Why Making Fleet Management Someone's ‘Side Job’ Is Costing You More Than You Think

Picture this: Sarah from accounts is juggling the books, handling payroll, and somehow managing your growing fleet of 15 vehicles. Sound like a smart way to save money? Think again.

The "It's Only Half a Job" Trap

We get it. When you're running a tight ship, asking your most capable employee to "just handle the fleet stuff too" seems logical. After all, how hard can it be to book a few services and renew some registrations?

Here's the reality check: Fleet management done properly is a full-time job disguised as administrative work.

What's Really Happening Behind the Scenes

• The Constant Interruption Game: Sarah's trying to reconcile accounts when Dave calls because his van's making a weird noise. Twenty minutes later, she's on hold with the mechanic, your financial reports are half-finished, and the quarterly BAS is due tomorrow. Every fleet "emergency" derails her primary responsibilities.

• The Knowledge Gap Problem: Sarah’s brilliant with numbers, but does she know the difference between a roadworthy and a safety inspection? Can she spot when a mechanic is overselling services? Does she have the time to negotiate bulk discounts on tyres and fuel? Probably not, and that's costing you.

The Employee Burnout Warning Signs:

• Working late to catch up on their ‘real’ job.

• Making mistakes they'd never normally make.

• Looking overwhelmed whenever someone mentions the fleet.

• Avoiding eye contact when you ask how the fleet's going.

The Hidden Costs You're Not Seeing

• Missed Opportunities: Your part-time fleet manager isn't tracking fuel efficiency trends, comparing service costs, or negotiating better insurance rates. These small oversights add up to thousands annually.

• Compliance Roulette: Miss one registration renewal or safety inspection because it got buried under other priorities, and you're facing fines, downtime, and potential liability issues.

• Staff Turnover: When your overworked star employee finally burns out and quits, it’d disruptive and it’s expensive! A report by the Australian HR Institute found that the average cost of hiring a new employee is estimated to range from $10,000 to $25,000 (link). Plus, you're not just replacing someone who did accounts , you're replacing someone who knew your entire fleet inside and out.

• Vehicle Lifecycle Mismanagement: Without proper attention, vehicles get serviced late, problems get worse, and replacement decisions are made reactively instead of strategically. This easily costs $2,000-$5,000 per vehicle annually.

The Business Owner's Dilemma

"But I can't justify a full-time fleet manager for 15 vehicles!". And you’d be right. Assuming each vehicle in the fleet takes up 1-hour of admin time per month, here’s what the breakdown looks like according to the number of vehicles in your fleet.

Fleet Admin as a % Job Role by Vehicles Managed

So What Are Your Options?

• Option 1: Systems Solution. Invest in proper fleet management software and training, so whoever handles it has the right tools and knowledge.

  • Pros:

    • Process improvement. Your fleet will be running more smoothly then it is now.

    • Capacity building. You will be adding to your in-house capability.

  • Cons:

    • Investment and implementation risk. You’re now entering the world of investing in tech, and there are numerous risks associated that. Not just picking the ‘right’ system, there are a host are training and engagement related risks too (link to more info).

    • Staff turnover risk. The staff member you train-up could resign at any moment; then you’re back to square one.

• Option 2: The Hybrid Model. Keep simple tasks in-house but outsource the complex stuff: compliance, vehicle procurement, strategic planning.

  • Pros:

    • Expertise, your getting advice from experts across some very specialist and complex issues.

    • Capacity building, you’ll know how to cover the basic fleet admin tasks.

  • Cons:

    • Half-way there, are you living on a prayer? You haven’t really solved the dilemma of juggling the job-role, you’ve just shifted the goal posts a bit. Your star employees are still burdened with dull and distracting fleet admin tasks. The risk of staff turnover remains.

    • Process cracks; unless all parties understand exactly who is responsible for what.

• Option 3: The Specialist Approach. Partner with / outsource to fleet management professionals who can give your fleet the attention it deserves without the fixed full-time salary overhead.

  • Pros:

    • Resources get right-sized. The resources to run the fleet automatically get ‘right-sized’ (assuming that you’re being charged per vehicle under management). Very helpful, especially if your business is going through a rapid growth phase.

    • Lower costs & overheads. The specialists should be costing you less compared to managing the fleet yourself because they’re more efficient (experience counts). They will know where to hunt for pricing discounts. And, depending upon their tech stack, they may be able to generate cost-savings by improve driver behaviour (more info) as well as optimise your tax position: FBT, Fuel Tax Credits.

    • Peace of Mind. Knowing that your fleet administration is being dealt with professionally to reduce your compliance risk and letting you focus on your core business.

  • Cons:

    • Not building capacity.You’re not building core-competency in fleet administration, is that important to you? Your call.

    • Provider risk. The outsourced fleet specialist may not be delivering to expectations. Mitigate this risk by avoiding long-term lock-in contracts. At least the you’ll have an easy way out.

The Real Question: What's your core business worth to you?

Every hour your accounts person spends calling mechanics is an hour not spent optimising your cash flow, chasing overdue invoices, or planning for growth. Every fleet emergency that pulls them away from their expertise is costing you in ways you might not immediately see.

The Bottom Line

Your business didn't succeed by doing things half-way. Your financial management isn't someone's side job. Your customer service isn't an afterthought. So why should your fleet management be?

The smart move? Recognise that fleet management is either important enough to do properly, or it's not important at all. Given that your vehicles are probably your second-largest business expense after wages, we're betting it's important.

Your star employee will thank you for letting them focus on what they do best. Your fleet will run smoother. Your costs will drop. And you'll sleep better knowing both your books and your vehicles are in expert hands.

Because trying to save money by making fleet management someone's side job isn't cost-effective, it's the opposite.

Do you own/run a growing business and not sure what to do with your fleet? Feel welcome to reach out to us.