Fleet News

Company car key to staff loyalty

SUCH is the importance of the company car that many employees would resign on the spot if theirs was taken away.

And the majority of company car drivers (70%) would expect an increase in their pay to compensate them if they lost the use of a company provided vehicle.

The study of 440 drivers, carried out by Isis Mori on behalf of the UK’s biggest leasing company, Lex, found that one in five people (22%) would resign if that happened.

Younger employees and heavy car users were more likely to look for new jobs – 30% of drivers under the age of 35 and 38% of drivers who spend more than three hours a day behind the wheel on company business would look for another one that offers a car.

Fewer than one in 10 respondents said they would feel no impact from the loss of the company car, a finding that demonstrates the value employees place on company vehicles.

Three-quarters of those quizzed cited not having to organise insurance, tax or servicing as the best thing about having a company car while two-thirds said the main benefit was the lack of the financial burden of having to run their own car.

Lex managing director Jon Walden said: ‘Company cars are still an important element in attracting and retaining loyal employees. Remove the car and you’ll pay heavily as a business. In recent years, the myth has arisen that company cars are perhaps not as desirable as they once were.

‘However, this research shows how much people appreciate their cars – to the extent of quitting if the vehicle was taken away in some cases. Most firms can’t afford to have a fifth of their employees walk out, so they need to be aware of the importance potential recruits place on a vehicle as part of the salary package.’

A report issued at the end of last year by financial services giant Deloitte revealed how the company car will make a major comeback over the next few years.

Entitled Goodbye Company Car? the report found that duty-of-care concerns and Government measures to increase the attractiveness of the company car as a perk would help fuel its popularity (Fleet News, December 14, 2005).

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