When it comes to company provided vehicles, there are many approaches an organization can take. Some offer top-end, luxury vehicles to their most valued employees, while others simply give an allowance and let the employee decide how to spend it. Company vehicle programs have been a common employee benefit used to attract and retain employees for a long time. However, trends are changing among the most successful companies who provide vehicles.
Electric vehicles are becoming more and more popular as an option for a company vehicle and there are many reasons why. While some will scoff at the idea of using an electric vehicle exclusively, it can be highly beneficial for a company to offer them or even mandate them as the vehicle of choice for their employees.
Employee Attraction and Retention
The war for talent is driving companies to be creative when it comes to differntiating themsleves as an employer of choice. According to a Gallup study, 60% of Millennials are open to a new job opportunity. On average, they’ll have 4 different jobs before age 32, and as many as 20 in their lifetime. This is very costly for employers. In order to slow the turnover, some companies create an employer brand that screams innovation and forward thinking. Electric vehicles are on the leading edge of technology and may be the perk that tips the scales for the highly sought after employee prospects, especially if other parts of the job are highly similar.
A key to retention is staff feeling as though they matter and are important. What shows key staff they matter to a business? A corporate vehicle, compensation, responsibilities, among other factors. It’s also hard to leave a job where your compensation is acceptable and your employer demonstrably values you. It’s also hard to quit if you don’t have a ride home.
Company Image and Brand
Whether business owners like it or not, there is a major push across the globe to be more environmentally conscious and to enact green initiatives in every aspect of their work. Consumers worldwide are now choosing certain products because they are eco-friendly and because the companies behind them are reducing their carbon footprint.
By moving towards an all-electric fleet of company vehicles, organizations can show the public that they are serious about lowering emissions and caring for the environment around them. This garners positive press and creates a better image for the company as they grow.
Harnessing the technology behind electric vehicles also shows the company is ready to move into the future. Consumers like to see innovation in every aspect of business, and while EVs are just one small step, they help to contribute to an overall progressive image for the company.
By valuing innovation and eco-friendly programs, the company will entice a wider range of both consumers and potential employees. If the competition isn’t pushing for such initiatives, this can become a major advantage in the marketplace. Those who don’t embrace technology are doomed to fall behind in the race, no matter what industry they are in.
High Mileage Users
Outside sales reps are on the road and mileage can add up quickly. EVs can be a cost effective approach for these high mileage users from a total cost of ownership perspective. Gas powered vehicles have engines with lots of moving parts that wear out over time. EVs don’t require as many components to operate. EVs don’t have oil, fan belts, air filters, timing belts, head gaskets, cylinder heads or spark plugs. Additionally, if you’ve ever driven an EV you understand how regenerative braking can extend the life of brakes on EVs. An EV’s engine is able to slow itself down reducing the usage of braking.
Leasing EVs is a great option for these types of users. A common reaction is that leasing won’t work because of the high mileage. FALSE. Leasing is becoming the preferred way of acquiring fleet vehicles especially EVs. Because of the maintenance items noted above, EVs last longer which drives down the total cost of ownership. With benefits such as improved cash flow, tax savings, and freed up capital, more and more companies are considering open-end leasing where flexibility is the name of the game.
Tax Credit Benefits
One of the immediately recognized advantages of an electric vehicle is the tax credit benefit it offers. The federal government and a number of state governments offer tax credits and other financial incentives for owning an electric vehicle.
Organizations can say they value their employees, their customers, and the environment in which they operate. It is more important that they actual show they value them. Electric vehicles are one way to help a company remain committed to their environmental goals while offering their employees better perks and keeping their customers satisfied.
While profit is the motivating factor behind the success of any business, it is vital to produce and maintain a positive image. With a populace that is more and more concerned about the health of the world, going green and embracing innovation is more important than ever for an organization. In the future, electric vehicles may become the standard, and those who embrace the trend early will be far better suited to adapt to any potential forthcoming changes.