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Lowdown

Tow Boss The Mechanics of PPM

By Randall C. Resch

Operations Editor Randall C. Resch is a retired California police officer and veteran tow business owner, manager, consultant and trainer. He writes for TowIndustryWeek. com and American Towman, is a member of the International Towing & Recovery Hall of Fame and recipient of the Dave Jones Leadership Award. Email Randy at rreschran@gmail.com.

Author’s Note: This narrative is not legal advice but written as a basis of training only. Tow business owners should seek legal advice regarding the content of the company’s Policy and Procedure Manual.

A policy and procedure manual (PPM) increases a company’s long-term stability, safety and well-being.

Atow company arrives at a private residence to transport an SUV to a mechanic’s shop. As the operator positioned his carrier, the customer reportedly (physically) pulled the vehicle from the garage. It rolled down the sloped driveway, snagged the customer’s arm and dragged him across the street. The incident resulted in catastrophic injuries after the vehicle pinned him against a neighbor’s house.

During pre-court depositions, there was focus asking if the company had a policy and procedure manual, safety meetings, and, did the operator have formal industry training? The company’s owner allegedly stated he’d been in business seventeenyears, taught his drivers in-house and didn’t have a policy and procedure manual.

GOALS AND DIRECTION

Without rules guiding the proverbial ship, companies experience orchestrated chaos in day-to-day operations. There are some that provide employee’s direction as to what expectations are required by company management. Does your business have written rules to govern your employee’s actions?

Exemplary service relates to best practices provided to customers served. It’s that catalyst that influences customers to choose your company for future service. Sometimes the best business advertising comes from satisfied repeat customers. Industry successes are realized when companies operate as a unified team inreaching goals written by its founders.

The preferred document of choice is called a “Policy and Procedure Manual” (PPM) citing company guidelines, rules and regulations. PPM’s are directives that define day-to-day administrations, operations, and employee actions where behaviors, attitudes, and reputations are demonstrated, and deployed.

Savvy tow owners agree that industry successes don’t always come from ◀

owning the newest fleet, sporting fancy paint schemes, or, having the lowest rates; they’ll tell you success lies mostly in the actions, abilities, and personalities of their employees. Fact: The wrong employee can produce catastrophic results; however, let’s agree that professional and motivated employees are crucial to business success.

SET THE RULES

A company’s PPM sets-the-tone and lends clarification to its goals, visions, work statements, ethics, and disciplinary actions. A PPM increases a company’s long-term stability, safety and well-being of its employees.

In the company’s best interests and safe work environment; owners have responsibility in developing PPM’s to addresses its intentions, rules, and procedures while addressing the company’s platform and purpose. While PPM’s should categorize and identify topics, each category should reflect the best interests of the company and employee’s alike.

Consider topic headings that identify, define, and describe the businesses; • Visions and operating principles • Missions and goal • Services and products • Safety and risk management • Job descriptions, tasks, work expectations • Employee administration (pay, vacation, benefits, annuity program(s), medical, etc.) • Exemplary performance / rewards • Disciplinary processes for unacceptable behaviors, ethics, non-compliance Base-line for continuous improvements, growth, long-term successes Foundation to develop long-term relationships

THE RIGHT STUFF

PPM’s should never be “cookiecutter” design, but should fit the company’s personality. While PPM’s can be based on Internet templates, narrative should be specific to the businesses niche and tasks served. An all-inclusive manual includes topics typical to the towing and recovery industry as well as HR considerations in your state. Here are examples of industry specific topics:

Equal Opportunity Statements:

Equal opportunity statements are typically located in the manual’s opening pages. An EOS statement invites equal fairness to the workplace for all employees ◀

with regard to race, religion, color, sex, national origin, age, disability, handicap or veteran’s status. This policy affirms commitment to the principles of fair employment, illegal discrimination, and no reprisals or harassment against employees regardless of position or status.

At Will Statement: Perhaps the most challenging sub-topic in the PPM explains where employees are generally hired “At Will”. Employees should understand they could be dismissed at the company’s will, with, or without cause; also allowing employees to equally terminate their employment. If your state allows “At Will termination” an “At Will Statement” should be signed by employees with a copy placed in their files.

Job Descriptions: Identify duties (obviously, different tasks for each position). Descriptions should include; tasks, pay rates, work hours, schedules, or, further details describing the position. A thoroughly written job-description is the company’s counter to employees bearing that “it’s not my job” mentality.

Safety Mandates: Employees shall adhere to city, state, OSHA, and federal laws regardless of position.

Issued Equipment: When companies issue uniforms, jackets, rain gear, invoice boxes, lockout tools, flashlights, PPE’s, etc., are they issued at no-cost? However, if the company purchases or rents equipment/clothing, are those items collected when employees leave the company? PPM’s should include itemized narrative of what’s issued, the turn-in process, and, whether or not employees pay for lost or damaged equipment/clothing.

Industry Specific Training:

When positions require specific training, does the company deduct training costs from employee pay? Is training elective versus required by law? If OSHA requires a forklift operator’s certificate, does the company charge the employee for operator training? Can an employee pay for specific training on their own and have costs reimbursed?

Can the company pay for initial training costs at no-cost to the employee, if, the employee remains for an agreed length of time? If the employee leaves prior to that time, can the company deduct training costs from their final pay? Is that type of deduction a contract that’s allowable by state law?

Damages or Lost Monies:

When operators damage vehicles, or, if monies are lost by office staff or operators, can the losses

be deducted from the employee’s pay? Are damages or lost monies more of a performance issue and deductions can’t be taken?

Dereliction to Duty: Where there’s need to dismiss problem employees for repeated violations, are they terminated for single or multiple violations? In the PPM’s performance category, a statement should include “Dereliction of Duty”; a clause that relates to poor performance and documented disciplinary actions. This area best describes employees who can’t or don’t live up to company expectations.

Take-Home Vehicles: Do positions require take-home tow trucks or other company vehicles? Who’s responsible for the vehicle’s up-keep, fuel, insurance, and security? Are employees considered on-call workers who are subject to commission or hourly pay? Can the vehicle be used for personal errands?

The “Excessive Idle Policy”:

What rule defines tow truck’s left to idle noting an unoccupied truck can lead to theft, wasted fuel, and noise complaints. Specify how long trucks can idle when parked.

Accessibility to Management:

Employees have a right to access management when there are issues involving work, family, or their personal lives, especially if it affects their abilities, ethics, and productivity. The PPM should explain how-to access management via the company’s Open Door Policy.

Right to Change Statement:

PPM’s are “Living Documents.” As businesses grow and change, a Right to Change Statement defines the company’s sole right to make changes to operations, workpractices, guidelines, workforce, fleet, etc., without employee permission. Narrative should explain how notifications are distributed.

Customer Service Statement:

Reiterate your company’s commitment to quality and unparalleled customer service. This

Exemplary service relates to best practices provided to customers served.

statement invites and encourages employees to serve beyond-thenorm while making mention of award and or recognition.

Suggestions & Comments:

Invite employees to make suggestions, comments, and positive-gripes without fear of reprisal. Provide a suggestion box for employees to submit thoughts and ideas. Narrative should explain what happens to their submissions and what follow-up steps shall be taken.

BARK & BITE

PPM’s are sometimes confusing based on its narratives, but it’s better received when written with easy-to-read information that’s not threatening or intimidating. You’ll find employees respond better to directives that aren’t overbearing; allowing them to feel they won’t be unfairly dismissed if they accidentally slip-up during the course of employment.

While it’s easy to write policy highlighting the company’s nuts and bolts, over-bearing presentation causes employees to form negative attitudes towards management. Accordingly, employees are expected to comply with company regulations so to avoid an otherwise unsafe, free-forall like environment.

Building non-threatening narrative is accomplished by including descriptive words and phrases like, welcome to the Varsity team, team-effort, positive performance, promotability, longterm employment, etc. Positive phrases are less aggressive than reminding employees that, “If ya’ screw up, yer’ gone.” Remember, guidelines are intended to direct while discipline is meant to counsel and mold employee behavior and actions. To threaten termination only produces negative behaviors.

I DIDN’T KNOW

It’s the employee’s responsibility to understand the manual’s contents. Just because employees are required to read and understand the company’s manual, chances are, few employees do so thoroughly. Encourage them to take it home and review it during the first two-weeks of employment, or, set time aside allowing them to read and question the manual during orientation.

At week two’s end, schedule an informal meeting to answer questions or clarify wording. Ask if they understand the PPM’s contents and solicit a “Yes” or “No” response. I recommended you include an Employee Acknowledgement Statement when the employee indicates they have no questions and understand its contents. On their understanding, the employee signs and ◀

dates the acknowledgment form. Provide them a copy of the signed statement placing the signed original in their file.

The PPM should clearly identify the importance of the company’s rules, regulations, goals, practices, benefits, and overall expectations pertaining to their positions and the manner they serve the company. A signed, Acknowledge Statement, has sole purpose of avoiding the proverbial, “But, no one told me”, dialogue common to employee’s who are subsequently dismissed.

FINAL NOTE:

The contents of any manual are a waste if they don’t comply with state and federal employment laws. Notably, your company’s manual is that document to setthe-tone at an EDD hearing. While most administrative judges are sympathetic as to why an employee was dismissed or quit, by producing your legally correct, well-written, all-inclusive manual along with the employee’s file, that’s your best evidence to justify the employee’s dismissal.

Remember, in all cases big and small, the Plaintiff’s attorney will aggressively pursue the company’s PPM and attack the operator’s training. While it’s safe to say, some rules are better than no rules; having no formal training in today’s legal environment can weigh heavily against tow companies for preventable actions.

It’s recommended to have your company’s attorney review your manual to ensure its contents are inaccordance to state’s employment laws. And, as it regards your company’s vicarious liability, if you have no employee manual; you’re guaranteed to be on the losing-end of any lawsuit.

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