Adapt business vehicle programs to meet changing employee needs, finds US research

By / 8 years ago / News / No Comments

That’s the finding of research by fleet management solutions provider Runzheimer in the US.

The research finds that almost all (90%) organizations have a business vehicle program in place, and 92% reimburse employees for company use of personal vehicles. As part of these programs, more than three-quarters (78%) of employers offer some employees company vehicles.

It also found that 79% of HR managers feel the number of open positions in their company that require employees to use a car for work purposes has increased in the last year.

However, the existence of vehicle incentives doesn’t necessarily resonate with recruits. A total of 71% of HR managers feel Millennials are less likely to ask for driving reimbursement or company vehicles as part of their compensation package than older generations. Similarly, 93% of HR managers feel providing vehicles is a key selling point in the recruitment process but only 68% say Millennials frequently bring up the issue of employer-provided vehicles, signaling a disconnect between job seekers’ priorities and HR’s expectations.

The research also suggested that a shift toward workday flexibility and greater technology access. Nearly three-quarters (72.5%) of job seekers report that they would prefer regular remote workdays

in place of a company car. Surprisingly, this preference remains relatively consistent across generations: 70% of Millennials, 70% of Baby Boomers, and 75% of Gen X respondents would rather have flexible workdays than company vehicles.

At the same time, 53% of job seekers would rather receive a personal technology stipend in place of an employer- provided vehicle. This sentiment is age-agnostic as well: Millennials are the most likely (56%) to prefer stipends over free wheels, followed closely by Gen X (54%) and half of Baby Boomers.

With regards to driving technology, more than half (59%) of job seekers are comfortable with the idea of employers monitoring their driving activity on the job, perhaps due to the fact that many organizations already rely on GPS and mileage tracking tools. The majority of Millennials (62%) are comfortable with this type of ‘surveillance’ and surprisingly, Gen X (57.5%) and Baby Boomers (59%) aren’t that far off.

Millennials are most likely to trust that connected vehicles will make driving safer (18%), compared to 13% of Gen X employees and 11% of Baby Boomers. Millennials are also three times more likely to think connected vehicles will make driving more enjoyable than Baby Boomers (13% vs. 4%). Interestingly, almost twice as many men believe connected vehicles will improve safety than women (18% vs. 10%).

In response, Runzheimer said: “While many employers have adapted their business vehicle programs to the consumer push for more environmentally responsible cars, there is room to improve. Given job seekers’ growing demands for workday flexibility and autonomy, some employers may consider swapping corporate fleets for personal vehicle reimbursement initiatives. Major strides in vehicle technology are another area employers have to keep an eye on – even if drivers are currently skeptical of connected cars’ safety and privacy.”

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.

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