Two-thirds of employers recognise importance of company cars

Two-thirds of employer respondents say the company car is an important employee benefit, according to research by Lex Autolease..

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Its Report on company motoring, which is compiled from independent surveys of more than 1,400 businesses, company car drivers and employees who use their own car for work purposes, also found that more than 60% of company car drivers would only move jobs for a car of similar value.

Just under two-thirds (62%) of company car drivers said the offer of a similar choice and value of vehicle is an important factor in any future decisions they make regarding job moves.

Nine million British employees regularly use their own car for work purposes. However, the research also found that 20% of employer respondnets did not carry out adequate checks to see if their employees had the correct insurance in place to use a private car for work purposes, 12% only undertake sporadic checks and 8% do not carry out any insurance checks at all.  

Just under three-quarters (70%) of private cars used by employees for work purposes are more than three years old. Just 40% of employer respondents always checkethe roadworthiness of these cars.  

One in four respondents use some kind of telematics or other motoring equipment to observe their drivers’ behaviour.

The research also found that reliability, fuel efficiency and safety are top considerations when selecting a company car. The brand of car was ranked as the least important consideration.   

A fifth (20%) of employer respondents plan to upgrade their car policies in the next two years to help secure, retain and motivate the best employees.   

The environmental impact of fleets is also a key issue for employers. More than three-quarters (79%) said this is an important consideration and 70% said that it has become more prominent in the last two years.

Tim Porter, managing director of Lex Autolease, said: “Our research proves the attractiveness of a company car to potential employees and suggests that businesses may need to review their benefits package to ensure they can secure prized talent in an increasingly competitive employment market.

“It appears many businesses remain oblivious to the cost challenges, environmental impact and safety risks associated with employees using their own vehicles for work purposes.  Our research reveals there are far more grey fleet drivers on the UK roads than those with company cars. This represents a significant risk management challenge that businesses of all sizes need to address.

“An increasing number of businesses have realised that implementing a green fleet policy can produce cost savings and environmental benefits.  Manufacturer innovations, particularly the development of cleaner and more fuel-efficient petrol models, ensure that firms have a good choice of environmentally friendly cars to support their day-to-day requirements.”