How employee job satisfaction has changed
August 15 2022 - In the past two years 'the great resignation' has taken the job market by surprise and left many HR and recruitment departments scratching their heads over why so many employees seem to be coming and going. This has spurred an increased focus on employee job satisfaction and compensation package to curb employee turnover.
One innovative way to achieve this is through a company car. A company car is usually a vehicle that an employer provides to an employee for both work and personal use. This can be the case if they frequently travel for work or if they have important positions inside the organisation. Given the rising cost of living, increasing car prices and inflation, many prospective employees may find company car incentives to be an alluring benefit. In this post, we will examine how company car incentives, key advantages, and viability are as a recruiting and employee-retainment tool.
How company car schemes work
In the past, a firm that provided company cars would often purchase a fleet of vehicles in large quantities and give the keys to any employee who required one. Today, however, companies can take advantage of auto lease offers, which means that their staff members frequently have the option to select their own car from a range of pre-approved vehicles.
The employee only needs to pay for fuel after the company covers the cost of the car's purchase (or rental), vehicle tax, insurance, MOTs, servicing, and maintenance. Even a yearly fuel allowance is included in some company car schemes. Electric cars are an increasingly popular and go to option by employees and employers especially with fuel prices being as high as they currently are. If you are unfortunate enough to get a puncture on your tyre(s) then you will most likely need to buy your tyres yourself unless your employer is generous enough to cover this.
It's vital to keep in mind that since a corporate car is regarded as a "benefit" the employee must pay company car tax and, if fuel is included in the contract, tax on this as well.
How can employees’ benefit?
As mentioned above, company car schemes have many benefits for employees.
A company car can frequently end up being significantly less expensive than purchasing or leasing a vehicle individually, even after paying the additional tax. Employees would not only be free from long-term car loan and interest payments, but also from the unforeseen costs of owning a car, such as high repair costs.
Employees can drive higher-quality vehicles at a lower cost, and because servicing and maintenance is taken care of, they are less likely to run into problems - like having their car break down on the way to a crucial meeting, for instance. Additionally, they don't have to stress about using public transport or missing connectivity. A business car gives employees a more dependable way to travel to work and perform their duties effectively. It’s worth noting that an employee’s worry over transportation-related difficulties can be greatly reduced if their employer provides a vehicle for them to use.
The employee only needs to pay for fuel after the company covers the cost of the car's purchase (or rental, i.e. Iceland car rental when traveling abroad), vehicle tax, insurance, MOTs, servicing, and maintenance. Even a yearly fuel allowance is included in some company car schemes.
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