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Four Wheels can drive motivation, loyalty and overall employee satisfaction

14 Oct 2020
Over the last decade or two, many companies have created holistic salary packages for their employees, covering not just their in-hand salary, but also benefits like House Rent Allowance, Medical Insurance, Employees Provident Fund, Education Allowance, Fuel Allowance and more. As you would know, the idea behind creating these packages is to help employees cover the expenses that they would incur anyway, only this way, they can deduct it from their 'before tax salary', thereby reducing their tax liability. Now while most of these benefits come in handy to employees, there is a growing trend observed of an all-new inclusion to these benefits - A company car on lease.

Different companies have different reasons for adopting a company car policy for their organization. For some, a company car is used as a tool for trade - needed by on field employees who travel frequently or long distances for work. Others may see the company car as a retention benefit that can be provided to a larger group of employees. Either way, a company car is one of the fastest-growing and most widely accepted employee benefit across the spectrum. Especially in today's scenario, where public transport is a matter of concern from safety point of view, a company car might be just the right thing to add to your employee benefits policy.

To understand why giving your employees, a company leased car is a good idea, we've drawn out a few benefits.

  • Put your money where it matters Hefty down payments, tedious interest rates and unpredictable maintenance costs - all these come hand-in-hand with a company's decision to buy a company car. However, car leasing helps your company to effectively do away with these pocket-burners and put the saved capital to better use.
  • Looking for a tax break? When you lease a fleet of cars, you can show it as a running cost, and avail tax breaks, at the same time making your bottom line look better.
  • Leasing is cost-effective. A company car policy can reduce your admin and overhead costs, which can be hefty, if you choose to buy cars and maintain them yourself. In addition, leasing is a better option than reimbursing your employees for their commute – simply because it’s a time-consuming process for both employees and managers. A company car policy also helps you manage expenses better – because a company fleet dictates beforehand, how much an employee’s commute is going to cost you. This helps simplify and contain travel expenses. Plus, the charges for maintenance, servicing, insurance and a relief car are very reasonable in a car leasing arrangement – owing to the longstanding relationship the car leasing companies have with the workshops and insurance companies, from whom they purchase in bulk. Also, specialized service engineers at their end keep track of every job on every car – minimizing the risk of unwanted repair work and hence, inflated bills.
  • Better accountability. By signing the tri-partite contract between you, your employee and the leasing company, it’s easier to manage accountabilities. This way, you can avoid paying for any liability arising out of traffic violations by your employees.
  • It helps you create and retain your brand image. When employees use their own vehicles, you have no control over the image of your fleet. But leasing helps create a good image for the company and even enables you to brand the cars the way you like.
  • Happy employees work better. A company car can go a long way in ensuring employee satisfaction - something that's getting harder to do every day. A company car helps employees feel rewarded, and kicks up their image and status a few notches, making it a much sought after proposition for any employee. They'll feel valued, seeing that the company is investing in them, and tend to be more loyal to the organization.
  • Manage your fleet seamlessly. Most corporate car leasing companies, including ALD Automotive, offer comprehensive fleet management services. All the way from evaluating your needs to procuring the vehicles and even maintaining your fleet, it’s all a matter of a few clicks for you. With the help of the ‘My ALD’ app, you can see and manage your entire fleet of vehicles. So, you get to keep the fleet, not the fleet management hassles.

In conclusion, a well-rounded company car policy can manifest into better performance outputs and can be offered as the ideal benefit to retain talent within the company. It significantly reduces the hassles that a car comes with - like maintenance, insurance and regular servicing - all of which are taken care of by the car leasing company. This makes company car leasing a cost-effective, aspirational benefit that doesn't just make your employees look good, but your bottom line too. If you would like to find out more or know how you can get company cars for employees, contact the ALD key account manager assigned to your organization or in case you are not partnered with us, leave your details at https://www.aldautoleasing.in/ugo/b2b/ and we will get in touch with you soon!

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