Are company car offerings losing their shine?

Are company car offerings losing their shine?

A recent survey has found that although over 70% of organisations have company cars, only a minority of staff are actually offered them – a miserly 8.2%.

However, according to XpertHR, who undertook the survey, company cars remain a popular employee benefit.

For firms that are increasing the number of employees who get access to this benefit, there are several reasons.

Overwhelmingly, more staff being offered company car benefits is due to an increase in headcount. 52.5% cited this as the primary reason for the increase in their offering.

28.2% of businesses cited company or business growth whilst those who rescinded their company car offering cite the cost and tax changes as primary reasons.

Despite XPertHR’s claims that fleet offerings are still popular, not all employees have the same chance of getting hold of the keys to a company car.

Unsurprisingly, Directors are most likely to receive a company car or car allowance for ‘status’ reasons rather than job need. Senior staff are also much more likely to receive a choice in the car they get.

The likelihood of getting a company car is also dependant on job role – with companies arguing that sales positions need a car the most.

Sheila Attwood, Managing Editor, Pay and HR practice at XpertHR said: “Our annual survey shows that company cars and car allowances tend to be given as a perk to senior directors, whereas they are given to employees where a car is essential for their role, such as those in a sales position.

“Companies are keeping a close eye on any legislative and tax changes that may be introduced and will adapt their car benefit polices accordingly. We expect more companies will be moving to or encouraging employees to opt for car allowances in place of a company car in the future.”

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