Over 3 million company cars exist and the backdrop against which employers provide them is constantly changing. Over the next few years we will see more change in terms of political, economic, social, technological, environmental and legal (collectively known as PESTEL) developments that will impact company car benefits and related areas.
Latest developments and forecast future changes mean that, unless you have recently reviewed your car policy, you should consider reviewing your current scheme, for instance:
- How is your policy aligned to employee reward objectives?
- How is it supporting risk management?
- How does it align to environmental strategy?
- Is it operating at the lowest achievable cost?
The stakes are high if you don't conduct such a review. Car benefit costs are major (up there with pensions if viewed through an employee benefits prism), and the car benefit itself is very emotive and represents a valued part of the reward package. Additionally, company cars can play a major role in helping to manage risks to employees driving on business. Finally, policy is important, but only if it is adhered to. It ensures consistency, fairness and best practice to be deployed in your organisation. In an area as tangible and visible as company cars, this is especially important.
