Need of the hour: Transform your mobility policy to woo and retain millennials.
If there's one thing today's generation has taught us, it's that a salary isn't everything. The youth factors job satisfaction and a work-life balance as paramount, which makes the job of corporates, trickier. Because the corporate policies that once made employees stick around for years, just aren't enough anymore. For instance, twenty years ago, giving your employees gratuity for their years of service, fostered loyalty among them. But that's not enough to retain a millennial at the same organization for five or ten years.
Indian millennials were born and raised in the middle of the Indian economic boom. This means their parents have been professionally and financially better off than earlier generations. Hence, millennials don't necessarily look for a job just to earn money, but also for things like satisfaction, work-life balance, rewards and recognition.
New generation, newer mindset
Millennials are focused on climbing their career ladder, but they don't limit their life solely to their employment. They accept change easily and prefer to hold on to their flexible, fluid lifestyle instead of being confined to a long-term commitment. They prefer to rent a house rather than buy one today. They subscribe to OTT platforms instead of buying movies. Even when it comes to cars, they'd prefer to lease one rather than buy one outright. Because all these options involve lesser financial commitment, more cash in hand, and more flexibility.
Due to this shift in approach towards life and employment, as an employer, it's important to review your corporate policies and align them to the expectations of your millennial workforce. This doesn't mean you need to discard your existing policies. Instead, just make some changes to keep up with a changing generation.
“Attracting millennials and Gen Zs is a challenge for traditional companies. Keeping them onboard can prove to be an even bigger challenge if we are not adequately prepared to make certain changes in our policies, processes and practices,” said Gajendra Chandel, Chief Human Resource Officer, Tata Motors, emphasizing on the importance of tapping into the millennial and Gen Z talent pool1.
Updating the company car lease policy
Let's talk about a policy like company car lease, an incentive that is usually reserved for top tier employees. However, today, cars are a necessity for every employee, be it an entry-level associate or the manager. Personal mobility places an important factor in one's financial decisions, employment decisions, even their habitation decisions. And in order to encourage hassle-free transport and personal security, you can now adopt a car leasing policy for all employees. This allows you to provide mobility facilities to all your employees for a predetermined price, and for a fixed tenure and mileage. It is a cost-effective solution for you and can make your employees feel cared for.
Subscription habits die hard
Car leasing is based on a pay-as-per-usage system. This generation has lived most of their lives on subscription-based models. With fixed monthly rentals, no down payments and no surprise expenses, this system comes as a boon to your finance department. According to a global study conducted by Deloitte, today, as much as 51% of the Gen Y population questions the need to own a car, when there are easier options that provide similar benefits, that too, hassle-free.
Appeasing this new mindset
Car leasing enables this generation to not be tied down to one model for years. They get the freedom to change their car with change in their income, city or family size. Car leasing companies also offer the choice to either buy or upgrade the vehicle at the end of their contract.
With the automotive industry evolving at the fastest speed ever, the duration between updates in technology has reduced exponentially. For a generation that is tech-savvy and gadget-friendly, being stuck with one model for years and missing out on the cutting-edge tech that launches soon after, isn't an option. Leasing gives them the chance to get their hands on the latest models more frequently. Along with the freedom, benefits like maintenance and routine checkups help them save time and money considerably and allows them to indulge in their personal interests.
What to do? Don't worry, we're here for you
We at ALD Automotive can help you in your corporate car leasing journey - right from devising a plan to chalking out the contracts to the maintenance and upgrades. ALD Automotive helps you tailor-make a leasing policy according to the needs, budgets, time-periods and car types suitable for your employees. With tie-ups with a range of companies like Mahindra & Mahindra, Hyundai, Honda, Maruti, Tata and many more, there are various models and variants that you can choose from the best to suit the mobility goals of your employees.
The gears in the employee mindsets are changing. And in order to keep up, employers must alter and adopt policies that reflect these new trends, and in turn, motivate their employees. ALD Automotive can be the right facilitator of transition from generation X to generation Y employers and can help you in the journey to up your corporate policy game. Because in the end, all that matters, is how happy your employees are, and how well they speak about you.