Employees who have access to company cars can benefit in several ways. For one, it can make their job easier, as they can use the vehicle for business purposes. Additionally, it can help improve employee morale, as employees will feel appreciated by their company. Finally, providing employees with company cars can also lead to cost savings for the company. For example, according to a study by Towers Watson, the average cost of an employee lease is $483 per month, while the average price of an employee parking pass is $50 per month. Companies can save money on these expenses by providing employees with company cars.
However, additional costs will be associated with providing company cars to employees. For example, companies need to consider all these factors when deciding whether or not to give employees access to company cars. They should weigh the benefits of providing employee access against the additional costs you incur. Here are a few tips to consider for the effort.
Employee Screening
When deciding whether or not to provide employees with company cars, one of the most important things companies need to consider is the screening process. This process will identify which employees are eligible for company cars and which are not. The screening process should be designed to ensure that only qualified employees receive company cars.
There are several reasons why the screening process is so important:
- It helps protect the company from potential liability. If an employee not authorized to use a company car gets into an accident, the company could be held liable.
- The screening process ensures that employees only use company cars for business purposes. This helps reduce costs and minimize the risk of accidents.
- The screening process allows companies to track employee usage of company cars.
You can use this information to improve safety and reduce costs.
Overall, the screening process is essential to providing employees with company cars. It helps protect the company from liability and ensures that employees use vehicles for business purposes only. Additionally, it allows companies to track employee usage and make improvements where necessary.
Gas Costs
Another essential factor to consider when providing company cars is gas costs. Companies need to make sure that they are budgeting for the fuel cost for each employee with a company car. This allows them to plan out their expenses and ensure enough funds available when employees need refueling.
Additionally, companies should consider the type of vehicles they provide to employees. Some models are more fuel-efficient than others and can help reduce overall gas costs. Companies should also consider alternative fuel sources such as electric or hybrid cars. These options may be more expensive in the short term, but they could save money in the long run due to reduced fuel costs.
Maintenance and Repairs
Finally, companies need to consider the cost of maintenance and repairs when providing company cars to employees. Companies should create a budget for these costs and ensure they are covered before providing vehicles to employees. Additionally, companies should develop a plan for handling major repairs or accidents. A plan can help reduce costs and ensure employees have access to safe vehicles.
Unfortunately, some employees might confuse their current cars with their company-assigned ones. As a result, they might have issues with their gas and diesel consumption, leading to major repairs or replacements. Companies should keep an eye on this behavior and take appropriate action when necessary. You can partner with an auto shop that provides diesel repair services when employees make mistakes.
Some employees might also have trouble with car maintenance. Companies should consider providing employees with access to a car rental service or an auto repair shop that offers discounts for employees of the company. These services can help reduce costs and ensure employees have access to safe vehicles.
Vehicle Insurance
Finally, companies should consider the cost of vehicle insurance when providing company cars to employees. Vehicle insurance can help protect companies from liability in an accident or theft. Companies should research car insurance options and choose the one that best meets their needs. Additionally, they should create a policy for employees using company vehicles to ensure compliance with state laws and company guidelines.
Creating a comprehensive car rental plan for employees can help companies save money and improve safety. When creating this plan, it is essential to consider the cost of gas, maintenance, repairs, and insurance. Additionally, companies should implement a screening process to ensure that only qualified employees receive company cars. Following these tips, companies can create a successful employee car rental program.
Final Thoughts
Additionally, it’s essential to promote responsible driving habits among employees with company vehicles. Companies should provide detailed instructions on operating their vehicle and the importance of safe driving practices. They should also remind drivers of the restrictions associated with using a company car, such as not exceeding speed limits or drinking while driving. Finally, they should enforce strict penalties for employees violating the company’s policies. By taking these steps, companies can create an efficient car rental program for their employees and help ensure their safety on the road.
