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Are your vehicle policies keeping up with today’s world?

For your employees

Many companies provide vehicles in order for employees to fulfil their job activities, as well as part of remuneration and reward packages. Over the years, market conditions, financial and safety legislation, and new talent expectations change. This means company vehicle policies must be continually reviewed – and, if necessary – ‘tweaked’ to ensure they represent good value both to your bottom line and your employees.

With the end of another calendar year looming, perhaps it’s a good time to review your own company vehicle policies? If so, here are some of the trends we’re witnessing in Australian businesses – and across our global operations – to include in your consideration set.

Here are some of the trends we’re witnessing in Australian businesses – and across our global operations

Changing mobility choices

Younger generations are demonstrating different attitudes to their transportation options. Where a company car was seen as a significant benefit by the Baby Boomers and Gen X, it is less likely to motivate many Millennials. In many overseas cities young people don’t grow up expecting to drive or own a car; they use public transport or share vehicles by choice.

Especially if they live in our rapidly expanding and increasingly congested cities, many young workers having changing traditional Australian attitudes to the necessity of ‘having wheels’. They may prefer catching up on the news or work emails online on public transport or in a shared car to sitting alone as a driver on a daily commute.

For an appointment out of the office, they’re more likely to opt for an Uber than use a traditional taxi voucher – because of the visibility involved in finding and ordering a trip. With ride-sharing apps reducing the cost of hired car transport, using them can be of benefit to employers too.

Younger employees are also more concerned about the environment. Would space to secure a bike and places to shower be more a more attractive benefit than a car allowance? They are more open to sharing vehicle resources with their colleagues and even operating commute ‘car pools’. In the past, many employees wanted large cars with the oomph to load up, attach a trailer or caravan and take off on long family drives for their holidays, while an electric vehicle might be more valued by today’s workforce.

Changing demographics in the workplace mean that your vehicle policies in relation to salary packaging and incentives must keep up in order to remain rewarding in a changing world.

Many of our global clients have developed innovative programs using new ways to generate excitement and engagement with their staff.

Changing for good

As an employer, your organisation has a duty of care to its workers and other people they come in contact with. As a corporate citizen, you also have a duty of care to society as a whole.

Further, HR leaders should be conscious of their responsibilities to maintain a safe work environment – and any mobility used by an employee to perform work-related duties is an extension of the workplace. As an extension, your corporate vehicle polices should support preventative measures such as mandated minimum safety features, vehicle and driver behaviour monitoring, driver training, and vehicle condition monitoring.

So, just how well do your current vehicle policies reflect your role in the chain of responsibilities?

Here are just some of the questions to ask and then address:

1. Are the right vehicles available to the right staff, and are they used as intended? Is there any governance or oversight, such as telematic monitoring of vehicle use and other factors that could be hazardous such as driver fatigue?

2. Are ‘grey fleet’ provisions putting your employees and other people at risk because of the age or models of the vehicles they are driving during working hours? Could you help them by enabling a novated lease for a regularly serviced and reliable vehicle with the requisite safety features?

3. Larger companies have an obligation to measure their total CO2 emissions and demonstrate the actions taken to reduce them. Is emissions reduction reflected in your vehicle and mobility policies? For instance, are the models of vehicles owned by your company and/or your employees being factored into the equation

4. Are vehicles driven by your employees unnecessarily contributing to traffic congestion in your areas of operation – and how could your policies mitigate that impact?


If after your vehicle policy review you decide to evolve or broaden the range of a mobility benefits you offer your employees, help is at hand. Talk to us about payroll administration services which make it easier to provide a flexible range options.


Want some expert help to review your vehicle policies? Ask SG Fleet.

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