings. It’ll just automatically convert. That’s not there yet, but rolling fairly soon.
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Jay Wommack: Also, my phone number’s down there at the bottom of the screen, 903-244-2192, 903-244-2192, all answering questions.
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Jay Wommack: Text me, call me, love to talk to you. Be sure to leave a voicemail, because we all get so many scam calls nowadays that it’s… it’s ridiculous, but be sure and leave a voicemail. I listen to all my voicemails, and I do return phone calls, so…
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Jay Wommack: That is my real number, 903-244-2192. You know, we are… we are passionate about safety, we’re passionate about profitability for companies, so…
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Jay Wommack: Yep. So there it is, Lydia.
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Lydia Wommack: Wonderful. Everyone, thank you. Jay, thank you very much, and we appreciate starting the day with you. Have an awesome Friday and a great weekend. Thanks.
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Jay Wommack: Thank you.
This webinar, hosted by Lydia Wommack, explores how fleets can transform safety from a perceived expense into a measurable financial advantage. Lydia opens the session by discussing rising operational costs across the trucking industry, including insurance premiums, lawsuit exposure, and increasing technology expenses. The primary speaker, Jay Wommack, CEO and Founder of INFINITI Fleet Safety Training, shares insights from more than 26 years of industry experience, supported by data from over 188 million training sessions delivered to more than 3.5 million employees across 5,000 companies. The discussion focuses on the concept of Return on Safety Training, demonstrating how targeted behavioral training can reduce losses, improve operational efficiency, and generate measurable financial returns for fleet operations.
• Return on Safety Training Defined
Return on Safety Training is calculated by measuring reduced operational losses and improved efficiency compared to the investment in training programs. This framework helps fleets link safety initiatives directly to financial performance and operational metrics.
• Employee Behavior Drives Risk and Profitability
Driver behavior is both a fleet’s greatest asset and its greatest liability. Proactive behavioral training programs can significantly reduce accidents, claims, and operational disruptions.
• Micro-Training Improves Behavioral Change
Short, frequent training sessions lasting two to three minutes, delivered weekly or bi-weekly, are more effective than traditional long training programs. These repeated reminders reinforce safe behaviors and increase retention among drivers.
• Fuel Efficiency Training Produces Major Financial Gains
A case study highlighted a fleet of 1,400 trucks that improved fuel efficiency by 13 percent after implementing behavior-based training modeled on their most efficient drivers. Even generic training programs averaged 3 percent improvement across fleets, translating into significant cost savings.
• First-Year Employees Drive Most Accidents
Industry data shows that 50 to 70 percent of fleet accidents involve employees in their first year with a company, even if those drivers already have prior experience. This highlights the importance of strong onboarding, orientation, and early safety training programs.
• Safety Directly Impacts Insurance Costs
The average fleet insurance cost is approximately $18,000 per truck per year, with increases ranging from 12 percent to nearly 50 percent annually in some cases. Strong safety performance and documented training programs can help fleets qualify for lower-cost insurance structures such as captives.
• Company Culture Influences Safety Performance
A strong safety culture begins with recruiting drivers who align with company values and reinforcing those values through orientation and ongoing training. When culture, leadership, and safety departments align, fleets experience lower turnover and fewer incidents.
• Dispatcher and Management Training Matters
Driver retention is strongly influenced by communication and management relationships. Training dispatchers and supervisors on effective communication can reduce driver turnover and improve operational stability.
• Employee Retention Supports Safety Outcomes
Programs such as financial education and retirement benefits can increase driver retention. Employees participating in company retirement plans are 35 percent less likely to leave, which reduces the risks associated with inexperienced employees.
• Execution Determines Success
The biggest gap in most safety programs is not knowledge but execution. Consistent training participation and accountability across departments are critical to achieving measurable results.
The webinar demonstrates that safety training should no longer be viewed simply as a compliance requirement. When strategically implemented, Return on Safety Training becomes a powerful operational strategy that influences fuel efficiency, driver retention, accident reduction, insurance costs, and overall profitability. By focusing on behavioral change, continuous micro-training, and strong organizational culture, fleets can transform safety from a regulatory obligation into a measurable business advantage.
Ultimately, fleets that invest in structured safety training programs are not just protecting drivers and assets. They are building a stronger financial foundation. Companies that treat safety as a profit driver rather than a cost center position themselves to reduce risk, improve efficiency, and achieve long-term operational success.
What is Return on Safety Training in the transportation industry?
Return on Safety Training refers to the measurable business value that transportation companies gain from investing in driver safety training programs. Instead of viewing safety training as just a compliance requirement, fleets can measure the impact through reduced accidents, improved fuel efficiency, fewer claims, and lower insurance costs. When drivers consistently receive structured training, their behavior behind the wheel improves, which leads to fewer incidents and less equipment damage. Transportation organizations such as trucking fleets, school bus operations, and municipal vehicle departments can track these improvements across multiple operational areas. The concept demonstrates that effective safety programs not only protect drivers and the public, but also improve profitability and operational performance across the entire transportation organization.
How can safety training generate a Return on Safety Training for fleets?
Safety training generates Return on Safety Training by reducing operational losses while improving efficiency across the organization. When drivers learn safer driving habits, they are less likely to cause accidents, which lowers repair costs, insurance claims, and legal risks. Safety training can also improve fuel efficiency because drivers learn smoother acceleration, better braking techniques, and improved route awareness. Fleets that consistently reinforce safety behaviors through ongoing training programs often experience fewer breakdowns and reduced equipment wear. These improvements combine to create measurable financial returns. Instead of being viewed as an expense, safety training becomes an operational investment that improves driver performance, protects company assets, and strengthens the overall profitability of transportation businesses.
Why is driver behavior so important to Return on Safety Training?
Driver behavior is the single most important factor influencing Return on Safety Training because the majority of accidents are caused by human decision making. Even the most advanced trucks, buses, or safety technology cannot overcome unsafe driving habits such as speeding, distracted driving, or aggressive maneuvers. Safety training focuses on improving driver awareness, judgment, and defensive driving skills. When drivers receive consistent reminders and coaching, their behavior gradually improves over time. This behavioral change reduces crashes, lowers insurance claims, and protects lives on the road. Transportation companies that focus on behavioral safety training often see measurable improvements across their safety metrics, making driver behavior one of the most powerful drivers of Return on Safety Training.
How often should drivers receive safety training to maximize Return on Safety Training?
Consistent training is essential to maximize Return on Safety Training. Many successful fleets use short safety lessons delivered weekly or biweekly rather than relying on long annual training sessions. These brief training assignments keep safety topics fresh in drivers’ minds and reinforce important habits such as following distance, defensive driving, and hazard awareness. Short training sessions are easier for drivers to complete and easier for safety departments to track. Over time, these repeated reminders influence behavior and help drivers develop safer driving patterns. Organizations that maintain consistent training schedules often experience steady improvements in safety performance, driver accountability, and operational efficiency.
Can Return on Safety Training reduce insurance costs?
Yes, Return on Safety Training can play a significant role in reducing insurance costs over time. Insurance providers evaluate fleet safety records, accident frequency, and driver behavior when determining premiums. When companies demonstrate strong safety performance supported by documented training programs, insurers may view them as lower risk. Fewer accidents and claims also reduce the financial impact of insurance deductibles and liability exposure. Some fleets eventually qualify for alternative insurance structures such as captive programs that offer lower long term costs. While improvements may take time, consistent safety training can help transportation companies demonstrate risk reduction and build a stronger safety profile with insurance providers.
How does fuel efficiency relate to Return on Safety Training?
Fuel efficiency is closely connected to Return on Safety Training because safe drivers tend to operate vehicles more smoothly. Drivers who accelerate gradually, maintain steady speeds, and avoid sudden braking often achieve better fuel economy. Safety training teaches drivers techniques that improve both safety and fuel efficiency. When these driving habits are adopted across an entire fleet, the savings can become substantial. Even small improvements in fuel economy can produce significant financial benefits when multiplied across hundreds or thousands of miles driven each week. Transportation companies that combine safety training with fuel efficiency coaching often see improved operating margins while also reducing accident risks.
Why do many accidents involve first-year employees?
Many accidents occur during a driver’s first year with a company because new employees are still adapting to company policies, procedures, and equipment. Even experienced drivers must learn how a specific organization operates, including dispatch communication, routing expectations, and safety culture. Without strong onboarding and training programs, new employees may make mistakes that lead to accidents or operational disruptions. Safety training during the first year helps drivers understand expectations and reinforces safe behaviors from the beginning. Organizations that invest in strong orientation programs and ongoing training often reduce accidents among new employees and improve overall Return on Safety Training.
How does company culture influence Return on Safety Training?
Company culture plays a major role in determining whether safety training actually changes driver behavior. If safety is treated as a priority across all departments, drivers are more likely to follow safety procedures and take training seriously. Leadership support, consistent communication, and clear expectations reinforce the importance of safe driving practices. When safety culture is weak or inconsistent, training programs often become check-the-box exercises with limited impact. Transportation companies that actively promote safety values and accountability across recruiting, dispatch, maintenance, and management typically achieve stronger safety results. This cultural alignment helps maximize Return on Safety Training throughout the organization.
Can dispatcher training affect fleet safety results?
Dispatcher training can significantly influence fleet safety because dispatchers communicate with drivers daily and help shape operational expectations. If dispatchers pressure drivers to rush, ignore rest periods, or accept unrealistic schedules, drivers may feel forced to take unsafe risks. Training dispatchers to communicate clearly and respectfully helps create a supportive environment where drivers can focus on safe operations. When dispatch teams understand safety priorities and reinforce them through their communication, drivers are more likely to follow safe driving practices. This coordination between departments improves driver satisfaction, reduces turnover, and strengthens Return on Safety Training.
How does driver turnover impact Return on Safety Training?
Driver turnover can reduce Return on Safety Training because new employees typically require additional training and adjustment time before reaching peak performance. High turnover rates also increase hiring, onboarding, and orientation costs. Inexperienced drivers may be more likely to cause accidents or operational disruptions while they learn company procedures. Transportation companies that reduce turnover often benefit from a more experienced workforce that understands safety expectations and operational standards. Retaining trained drivers allows organizations to build stronger safety cultures and maximize the benefits of their training investments.
Can safety training improve driver retention?
Yes, effective safety training can improve driver retention by demonstrating that a company values its employees’ well being and professional development. Drivers who feel supported by training programs often feel more confident in their abilities and more connected to the organization. Training also helps drivers avoid accidents that could negatively affect their careers or driving records. When safety training is combined with positive communication, recognition, and career development opportunities, drivers are more likely to stay with the company. This stability helps organizations maintain experienced drivers and increases overall Return on Safety Training.
Why should safety departments work closely with other departments?
Safety departments achieve better results when they collaborate with recruiting, dispatch, operations, and maintenance teams. Each department influences driver behavior and operational performance in different ways. Recruiting determines the quality of drivers hired, dispatch manages daily communication with drivers, and maintenance ensures vehicles remain safe and reliable. When these departments align with safety goals, organizations create a unified approach to risk reduction. This collaboration helps reinforce training messages and prevent conflicting priorities that could encourage unsafe decisions. Strong interdepartmental communication improves both safety performance and Return on Safety Training.
What role does onboarding play in safety training success?
Onboarding sets the foundation for long term safety performance. During orientation, new drivers learn company policies, safety expectations, and operational procedures. A well structured onboarding program introduces drivers to the company culture and establishes clear expectations for safe driving behavior. When onboarding is rushed or incomplete, drivers may develop habits that conflict with company standards. Effective onboarding programs combine classroom instruction, practical training, and ongoing follow up to reinforce safe practices. Transportation companies that invest in strong onboarding processes often experience fewer early accidents and stronger Return on Safety Training.
How can transportation companies measure Return on Safety Training?
Transportation companies can measure Return on Safety Training by tracking key operational metrics before and after implementing training programs. Important metrics include accident frequency, insurance claims, fuel efficiency, driver turnover, and maintenance costs. Safety departments can also track training participation rates and driver behavior trends. By analyzing these metrics over time, organizations can determine how safety training influences operational performance. When improvements appear across multiple areas, the financial value of safety training becomes easier to quantify. These measurable improvements help leadership recognize safety training as a strategic business investment.
Is safety training only important for trucking fleets?
Safety training is essential for many types of transportation organizations, not just trucking fleets. School bus drivers, municipal vehicle operators, delivery drivers, and transit systems all face safety risks that can affect passengers, employees, and the public. Effective training helps drivers understand defensive driving techniques, vehicle handling, and hazard awareness. These skills reduce accidents and improve operational reliability across all transportation sectors. Regardless of vehicle type, safety training programs support safer roads, protect employees, and strengthen Return on Safety Training for transportation organizations.
What is the long-term benefit of focusing on Return on Safety Training?
The long-term benefit of focusing on Return on Safety Training is the transformation of safety from a regulatory obligation into a competitive advantage. Organizations that invest in structured training programs often experience fewer accidents, lower operating costs, and stronger driver performance. Over time, these improvements lead to reduced insurance expenses, improved efficiency, and greater financial stability. Safety training also helps protect employees, passengers, and the public while strengthening company reputation. By consistently reinforcing safe driving behaviors, transportation companies build a safer workforce and a more profitable operation for the future.
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