Hand holding car keys
Hand holding car keys

Beyond Company Cars: Rethinking Employee Benefits

Responding to employee needs poses a challenge in the post-pandemic work environment. According to a recent Forbes survey, 94% of HR professionals believe that employers must enhance major employee benefits and perks to keep workers productive and satisfied. However, employees want more than just health insurance and a key to a company car. 

Hybrid work is the new trend 

Workers are not ready to return to a lifestyle that requires commuting to the office 5 days a week. Consequently, giving employees more freedom with a hybrid working mode increases their productivity and well-being:

  • 89% of companies in Europe are planning on introducing hybrid working.
  • 39% of those will employ a 4-day work week.

Employees want to be independent in regards to where they work, including using safe and sustainable transportation modes when commuting. 

The automotive industry and corporates 

Company cars are dominating new car sales: 6 out of 10 new cars sold in Europe are being registered as corporate vehicles. In the current fight for a zero-emission future, it would benefit both employees and employers to switch from company cars to more sustainable options.  

Sustainability is at stake

Company car ownership has also been one of the main contributors to pollution: the 10 largest leasing companies produce 8% of car CO2 emissions in Europe. Sustainability should be a top priority for all corporates, as companies are required to be 100% electric by 2030 to decrease the use of internal combustion engines (ICE) in the EU. Currently, 96% of company cars run on diesel or petrol. Moving away from cars towards sustainable mobility alternatives simply makes sense. 

According to FleetEurope, the pandemic has proven that corporates need to start providing sustainable mobility options to their employees. 65% of trips to work are still taken via single-occupancy cars, which is highly unjustifiable for both environmental and economic reasons, and parking, pollution, and road congestion are all problems associated with company car ownership. 

Introducing mobility budgets 

Employees want a solution that is both convenient and environmentally friendly. One mobility alternative which is already transforming commuting across Europe is the mobility budget. As of January 1st, mobility budgets will be available to every Belgian employee who is willing to exchange their company car for a more sustainable travel option. These budgets also include the financing of costs for bicycle loans and e-mobility. 

How do you make employees happy? 

Trafi’s mobility budgets for corporates make it simple for employees to choose their preferred sustainable transport mode as well as book and pay for their trips in one app. The key to a successful mobility budget is to have one app with a variety of integrated solutions that can benefit employers and employees alike – and do its part in encouraging the shift to sustainable mobility in the process. 

Find out more about our mobility budget for corporates here.