Grey fleet has always been a transport solution for many industries, one that was accelerated by the pandemic in recent years. With plenty of benefits, allowing employees to use their vehicles for business purposes also helps fleet managers to take charge of their fleet, but could also cause difficulty when following traditional processes.
What is a Grey Fleet?
Grey fleet vehicles belong to employees rather than the company for business purposes and travel. Grey fleet drivers drive their cars for business-related purposes and general personal use.
The main benefit of utilising a grey fleet is that it can be the perfect option for companies with minimal drivers or those that sustain low mileage. But, as drivers use their vehicles, the trouble associated with grey fleet vehicles can include risks such as collisions, vehicle maintenance and increased mileage costs.
For employees, a huge benefit is that businesses often provide a fuel expense or cash allowance to cover travel in a personal vehicle, which falls under the employer’s responsibility as a part of the grey fleet agreement.
Facts and figures
Company fleets total around 1.8 million vehicles compared to the grey fleet’s estimated 10 – 14 million, according to the BVRLA. Figures from the Government’s Energy Reform Group estimate that up to 57% of ‘at work’ mileage is undertaken by private vehicles, an impressive 1.5 billion public sector and 11 billion private sector miles per year.
Managing a grey fleet
Getting the most out of a grey fleet requires a level of management that minimises complications, improving health and safety, environmental sustainability and finances.
The Health and Safety at Work Act 1974 states: ‘’It shall be the duty of every employer to ensure, so far as is reasonably practicable, the health, safety and welfare at work of all employees.’’ The duty of care lies with the employer, regardless of the size or type of fleet.
Managing any fleet has its difficulties, and working with a grey fleet can make everything feel even more challenging. Businesses must recognise the costs, the environmental impact and the legal implications if not managed correctly. By enhancing processes, developing strategies and conducting regular checks, fleet managers can support drivers and businesses to create a better environment for grey fleets to flourish.
There are many ways businesses can manage a grey fleet and minimise risk to their employee’s safety and well-being. Here are just a few practices that companies can put in place:
Highlight responsibilities within the company
Every grey fleet needs a dedicated manager or person to take responsibility for ongoing operations. Lack of responsibility is the main reason why many grey fleets are overlooked or disregarded. Fleet managers are the likely option, but in places without HR, Health and Safety and even finance departments can develop a process for an appointed individual to follow.
Refine policies and communicate
Benchmarking a grey fleet is essential to refine best practices and policies. Asking the important driver and vehicle questions such as: what journeys are made, how long they take and how they will be managed.
Asking the right questions helps to highlight any concerns surrounding the grey fleet, for example, those with a company car could be driving far less than those in the grey fleet, making it more efficient to consider a change. Review the current policies in place and develop them based on the data gathered.
Once you have a clear policy, the most challenging step is to ensure all employees and employers know and understand the rules, regulations and best practices surrounding the grey fleet, communicating any changes or in-depth clauses can help everyone manage expectations.
Driver Eligibility
As a fleet manager, the prime responsibility is to ensure all grey fleet drivers are qualified with a valid driver’s license. Employees must ensure that their driving license is up to date with the relevant information and any driving offences factored into a risk analysis.
Managers should make a point to carry out checks annually, including driver insurance details and breakdown assistance cover, which should be organised and maintained by the driver. This data is crucial as part of the risk assessments for every grey fleet driver. Driver training can be a cooperative tool to consider for those whose driver behaviour is unsuitable or dangerous.
Moving forward with Drivetech
At Drivetech, we support companies with their grey fleet needs by providing valuable online and on-road solutions that enable the company not only to identify and track the vehicles involved but also the vehicle and driver documentation and milestone dates for insurance, MOT and road tax.
Our team help companies to be fully compliant and treat grey fleet drivers in the same way as other people who drive for work so that they can have their licences verified, undertake a driver assessment and receive driver safety training as required.
Get in touch with us today to learn more about how we can support your grey fleet.
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