Work culture is a trending topic in successful business circles these days. In recent years, companies have been trying to build environments for their employees where they feel seen and appreciated. It has been shown that a positive and inclusive work culture combined with supportive benefits and amenities can help employees to develop a sense of loyalty and belonging. In turn, the company profits from a more passionate and motivated workforce. The company car is a popular option for businesses who want to offer perks to their staff while maintaining capital in the form of assets. Although it may seem like a significant outlay, company cars do more than just help employees travel between home and work.

Getting Your Brand on the Road

One of the most common reasons that businesses choose to offer company cars to their employees is to provide specialized fleet vehicles that staff would not normally purchase for their personal use. These could be anything from the humble delivery van to a high-performance scratch-proof vehicle made for carrying rugged gear. Maintaining a fleet of company vehicles allows businesses to maintain full oversight as well as manage the insurance and upkeep of vehicles. This means that companies can mandate certain safety features or tracking telematics that would be difficult to convince employees to install in their family cars. This equipment can help with numerous logistic concerns such as transparency of delivery timelines and locating staff in the unlikely event of an emergency.

For some companies, the vehicle that an employee drives plays an integral role in the perception of the brand. An executive in an expensive Zegna tie would not drive a rundown rust bucket to close a million-dollar deal, and a non-profit employee would not roll up to a fundraiser behind the wheel of a luxury sports car. As the saying goes, the suit maketh the man. Hence, if you want to control your brand image, then you have to be in charge of ‘dressing’ your employees, including curating the most suitable large accessories like their vehicles. Company vehicles are also a great way to showcase corporate branding. By incorporating the logo onto the car itself, employees can provide free and mobile advertising for your company as they go about their business around town.

Navigating Roadblocks

Of course, there are certain concerns when it comes to establishing a company fleet. First of all, purchasing company cars requires a substantial upfront expense. For small businesses with a limited budget, leasing cars or paying for vehicles in installments could be a more affordable option rather than purchasing vehicles outright. However, remember that business use of company cars is tax-deductible. This means that companies can have tax savings from depreciation expenses, interest on car loans, and general auto expenses such as gasoline or maintenance costs. Insurance for company cars is generally cheaper than that of personal vehicles as well because businesses are eligible for special rates for leased cars or discounts for multiple vehicles.

Another concern is that businesses with fleet vehicles have increased risk and liability even during non-working hours such as weekends, where many crashes occur. Companies can navigate this issue by setting up rules and responsibilities for their employees and educating them about safe driving practices. Some business vehicle insurance policies only cover use during business hours, while others have supplementary packages to cover both company and personal use. Nonetheless, no matter how careful your employees are on the road, accidents are sometimes unavoidable. Accident settlements are calculated based on medical expenses, property damage, and any pain and suffering. In this case, an experienced legal advisor or car accident attorney can guide you on how to determine your car accident claim value to ensure that you get the best settlement possible.

Finally, companies have to take into consideration the personal needs of their employees when deciding on vehicle models. Employees with families may hope for bigger vehicles with safety features for children. Some staff who have medical conditions may have specific accessibility requirements such as cars that are easy to enter and exit or ones with adjustable driving seat positions. It can take a longer time to find a vehicle that is suited to both business and employee needs, but doing so is essential to ensure that employees will not find themselves stuck in an inflexible situation where the boon becomes a burden.

For the employees, being given access to a company car can be a very attractive perk because it negates a significant transport expense on their part. In addition, employees will not have to rely on public transport or unreliable Ubers and can travel to and from important client meetings with convenience and efficiency. This visible and coveted reward can not only make your employees feel proud and respected but can also improve productivity and profit. By choosing a car that reflects your brand values and supporting the fleet with quality legal and financial advice, businesses can benefit greatly from the use of company cars.