As more small businesses look for ways to reduce expenses, one means by which to do just that has gotten more attention in recent years.

By installing GPS technology on company vehicles, employers not only have better oversight over their employees, but they can also reduce expenses when it comes to gas prices, wear and tear on company vehicles, insurance premiums, and more.

For those not up to speed on GPS, the global positioning system device simply helps an employer monitor the location of each company vehicle, in addition to providing turn-by-turn directions for getting to destinations quickly and without unnecessary detours. By using a GPS, the employer can put together a history of each employee’s actions when using company  vehicle, along with cutting down on costs and deterring theft.

Worker privacy can be an issue

One issue that has arisen with the usage of GPS devices by some employers is worker privacy. While there are no state or federal regulations on the books that outright prohibit employers from using GPS devices, some employees are likely to see the devices as intrusive.

Typically the best way to go about instituting a GPS program at your place of business is by being up front with employees as to why you are doing this and how it will work. Put everything in writing so that both sides have a full understanding of the reasoning behind the GPS devices in company vehicles and how things will work. If you fear that this move will signal a lack of trust issues with your workers, potentially leading to dampening the relationship between you, explain some of the bullet points below:

  • Better operating costs – When your business goes the GPS route, you save more money as a company. There are myriad of  savings, including fuel prices and reduced insurance premiums. For those not aware, many insurance companies will provide you with better coverage rates when using fleet tracking software.
  • Eliminating paper trails – Another bonus of fleet tracking software is that your business can reduce the paper load that it is carrying. GPS allows your company to use a digital records in order to oversee fuel costs and expenses put toward maintenance of vehicles.
  • Keeping employees honest – While you probably will not be terribly upset if an employee or employees go a few miles over their intended targets when using company vehicles, you will have cause for concern if the mileage amounts are greatly mismanaged. With a GPS program in place, you can discover if someone was using the company vehicle for extended personal usage, allowing you to sit down and discuss the issue with the worker.
  • Tracking down stolen property – With vehicle theft always a possibility, having GPS deployed on your company vehicles will assist authorities in tracking down your property. Using satellite technology, authorities can hone-in on the vehicle, giving you a better chance of locating it before any possible damage can occur.
  • Better customer response time – Having GPS installed on company vehicles also improves the ability of your employees to get to client meetings in a timely manner. GPS will help your employees to their appointments on time, meaning clients aren’t left waiting while your employees are lost or stuck in traffic.

With a GPS program in place at your business, you can efficiently manage your employees’ time behind the wheel, leading to better operating expenses for your company.

AvatarDave Thomas

With 23 years’ writing experience, Dave Thomas covers business topics for a variety of websites.