The future fleet is here – here’s how to keep up

Economic growth and evolving corporate landscapes have fundamentally reshaped the need for companies to provide and manage assets for employees. Traditional benefits such as corporate housing, company cell phones and company cars, once seen as high-value perks, are increasingly viewed as resource-ineffective or completely unnecessary. As businesses aim to streamline operations and focus on strategic growth, there is a noticeable shift towards offering competitive compensation and customisable benefit packages that better cater to the diverse needs of the modern workforce.

 

For companies whose success depends on employees driving to customers and job sites, moving away from providing a company car allows businesses to align with employee preferences and focus on key growth areas. Today, individuals and families prefer the flexibility to choose vehicles that best fit their needs, which reduces the financial advantages and convenience once associated with company-provided cars. Fortunately, businesses can now free themselves from the distraction of managing, leasing, maintaining, insuring and selling fleet vehicles that are commonly available cars and trucks. Instead, flexible reimbursement programs enable companies to focus on key growth areas by delivering cost savings, risk reduction and enhancing employee satisfaction by fairly reimbursing them for the business use of their personal vehicles.

 

Spend control

 

One of the common myths about moving away from traditional fleet management to a reimbursement model is the perceived difficulty in managing the program and having the visibility and controls needed to optimise costs. Companies often believe vehicle reimbursement programs are more expensive because of the perceived added administrative burden, increased or inaccurate mileage claims leading to abuse and waste and lack of control over vehicle-related costs.

 

However, implementing a reimbursement program can save companies with large field sales and merchandising teams millions in reimbursement spend. Traditional fleet programs require substantial investments in vehicle acquisition and management, including coordinating maintenance schedules, obtaining insurance, navigating claims and ensuring regulatory compliance, all of which demand dedicated administrative resources and expertise. On the other hand, reimbursement programs provide companies with greater control over costs, increased visibility to optimise spending and the flexibility to customise programs to suit different employee needs.

 

Centralised reimbursement solutions streamline the management of multiple employees and programs into a single platform, simplifying operations and reallocating resources to other business priorities. Tools such as automated mileage capture verified through GPS technology ensure accuracy, enhancing operational efficiency by minimising the time spent on administrative tasks related to reimbursement.

 

Risk mitigation

 

Some companies believe moving away from a traditional fleet model will expose them to significant risks from underinsured, uninsured or unlicensed drivers. However, whether organisations have company-owned vehicles or reimburse employees for using their own cars, the key factor is practising due diligence and having a risk management solution that verifies drivers are licensed and appropriately insured.

 

Company-owned fleet management involves navigating increasingly complex insurance landscapes and ensuring compliance with regulatory standards and safety protocols. Employees may not treat company-owned vehicles as well as their own, leading to higher maintenance and repair costs. These challenges underscore the administrative burden and complexities associated with maintaining a fleet of company-owned vehicles.

 

Implementing risk management solutions is an effective way to ensure employees driving their personal vehicles for work are adequately insured and licensed with real-time monitoring and training systems to mitigate risk. These systems can detect changes in drivers’ licences and records, and identify insufficient insurance coverage, allowing organisations to have the same protections and controls as a fleet program.

 

High-quality employee benefit

 

While it is still a common belief for companies that employees perceive a company-provided car as a greater benefit to reimbursements, this is no longer the case. In fact, only 10 per cent of employees see a company car as a useful benefit.

 

Today, employees value the flexibility to select the vehicle that best meets both their personal and professional needs, especially since most already own a personal vehicle. Consolidating personal and company cars into one alleviates the burden and inconvenience of maintaining two separate vehicles. Companies can evolve with the modern workforce and attract and retain top talent by fairly reimbursing employees for the business use of their personal cars.

 

Motus: revolutionising reimbursement

 

As the long-standing leader in spend control and risk management for industries with field sales, services, and support teams driving their own cars and trucks to visit customers and work sites, Motus provides companies with enterprise-wide visibility and controls to optimise vehicle reimbursement spend and mitigate the risks associated with field teams driving while working.

 

Motus provides expert support for IRS compliance and cost savings, along with automated mileage capture that enhances efficiency. Its robust systems and analytics effectively reduce waste, abuse and risk. Motus also offers role and location substantiated reimbursements, which help maximise tax advantage and ensure compliance with employment laws. Additionally, flexible monitoring and training solutions are designed to mitigate the risks associated with driving for work.

 

By freeing companies from the distraction of passenger vehicle fleets, Motus empowers organisations to concentrate on what really matters most. Motus delivers cost savings, risk reduction and employee satisfaction by reimbursing employees for the business use of their cars – we call this the Future Fleet.

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