Carless talk (how many UK companies are reviewing their company car benefit policies to employees as a means of controlling expenses)

Article Type: Abstracts From: Human Resource Management International Digest, Volume 19, Issue 3

Wreford D.Accountancy (UK), November 2010, Vol. 146 No. 1407, Start page: 43, No. of pages: 2

Describes the way that many UK companies are reviewing their company car benefit policies to employees as a means of controlling expenses during the current economic downturn and of containing costs and managing risk. Cites Mercer’s “International car policies” report, which summarizes regional car policies and practice information to help multinational organizations assess patterns and differences between countries. Reveals that the report for 2010 indicates that Europe is the region with the highest prevalence of company cars, with 94 percent of UK organizations providing a car or cash allowance. Stresses that cars, like any other benefit, should be offered for the right reasons and lists some of the possible reasons. Argues that company cars offered as “perks” almost inevitably fall into the category of a contractual benefit and removing them altogether requires three key things to be considered: determination of fair compensation; consultation with employees and communication individually; and supporting employees’access to personal cars. Concludes with a brief discussion of the role of environmentally friendly (“green”) cars in a company’s car policy.ISSN: 0001-4664Reference: 40AA770

Keywords: Company cars, Fleet management, Cost reduction,Cars, Benefits, Employees, Organizations, United Kingdom