Many fleets are considering solus or dual-branded deals with manufacturers, either for lease or outright purchase, as an opportunity to negotiate better deals on bulk purchases.

A Fleet News website poll revealed in 2009 that up to a third are looking at the solus option.

The upside is potentially huge savings; the downside is driver choice – how happy will they be with only one option on the car list?

Norwich & Peterborough Building Society (N&P) believes this is a major stumbling block – it is sticking resolutely to its fleet policy of offering multi-brand options. It takes a true user chooser approach, allowing company car drivers to select any model within their allowance band.

Chrissie Tyler and Sarah Harbour, HR analysts who are also responsible for the 105 cars and some 50 greys on the N&P fleet, say this is because fleet cars play a crucial role in the recruitment process.

“It’s more important that people get the car they want,” says Tyler.

Harbour claims this has not led to a conflict of interests for a company that has a carbon neutral policy. “The car scheme is an emotive area and we have to strike a balance between keeping staff happy and the business needs,” she says. “There is a very small minority that we are battling against but driver training will help.”

Both ladies have overseen the fleet as part of their broader HR responsibilities for the past three years after N&P merged the fleet manager’s position into the HR department.
“Cars are a huge benefit as a recruitment tool so moving it into HR was an obvious move – it’s now part of the benefits package,” says Tyler.

She admits that initially it was a daunting prospect – not least because she had only just started driving herself and “knew nothing about cars”.

Joining ACFO – the Association of Car Fleet Operators – was a big help, and Tyler recommends membership to other fleet decision makers: “Talking to others with the same problems was very useful.”

N&P uses Alphabet to source and buy the cars and provide management information. The fleet is split 60% needs-based and 40% status.

It operates eight allowance bands – £250, £370, £400, £420, £450, £510, £650 and £970. The most popular by far are £400 and £420. Up to £420 is based on needs provision; above is status.

Cars are on a strict three-year change cycle. In a bizarre coincidence, most are changed within a three-month period; the last time was towards the end of 2007. At that point virtually all of Tyler’s and Harbour’s time is spent on the fleet.

Alphabet also handles the maintenance schedule. Tyler and Harbour do the rest.
“We deal with a lot of the local garages and they are willing to give us a deal because they know we have a few cars,” says Tyler. “It’s good to have contacts that we can talk to about any issues.”

In October 2007, N&P introduced a green policy to its fleet, bringing the operation in line with its broader environmental brand values as a carbon neutral company.

Dubbed ‘Green Premium’, it offers drivers a £10 increase on their monthly allowance if they choose a car that emits less than 150g/km CO2.

“We’ve seen our CO2 fall from an average of 168g/km to 151g/km over the last 18 months,” says Harbour, who initiated the programme.

The incentive was key: “Drivers are more concerned about the impact on their cash than they are the tax implications for the company,” Harbour says.

She adds: “Management would like to see a further increase in the incentive to bring CO2 down further as we are a carbon neutral company.”

But it’s not all about reducing carbon dioxide emissions. N&P is one of a small group of organisations, which includes Honda, to recognise the impact of nitrous oxide (NoX) gases emitted by diesel cars.

“The industry isn’t responding to this – there’s too much focus on CO2,” says Harbour.
Following a meeting with the Energy Savings Trust (EST), N&P is now considering ways to encourage drivers to think about smaller engined cars.

It is also looking at implementing mileage targets and CO2 targets. The proposal is for Tyler or Harbour to meet the line managers of staff who exceed their mileage threshold to discuss options like hotel stays for longer trips.

EST also offered tips on reducing the environment impact of N&P’s grey fleet. The company has tightened the rules on who qualifies for cars, which has reduced costs, and it now records details of everyone who takes the cash option, what they bought and car maintenance schedules. It backs this up with spot checks on licenses, checking for endorsements.

Those qualification rules ensure N&P’s benefits are kept in line with those offered by other companies, each competing for the best staff. The company is mindful of the role company cars play in recruitment.

It is also addressing the issue of staff who aren’t in the cash scheme using private cars for small business trips and claiming the petrol money back – it’s far from ideal for a robust health and safety policy. Tyler is looking at adding more pool cars to the fleet to combat the issue.

N&P is undergoing a company-wide brand project looking at its culture and how it sells benefits to staff, which will include running a series of awareness clinics. Tyler believes a similar approach should be taken with the company car drivers, particularly on educating them about the implications of 160g/km to the company from April 2.

“It would cut down administration and help to motivate drivers to change their priorities and consider green issues,” says Tyler. “It would also help to discourage people from taking the cash option.

All fleet policy changes have to be signed off by the management board – Tyler and Harbour have a successful track record.

“We write the paper and make the recommendation to the board,” says Tyler. “The car scheme is so emotive so there are lots of debates.

“We have to put up a good argument to win, but we go armed with more information, which is where ACFO has really helped.”

Fact file

Name Norwich & Peterborough Building Society

Fleet manager: Chrissie Tyler, Sarah Harbour (both HR analysts)
Fleet size: 105 cars; 50 greys
Change cycle: three years
Lease or purchase: lease
Management company: Alphabet