WTW: Mobility still a valuable employee offering
WTW (formarly Willis-Towers-Watson) has collaborated, alongside Deloitte, on the Mobility Maturity Map, an initiative of Fleet Europe’s Smart Mobility Institute. To understand why WTW, a company that provides services for people, risk and capital, supports the Mobility Maturity Map, Fleet Europe talks with Lisa Grunditz, Director, Rewards Data Intelligence and Tijl Schelkens (pictures below), Senior Associate who lead WTW’s Company Car Benefits Survey.
Importance of Mobility Maturity Map for fleet managers
Lisa Grunditz: “The geographical remit has always had a great influence on the tasks and responsibilities of fleet managers. When observing the traditional company car or car allowance policy landscape around the globe, we see great variances that will impact how fleet managers approach their job. As organizations begin to include or combine alternative mobility solutions in their benefits packages, this complexity increases.”
Just as with company cars and car allowances, the prevalence of alternative mobility options varies greatly from one country to another and even within areas or cities in the same country. The map enables fleet managers to view an up-to-date overview of the main factors that drive the alternative mobility prevalence in key countries.
Need for a holistic approach
WTW supports organizations worldwide in enhancing their HR programs, from articulating strategies that shape how organizations design and deliver benefits to executing goals that achieve those strategies. The organization provides access to credible, timely compensation and benefit data that help organizations stay ahead of competitors and keep pace with changing market conditions. The increased interest in alternative mobility and the fast-moving changes that WTW observes makes collaboration with other corporate mobility experts fruitful.
Lisa: “We create a clearer picture for fleet managers, thanks to our different audiences and sources of information.”
Car policy Influencers
Tijl Schelkens explains: “Business requirements, affordability, local market practices, and legislation have always influenced car policies. ESG (environmental, social, and governance) frameworks have increasingly impacted policies as well. Regulatory changes, investor requirements, customer pressure, and competition for employees drive leaders to consider alternatives. The COVID-19 pandemic also influenced these considerations with more flexible working patterns emerging.”
Nonetheless: “While employees seek greater benefit flexibility, they remain attached to company cars as a significant component of the Total Reward Package, impacting attraction and retention.”
Mobility: a local solution?
Tijl confirms: “Prevalence of alternative mobility options varies greatly by country due to local incentives. For example, access to bicycles for employees eligible for car benefits varies from country to country. At this point, alternative options are not replacing traditional car policies. The number of companies considering removing car benefit eligibility remains low overall.
Cost: an influencer for HR and for Fleet
“Inflation is another significant consideration,” continues Lisa. “HR professionals have been tasked with managing costs and optimizing talent attraction and retention. Car policies are part of this. Many organizations have reviewed their policies and increased company car budgets since 2022 to accommodate rising car prices. For example, leasing budgets for non-sales professionals in the UK increased by as much as 10% in just one year.”
Identifiers of a Mobility Customer
A company's ESG prioritization and the objective to create a flexible employee experience impact its willingness to consider alternatives to company cars. Geographic location plays a significant role in which companies are likely to transition. Local legislative and fiscal incentives, the availability of alternative mobility options and providers, and local business requirements influence an organization's likelihood to broaden mobility options.
Lisa shares some examples: “Survey participants in Belgium and the Netherlands include companies from a wide range of sectors offering alternatives to company cars, with a slightly higher representation in the pharmaceutical and health sciences sector. The nature of an organization's workforce is crucial, as understanding what employees need and appreciate in a given location is essential for predicting the uptake of new policies. Affordability and the ability to administer combined mobility options also influence the transition, so focusing efforts and resources on solutions employees will appreciate is key.”
WTW annual survey
One of the most essential documents in the C&B ecosystem, the WTW annual survey reflects data submitted by over 23,000 entities across nearly 80 countries in three key regions: Asia Pacific, Europe, Middle East and Africa, and Latin America. WTW asks organizations to provide data on their company car policies and positions annually, covering taxation highlights. By collecting and collating this data, WTW support employers in building best-in-class company car policies and practices to enhance their employee benefits offerings
PIcture Credit: WTW and Global Fleet.