Many companies employ individuals whose job consists of a strong element of travel, for instance, sales representatives, and these individuals routinely are required to drive to client locations both in and out of state to conduct business. There are really only two ways that this kind of travel can be managed by the company, one of which is to reimburse the employee for all mileage accumulated during business travel, and the other of which is to supply a corporate fleet vehicle.
Some employees are reluctant to use their own vehicle for this kind of travel, because it can put a lot of excessive wear and tear on the car, and can also cause it to age prematurely. For this reason, it is often much more advantageous for both employee and employer if corporate fleet vehicles are provided for employees for the normal conduct of their jobs. Here are some other reasons why using corporate fleet vehicles makes a great deal of sense for a company, and why it has become the most popular choice for those companies who employ many traveling individuals in a largely mobile workforce.
Better Management and Oversight
One of the great things about providing corporate fleet vehicles to your employees is that you have full control over those vehicles. When you own and manage all the fleet cars, you’re also in control of insurance coverage and maintenance of all cars, so you’re sure they’re being adequately provided for and well maintained.
You can also manage all the safety features which are included in company vehicles so that you can best protect your employees during the conduct of their jobs. One other feature that many companies really appreciate is the fact that they can install Telematics systems which allow them to have round-the-clock insights into where those vehicles are being driven, and where they are located at any given time. This is something that you could probably never persuade an employee to do on their personally-owned vehicle, but it’s a very valuable feature for an employer because it gives you much better information about a vehicle’s movements and whereabouts.
Unique Vehicle Needs
There are sometimes very special needs that are required on a corporate fleet vehicle for the conduct of business. These might be delivery vehicles, service trucks, company vans, and other kinds of vehicles that are equipped with special mechanisms, tools, and machinery for carrying out business. The more specific the machinery which is required for vehicle, the more important it is that corporate fleet vehicles be used to carry out that function. Many huge corporations rely on specialized fleet vehicles to carry all the equipment needed by service representatives when making house calls on clients.
Recruiting and Retention
In many cases, offering corporate fleet vehicles to employees to perform their jobs can be an incentive for employment, either initially or for retention purposes. Many employees appreciate being given a corporate vehicle rather than having to use their own, and this can be a powerful reason for staying with the company as opposed to seeking employment elsewhere.
Some companies even use this as a recruiting tool to entice candidates to come work for them, so they can enjoy the use of a company vehicle. In industries where providing a corporate fleet vehicle is almost a standard, it becomes necessary to make sure that each corporate fleet vehicle offered is in outstanding shape, and well-equipped to manage the rigors imposed by the specific position. When such corporate fleet vehicles are a cut above the norm, they can be a very powerful incentive to attract top-notch candidates to come to join your company.
Corporate Identity and Branding
It should not be overlooked that there is a strong element of branding and corporate identity included providing corporate fleet vehicles to employees. The specific kind of vehicles you provide your employees with, in terms of their makes and models, can say a lot about your corporate identity and the values that you stand for.
Your mobile workforce will then use these vehicles to attending meetings with clients, and they will become living representatives of your branding and corporate identity. For instance, if your branding image is of a steady but not flashy corporation, you would probably want to provide employees with solid but unspectacular vehicles.
If you choose to include your company name and logo on each of your fleet vehicles, this can increase brand awareness significantly, because it will be seen by many of the people residing in any area driven through by your employees. The more your mobile workforce drives around while displaying the company name and logo, the more visibility you will have in a given community, and the better remembered your corporation will be.
Providing Corporate Fleet Vehicles to your Employees
It should be clear from reading some of the reasons above, why it might be highly desirable for any corporation to provide its employees with corporate fleet vehicles. When you’re considering such a program for your company, you should first consider whether or not you’re providing corporate fleet vehicles as an employee benefit, or whether these vehicles will actually be crucial in satisfying employee transportation needs.
You’ll also have to figure out whether you wish to allow employees to use corporate fleet vehicles for personal usage, or whether you prefer that all usage is limited to company business. You could implement a program of personal chargebacks, in which employees are charged for personal usage of the vehicles, and that would help you recover some of the cost of operating the vehicle.
Some companies which have implemented programs like this have chosen to apply standard chargeback to all employee vehicle usage of a personal nature, regardless of the actual mileage incurred. In any case, one of the points of your corporate fleet vehicle program should be to provide cost-effective transportation for employees who need it, without having the company bear the full brunt of personal usage when it’s allowed.