Case Study: McDonald’s
McDonald’s offers a cash allowance scheme to its 1,300 employees who are entitled to a company car.
The split between employees taking a company car and the cash option is reasonably even. The fleet department calculates the cash allowance by grading employees, with each grade being entitled to a different amount.
Simon Morrison, customer support manager at McDonald’s who deals with fleet issues, says the split between cash and car was not always as even as it is today. "Now there is a fair split of around 700 employees taking the car and 600 taking the cash. Four years ago, it would have been nearly all 1,300 [staff] taking the company car, [but] we have now seen it level off as some employees have become suited towards the cash option."
The rise of the cash allowance scheme has caused a few problems, with concerns being raised over the safety of drivers who get the opportunity to choose their own vehicle.
"We have to be careful and ensure as best we can [that] our staff are driving safe vehicles. We ask all cash allowance car drivers to sign a form stating they have a suitably safe car and it is being regularly serviced," Morrison explains.
Communication between the fleet department and car drivers is important at McDonald’s. Employees are given the option to discuss all of their options with management when deciding whether to take part in any of the car schemes on offer. "We sit them down and explain the implications. For example, an employee who drives a high number of business miles should take a company car. There is no point in putting miles on their own car as it will depreciate in value," Morrison adds.