Corporates increasingly reviewing company car benefits
The need to improve sustainability and the efficient use of (increasingly limited) resources is the main driver for corporates to review their company car benefits policy in 2022.
They clearly understand the need for everyone – including themselves – to actively contribute to achieving the goals of the Paris Agreement and the UN Framework Convention on Climate Change. In the recently published Mobility Maturity Map, we have dived deeper into changing corporate strategies as an essential indicator for change. We asked the world's leading expert in mobility-related benefits why and where corporates are leading the transition to smart and alternative corporate mobility.
According to Lisa Grunditz (picture left), Associate Director, Rewards Data Intelligence at WTW, about 50% of respondents to the Company Car Benefits Survey intended to review their company car benefits across major geographies in Europe. With over 61% of companies looking into changing the company car benefits, Belgium and British companies are leading the trend.
Figure 1: Share of companies intending to review the company car benefits policy in during the next 12 months (source: 2021 Company Car Benefits Survey Report, WTW)
Introducing a more environmentally friendly behaviour is a main objective for change (45%), according to Grunditz. The Dutch corporates leading the change, with over 81% looking into greening their mobility offering through the introduction of electric vehicles for example, explained Grunditz. Another growing reason for a change is related to the changing requirements of the workforce, which is creating demand for more flexible solutions that may allow employees to select benefits tailored to their own situation and lifestyle. Also, the implications of the COVID-19 pandemic, particularly in terms of how and where people work and how they commute and travel for work-related purposes, is clearly recognizable in corporate strategies, Grunditz commented: more than a fifth of the respondents that plan to change their policy are looking into introducing increased flexibility for their employees. These front runners in changing corporate mobility are actually implementing additional alternative mobility solutions, such as access to (e)bikes, car-sharing, ride-hailing, carpooling or a mobility budget.
Figure 2: Respondents planning to introduce flexibility and more environmentally friendly policies
(source: 2021 Company Car Benefits Survey Report, WTW)
Want to know more?
Although essential, a changing mobility approach is just one of the elements determining a country's maturity for alternative corporate mobility. The Mobility Maturity Map is the first-ever study of corporate mobility across 10 key European markets. It covers elements such as Demography, Corporate strategy, Uptake of public transport, Availability of mobility providers and Supporting legislation.
Want to know more? Download here your own copy of the E-book Mobility Maturity Map.