Just like you get your oil changed every 5,000 miles on your car, you organization should be performing regular maintenance on its vehicle program. Is your business vehicle program due for maintenance? This year’s Workforce Mobility Benchmark Report revealed some possible gaps when it comes to risk, safety and program policy. Many organizations are leaving themselves exposed to unnecessary risks that could have big implications on their organizations’ and bottom line. Here are some of the results:
- The average direct spend per participant was $9,843. The 2015 national average fuel costs were the lowest they have been since 2009 which helped offset increases in annual fixed cost components such as depreciation and vehicle capital costs.
- When it came to vehicle program policy, 64% of organizations reported having multiple types of business vehicle programs. The most common type of program was a cents-per-mile program, but car allowances, fleet, and fixed and variable reimbursements were all represented. Having multiple types of programs is often necessary, but can cause a big strain on resources and employee satisfaction.
- It was uncovered that 46% of organizations do not verify that employees who drive for business have valid insurance. This is a huge liability risk for the organization, regardless of which type of business vehicle program they use. If an individual gets into an accident during business hours and is uninsured or under-insured, the company could be completely liable for the entire accident. In the case of a major accident, this could be a giant expense for the company.
Benchmarking your program against the results of the report is a great starting point to make sure everything is running smoothly and to set your program up for long-term success. In the full report, which you can order here, there is additional information and insights that can help you understand current mobility program practices.
If you want to quickly see how your program stacks up to the survey results, Take the quiz and see where you rank.