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06 Jul 2016

Getting emotional about company car benefit design

When people talk about company car fleet and discuss the rewards and challenges of working with car fleets, it is often described as an emotive subject.

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It is kind of just known that it is emotive. Those who have been involved in car fleets for so long are conditioned to accept that it is emotive. But what does this really mean? What emotions are involved and how does it impact the fleet and the way in which it is supplied?

A reflection of status

Natural human emotions can be laid very bare when discussing company car reward. The most base emotion tends to be status and recognition. A company car is a very obvious reflection of status.

Downplay the importance of this and you could enter a very dangerous place, where competitors will be quick to pick up on a weak car policy and exploit it to their advantage.

Studies by Lex Autolease show that the company car remains an important recruitment tool. Their research found that 64% of employees say the company car is important in their decision to accept a job offer, with nearly 1 in 3 saying it is very important.

Its importance for recruitment

Indeed, our own clients tell us that the company car element of a total reward package is extremely important and is being increasingly used a recruitment differentiator. In some cases disruptors in the technology sector are offering company car packages in the 95th centile and using it as tool to shake up the market place.

Generating a sense of worth amongst employees is a powerful consequence of a valued company car programme. The same study highlighted that 45% of company car drivers expressed getting a company car as a mark of achievement.

Capitalising on this emotion can be a powerful addition to an employer brand. Company cars can be such an emotive subject that failure to acknowledge its impact can easily lead to disharmony in the team.

Striving to offer best-in-class car reward can be a valuable aid to recruitment as well helping to manage retention. Why would a company looking to be an employer of choice not want the best reward package that they can deliver?

Being seen to take a proactive and progressive approach to company cars can be a powerful tool for retaining key talent and satisfying their wanderlust.

This article is part of a series based on the ebook: Reward Like a Heavyweight on a Middleweight Budget

This article was provided by Fleetworx.

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