Providing benefits to your employees can lead to a more harmonious, productive workplace with a higher staff morale, increased loyalty levels, and better work satisfaction overall. Providing a company car to employees is a popular benefit in several industries and it’s easy to see why.
Being able to use a company car is a valuable benefit for employees, particularly those who do not otherwise have access to a vehicle. Being able to use their company vehicle provides employees with greater transport flexibility and helps them avoid the need to rely on public transportation. We’ve listed some of the biggest benefits of providing company cars.
1. Improve Employee Satisfaction
Higher levels of employee satisfaction in the workplace can lead to a myriad of further benefits for your business. Employees who are better satisfied with their employer and role often tend to be more productive at work, happier to go the extra mile, and extremely loyal. They’re more likely to work better as a team and go above and beyond the call of duty to ensure that your company gets the results it needs. A company car doesn’t have to be the newest Audi or BMW, and it can still be life-changing for an employee who would have had to get the bus otherwise. So, it’s no surprise why employees who are given this great benefit tend to be happier with their work.
2. Boost Productivity
There are many ways in which providing company cars to employees can boost productivity. Even if your company isn’t in a position to cover the entire cost of the car, subsidised car leasing offers for employees with a company such as Vantage Leasing can work just as well. They have offers from as little as £105.90 + VAT per month, so you don’t have to spend a huge amount to provide your employees with this. Think about it – employees who do not have their own vehicles may have to rely on public transport to get to work. Buses, trams, and trains can be late and unreliable, which in turn can make them late for work and affect their performance. Providing them with a company car or allowing them to lease a car from you will not only help to improve punctuality; it also makes it easier for you to send your employees for jobs off-site.
3. Disadvantages To Consider
As with all beneficial schemes, providing company cars to employees does not come without its own set of disadvantages. For example, it can prove costly to employees; bear in mind that running a company car will also come with non-work-related taxes and expenses, such as car insurance, road tax, and maintenance costs. Bear in mind that the cost of providing company cars can quickly add up, too. If your company is located close by to public transport terminals or the majority of your employees already have their own vehicles, this could be an unnecessary expense for your business, which does not provide as much value as expected. Instead of buying company cars, you might want to consider offering a scheme where employees can lease a car at discounted rates instead.