Covid-19 will forever change employee working practices and drive new corporate mobility strategies says Nobull client Goodwood Corporate Mobility

Covid-19 will forever change employee working practices and drive new corporate mobility strategies says Nobull client Goodwood Corporate Mobility

The global Covid-19 pandemic will forever change the way UK companies provide their employees with company cars according to Goodwood Corporate Mobility (GCM).

Instead of entering into a long-term contract for every employee company car, businesses will look to provide a more flexible approach to corporate mobility. This will involve businesses paying for what they need to keep an employee mobile and then giving cars back when they’ve finished with them, sometimes after just a few days or weeks.

“The hundreds of thousands of company cars currently parked on British streets and driveways being paid for by businesses without turning a wheel will inevitably drive a change in mindset. No two businesses have the same car operational need and that’s why they will start to explore the options available to them to create a segmented approach to corporate mobility,” explained Tony Donnelly, chief executive of Goodwood Corporate Mobility.

“It might be more efficient for the company to supply the driver with a car for a few days or a few months and then return it to the supplier when the period of business use ends, while some drivers may still need a car for a longer period. This requires a structured and disciplined policy to prevent unnecessary cost and abuse.

“With the new WLTP based company car tax and VED rates announced in the Spring Budget bringing signalling increased taxes on petrol and diesel cars, both the driver and company may want to avoid committing to a longer-term contract on a car, unless it’s a zero emission tax EV,” he added.

Donnelly says mileages will continue to fall in the future now that more businesses can see employees efficiently working from home. Technology will make this transition process the new ‘norm’.

“Businesses are beginning to learn how to enhance the productivity of their people as a result of working from home, with procedures put in place to protect us all from the Covid-19 pandemic. Many of these will continue which means drivers will travel less on company business. It will change working practices for ever which will in turn fuel new employee mobility strategies,” he added.

But GCM is aware there are still a large section of company car drivers such as service engineers or public service workers who need to be mobile all their working hours and may need to transport equipment to carry out their work. These would fall into the medium to longer term leasing contracts section of a new modern-day company car policy.

It also highlights the case for an employee who needs a car to get to their work during the week, but at weekends or holidays needs something larger. A structured and more flexible mobility strategy would take instances like this into account because control of cost and usage is critical.

“The company car industry hasn’t changed much in many years, but businesses are already telling us that they are planning for change, not just in the way they run their company cars, but also how working from home will become an integral part of their employment proposition,” said Donnelly.