Company cars have their benefits when running a business. Whether you’re a new business looking to introduce company vehicles for some staff members or you want to offer it to all staff members as part of a company’s perks and benefits, it’s important to know how to do it well.
Not all members of the company will need a company car but you might find that a few staff members would benefit from having a company car. It often makes life a lot easier for those who travel a lot, and it benefits the company directly in terms of expenses.
With that being said, if you’re looking to introduce company cars for the business, here are some tips to make it work for your company.
Create a policy
A policy is a great start when it comes to introducing company cars. The policy should outline everything, including:
- Eligibility criteria
- Rules on how the car can be used, mileage limits, etc.
- Insurance coverage
- Maintenance and repair expectations
As well as all of the above, you should also consider what the processes look like when it comes to reporting accidents, repairs, and a timeline for returning the car.
This policy should be adhered to and agreed to by everyone who has a company car. It’s an important agreement that binds both you and your employees on the terms of usage of the car or vehicle itself.
Remember to get a signature and some form of contract drawn up to help legally bind the agreement.
It’s also good to ensure every employee knows what the procedure is to follow when they find themselves in an accident where the vehicle is involved.
Clarify the responsibilities of the company
While you might be offering the car, it’s good to clarify the responsibilities that the company has when it comes to the company car being offered to the employee.
For example, you might want to explain that the company has a responsibility for providing a safe vehicle, as well as handling the insurance.
You may want to hand over the responsibility of scheduling maintenance and repair work to the employee or take on the entirety of the workload internally.
This all really depends on what resources you have internally and whether it’s going to be possible to handle all of the work that comes with company cars. Consider what works best for your company and look to clarify all of this before entering into an agreement with any employee.
Having clarity is important because it helps ensure both employees and employers are on the same page when dealing with company cars.
Explore the benefits of fleet management
Fleet management is helpful when it comes to managing multiple company cars. This is probably most helpful when you have too many cars to deal with and not enough resources internally.
A fleet management service is useful as it helps with the various admin tasks that come with offering company cars to your staff. Here are a few ways that fleet management can help as a service:
- Monitoring fleet activities
- Decision-making on asset management
- Dispatch and routing
- Vehicle acquisition and disposal
Outsourcing this service as a business is a benefit for many organizations both big and small. It takes away the responsibility that the business would have more of if they took it on in it’s entirety. When it doesn’t bring much benefit to the company from a financial standpoint, it isn’t always worth the resources that might already be limited within the organization.
Fleet management services might not be for everyone but it can certainly be helpful to put in place when you need the help.
Consider what vehicles to offer
There are plenty of vehicles out there to choose from. It’s important to be realistic about what you offer as a company car. For example, dishing out Lexus or Mercedes might not be the best financial decision you make if you’re limited on cash flow. Instead, you might want to opt for a budget-friendly option.
You may find that smaller vehicles are preferred by staff members, or that you need to offer motorcycles for the type of job your employees do.
Every business that offers a company car is going to vary when it comes to the type of vehicles you offer. You might also want to have a selection of vehicles for the employee to choose from if they have different requirements as part of their job.
Be selective with the employees you choose
When it comes to your employees, it’s a good idea to be selective with who you pick. The reason is that you don’t always have the best drivers within your workforce. You don’t truly know how good of a driver they are until you test them out in a company car.
Ideally, you want to make sure they’re going to be responsible enough to drive the car safely and in a way that’s going to positively represent the company in the best light.
The employees you pick should also be selected based on how much they need the car itself. For some, it’s a wasted expense but for others, it’s going to be something that will help their efforts in the workplace and for their job.
Speak to your employees individually to see who would be interested in a company car if it’s yet to be offered. You will likely find that there are some people who’ll be interested and others who might not want to bother. It’s always good to get the lay of the land so that you’re able to allocate the company cars to the right employees.
Provide private number plates for company personalization
Private number plates are handy when you’re looking to add that extra bit of personalization to your company cars.
As far as company cars and vehicles go, it’s an opportunity to promote your business. While not all vehicles will be appropriate for wrapping in the company’s brand assets, you might want to look at private number plates for sale as an option for personalizing the company cars you deliver to your staff.
It’s a little added extra to the car and can be a great way to show off that the car being driven belongs to the business. Therefore, wherever the vehicle is being driven, it might be offering your business free promotion or intrigue to others on the road.
Not only that but having private number plates helps to keep track of the performance of the employee and their driving.
Get professional advice before going ahead
Finally, when it comes to getting a company car or multiple cars for the company, consider the pros and cons. The best way to do this is by getting professional advice from those who know what they’re talking about.
There are plenty of services and individuals out there, that can be helpful to give you insight into whether or not company cars are right for your business. Of course, the decision is ultimately down to yourself or those responsible for making financial decisions.
Speak to existing business owners or those who you might know professionally that have a company car scheme, to see if it’s worth having.
Introducing company cars for your business is important and therefore it’s worth exploring the option if your business can offer it. Consider the advantages of company cars and whether it’s the right for your business. If you decide to pursue it, this will be a great benefit for your employees, as well as for the business in general.
