Is your company’s travel reimbursement policy holding back its performance?
To drive success for your company, you need to stay on top of corporate mobility. Traditionally, when it comes to the mobility of field staff, employees and executives, companies have taken the 'car allowance' route to facilitate their work-related movements.
A car allowance is essentially a system of reimbursing the employees of the company, for the usage of a personal vehicle for work-related commute. The entire reimbursement system is resource-intensive and turns out to be a heavy administrative task, with many moving parts that make it tedious for both the company and its employees alike.
An allowance policy may also cover the cost of the employee's commute. Increasingly, employees have resorted to ride-hailing services such as Ola and Uber, but their lack of availability at times and surge pricing make them a somewhat unpredictable option. Other modes of public transport come with their set challenges as well, especially the high risk of infection in Covid times.
With changing times, newer mobility solutions such as car leasing have turned out to be a game-changer for companies. Here we bring you a comparison of having a conventional car allowance system, and car leasing as a new-age alternative. Have a read.
Better Expense Management
Car leasing brings you better control over your finances. With the lease rentals being fixed, you know the costs beforehand. This helps simplify and contain conveyance and travel expenses. On the other hand, a car allowance policy keeps you in the dark till the time you receive reimbursement receipts from employees for the usage of their personal cars for work.
Lesser Admin Hassles
While it may seem like a good option to reimburse employees for the usage of their car for work purposes, it ends up being a time-consuming process, for both, the company and employees. You spend a lot of important admin resources in monitoring and tracking personal car usage for work while looking to reimburse employees. This leads to a significant admin load - taking mileage readings, collecting and issuing receipts, keeping a track of fuel consumption, processing reimbursements etc.
With car leasing, especially with ALD as your mobility partner, the entire process of tracking and optimising your fleet comes down to just a few clicks. Via the My ALD India Web Portal, fleet managers can find everything related to the leased fleet - from mileage updates and booking service appointments, to sending notifications to drivers via alerts. An all-in-one platform for easy and efficient fleet management.
Driver Safety
A car allowance policy doesn't give you control over the types and the condition of cars your employees drive. With a company car leasing policy in place, you can provide your employees with the latest and safest car models, with comprehensive insurance coverage. A full-service car lease also ensures the entire fleet is well maintained, thereby reducing breakdowns on the job and downtime for the business.
Employee Motivation
Offering employees, a car based on performance or designation drives a sense of being rewarded and recognised. A leased car fleet can make their lives a lot simpler, by reducing the burden that lengthy reimbursement processes bring along.
And it's no secret that happier employees work better and bring more value to the business. Providing a leased company car to your employees can also help you attract and retain the best talent.
Managing the Company's Image
For employees, especially those who are customer-facing, driving up to meetings in a company car can help them be seen in a more professional light, making a good impression and increasing the chances of landing new business.
Leasing a company fleet, as opposed to letting employees drive their own cars, can help you project a better image of your company, by allowing you to command how your fleet looks. You can bring in uniformity across the fleet, with a possibility of company branding on the cars as well.
At the end of the day, it all comes down to what helps you run smoother operations, keeping in mind the safety, happiness and productivity of your employees. And of course, what it costs you.
To explore what car leasing with ALD Automotive can do for your business, contact us.