Ever since Covid-19, there has been a change in the air. Will that corporate change extends to our company cars?
The company car has been a favored incentive for high earners for generations. Ever since a flashy vehicle was found to impress other business owners, high-flying execs were renting them out whenever they flew to a new city for work. The company car might be on its way out, though, according to some.
Company cars are up there with the need to fly. Now that everything in our business world is digital, we can be face-to-face in moments, regardless of where in the world we are. Cloud technology lets us headhunt employees from the other side of the world – so why do we need to fork out thousands of dollars to send you there when Skype might just do?
See the dilemma? Here’s our scoop on what’s happening with the corporate vehicle situation. Are they in or out?
Company Cars: Yes, or No?
Company vehicles are a double-edged sword in the modern workplace. They are traditionally offered as incentives to sweeten the deal for attracting the best execs and managers. However, with COP 26 just a few weeks behind us and the world committed to a lower carbon footprint in the coming years – where does that leave the corporate car?
A recent report found that company cars were driven up to twice as many miles as our vehicles. This makes them responsible for 8% of the EU’s road traffic emissions. It’s estimated that EU citizens pay as much as €32 billion each year to fix the problems caused by pollution.
It’s not just pollution that is a downside for the company car, either. It’s wear and tear; where to keep it; what happens when it breaks down, and you don’t make the meeting on time? Shared transport is better for the environment, but it might not be better for your business. IF you don’t offer that car as an incentive, how do you attract that talent?
Then there are the problems of where the car is kept when it is off-road. If you happen to have a Carport Sydney, then you’re lucky. Lots of people keep their company cars parked at the side of the road. This means accidents could happen. Who pays for the damages? Is it you or the employee?
Alternatives to the Corporate Vehicle
As we move away from fossil fuels, we hope to see more electric company cars on the roads and Fewer Petrol or diesel-run engines. However, there are other ways we can offset company car emissions, too. For example, we could switch to ride-sharing, consider the overall cost of using an Uber instead or switch to electric bicycles.
Instead of flying, the modern business person should consider video chats and internet messaging. If you must be there in person, consider flying with the regular folks instead of using that private jet. Think about going by boat, and don’t fly back and forth.
The future of the business world doesn’t contain as many cars as it used to, and that’s a good thing. Remote work is changing the world. However, we don’t think it’s changing it for the worse.