What Business Vehicle Program is Best for Potential Recruits?
Winning the top talent in any industry is far from easy, and that goes double for industries as competitive as pharmaceutical and medical device. Incentives like signing bonuses and exceptional benefits from large companies make recruiting rising stars difficult for smaller companies and startups. One benefit companies can provide? A good business vehicle program.
Many companies in the pharmaceutical and medical device industries opt for company car programs. In their recruiting efforts, they use company provided vehicles as a perk. But company car programs have proved less effective recruiting and retention techniques for the following reasons:
High Initial Cost
Depending on company size, company car programs can be difficult to support. With high initial costs, even leasing fleet vehicles for a small team is far from the most cost effective approach, especially as a small company or a start-up where cash can be at a premium. Add to that the administrative burden of expense reports and there’s another employee’s worth of work to be done.
When an employee traveling in a company car is found at fault in an accident, the company will likely be sued. During or outside of business hours, it does not matter; plaintiffs sue for the highest pay out which means going after the deepest pockets – the companies.
More and more people entering the workforce want to customize the vehicle they drive. It could just be the exterior color, it could be the complete package with heated seats. Whether they’re partial to foreign cars or a particular brand, company car programs can’t provide the specifics they’re looking for.
So what vehicle program, apart from company car, can an offering company share as a benefit to potential recruits? The Fixed and Variable Rate (FAVR) reimbursement stands head and shoulders above the others as option for a company:
Fair, Accurate and Defensible
No matter the size or location of your team, a FAVR program will provide the best reimbursement. Unlike other business vehicle programs, FAVR reimburses mobile workers for both fixed costs (insurance, taxes, depreciation, registration) and variable costs (fuel, maintenance, tires). Additionally, employees are guaranteed to get a much more accurate reimbursement because it is based on the exact costs of driving where they live and drive.
With business vehicle programs like flat allowance, payments to mobile workers are taxable. Even with company car programs, fuel usage is taxed. Not so with the FAVR program. As long as the program is compliant, employees will receive their full refund, tax free.
Companies also have customization options for the FAVR program like age of vehicles that qualify for the program and more. Employees drive the car that they actually want to drive, free to customize it as they see fit, as long as it meets company requirements
The reasons above are only a few advantages FAVR holds over the company car as a recruiting tool. While company car programs still have their place in the mobile workforce world, it is no longer the end all be all benefit for prospective employees. Fixed and variable reimbursement programs allow mobile workers to drive in the comfort of their personal vehicles without additional risk and expense to the company. If you’d like to know more, check out our whitepaper Leveling the Playing Field: Recruit Top Talent with a Better Business Vehicle Program.