The way your business manages its company vehicles can significantly impact productivity at both the driver and organizational levels. With 18% of companies spending over eight hours a week on manual data entry for their fleets, it’s essential to streamline this process—and there are several tools and strategies to do so.
Here’s how smart data tracking, modern tools, and fleet management services can help you cut costs and improve efficiency.
Best practices for tracking company vehicle use
If you have company vehicles on the road, follow these strategies to effectively track usage.
Track the right data
Using the right data can help your company reap many benefits, such as improving the efficiency of administrative employees who handle company vehicles, increasing tax savings for the company by deducting mileage as a business expense, and identifying underperforming employees (or employees who misuse the company's assets). Additionally, the data can help identify areas of overspending and ensure that employees use company resources wisely.
Some areas to track include:
- Trip dates: Keep an accurate record of each trip’s data by logging and organizing it under the specific date. This ensures a precise record of each time your employee uses the vehicle, holding employees accountable and reducing costs.
- Mileage: Tracking a vehicle's mileage helps to understand how far an employee went, as there’s a record of how many miles were on the car before departure and after it returned. This information can identify instances of personal use with the vehicle.
- Working hours: Similar to tracking mileage, tracking working hours will ensure employees are only using the car during business hours, not for personal use.
- Driving behaviors: Many systems track driver behavior, including harsh braking, extreme acceleration, excessive idling, speeding, and more. This data helps to detect bad driving behaviors that contribute to a vehicle's wear and tear.
- Current location and destination: As a business, tracking an employee’s location and intended destination allows you to see your vehicle’s exact location at any given moment, protecting your assets in case of theft. This data allows you to better dispatch your services and provide customers updates on where the driver is and what time they should arrive (should your business provide a service to a client).
[Read more: How to Manage Company Vehicle Usage and Maintenance]
Integrate vehicle tracking with expense reporting
Instead of chasing down employees for mileage logs, consider using an automated system that feeds accurate trip data straight into mileage reimbursements. This results in quicker payouts and fewer manual errors.
You also get precise, verified mileage records for tax purposes and can link tracking data directly to fuel and maintenance expenses. This gives you detailed insights into how much time vehicles and drivers spend on specific projects, allowing you to bill more accurately and better manage your resources.
Use a fleet management service
A fleet management service allows businesses to track and gain insight into their vehicle fleets and employee behavior through a comprehensive system—taking most of the guesswork and manual labor out of the process.
Here’s what you should look for in a fleet management service:
- Hardware and installation: Plug-and-play hardware is a common feature to look for, as it takes less than 10 minutes to install and doesn’t require the help of a professional. Generally, you can install this hardware by connecting its two wires to the vehicle’s battery.
- Driver safety and performance: This feature allows you to track your employees’ driving behaviors, flag unsafe habits, and hold drivers accountable for their actions. It helps your company avoid liability by ensuring your employees are driving responsibly and not endangering others on the road or your company's assets.
- Vehicle maintenance tracking: This feature can track odometer readings, fuel levels, battery voltage, coolant, engine temperatures, and more to identify when your vehicle requires maintenance. With this data, you can ensure your vehicles are safe for employees to operate and are being properly maintained to improve their longevity.
- GPS tracking: GPS tracking is a must to determine where your company car is at all times, as well as its mileage. Some tracking software offers features such as geofencing that can create a virtual boundary in which an employee triggers a response when traveling into a restricted zone.
- Alerts and reports: Some services give real-time safety alerts and driving reports (which you can customize based on your business’s needs) to better understand how and when your employees operate company vehicles. This can help pinpoint areas for improvement and identify where you can cut costs—such as omitting needless stops or revising poorly planned routes.
Always inform employees in writing that company vehicles are equipped with tracking devices.
Best GPS tracking tools for small fleets
With the right resources, managing a small fleet doesn't have to be complicated. Here are some top GPS tracking tools for small businesses to consider:
Azuga
Azuga provides powerful fleet tracking with a focus on driver safety and efficiency. It offers precise GPS tracking, vehicle diagnostics, and even driver coaching features to help improve driving habits and reduce unnecessary costs.
Force Fleet Tracking
Force Fleet Tracking provides a simple yet effective GPS solution. Its plug-and-play devices are easy to install, and the platform offers real-time vehicle location, health monitoring, and driver safety scoring. Dashcam options for enhanced monitoring are also available.
Matrack
Matrack stands out for its affordability and features like real-time tracking and AI-powered reports. Users also like that this service requires no contracts. Additionally, it provides instant alerts for various events, such as ignition on/off and speeding, giving businesses constant control and monitoring of their vehicles.
Workyard
Workyard offers a workforce management and GPS fleet tracking solution. It excels in precise real-time GPS tracking and integrates features like time tracking, job scheduling, and cost management, making it ideal for construction, field services, and property management businesses. Plus, its mobile app allows for easy tracking without additional hardware.
[Read more: 10 Fleet Management Tools for Small Businesses]
Legal considerations for employee vehicle monitoring
If your small business decides to implement fleet tracking, you’ll also need to consider the legal implications of such tools, both federally and in the states where you operate.
Here are key considerations to keep in mind:
- Employee consent and notification: Always inform employees in writing that company vehicles are equipped with tracking devices. While only some states require it, obtaining explicit written consent is always a best practice.
- Company-owned vs. employee-owned vehicles: Generally, businesses have more leeway to track company-owned vehicles. Focus on tracking the vehicle, not the individual, and emphasize the business purpose for doing so.
- Clear policies: A comprehensive GPS tracking policy should outline the purpose of tracking (e.g., efficiency, safety, asset protection), what data is collected, when tracking occurs (ideally during work hours only), and how data will be used, stored, and protected.
- Data usage and privacy: Limit the use of tracking data to legitimate business purposes. Avoid using data to monitor employees during non-work hours or for purposes unrelated to their job duties. Ensure data is stored securely and access is limited to authorized personnel.
[Read more: How to Write a Company Vehicle Use Policy]
How to introduce fleet tracking into your organization
When you introduce fleet tracking, it’s important to explain why it’s being implemented—for example, because it enhances safety, improves efficiency, and protects company assets. Distribute your policies clearly, discuss them thoroughly, and provide opportunities for questions.
In your communications, show employees how tracking can positively impact them, such as:
- Improved safety through faster emergency response.
- Better route planning to reduce stress and wasted time.
- More accurate timekeeping for payroll.
- Fairer workload distribution.
Finally, dedicate time and resources to properly training employees on the new system. Ensure that they understand its features and how to use them, and provide ongoing support for any questions or issues that arise.
Miranda Fraraccio contributed to this article.
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