Organizations continue to offer vehicle-related benefits

Record-high fuel prices have little effect on vehicle programs: Survey

Despite rising fuel prices, a majority of organizations (89 per cent) in the United States continue to offer some type of vehicle benefit to employees. The top three vehicle benefits offered are: fuel or mileage reimbursement (72 per cent), car allowance (65 per cent) and a company-owned automobile (53 per cent), found a survey of 500 members by WorldatWork.

The impact of fuel costs on an organization’s vehicle-related benefits program is considerably less in 2011 compared to 2008, when the survey was first conducted. Record-high fuel prices have had little or no effect on vehicle benefit programs in 2011, with only 13 per cent of companies considering or implementing changes to make the programs less generous, compared to 2008 when 78 per cent of companies either considered or implemented such changes.

Other key findings:

• Almost nine out of 10 (89 per cent) of respondent organizations offer a car allowance, company car or other vehicle benefit to at least some employees.
• As in 2008, the eligibility for a car allowance or use of a company car is concentrated among executives and sales employees, but 29 per cent of companies also provide a vehicle to any employee with a bona fide business need. In addition, three quarters of organizations (76 per cent) offer mileage or fuel reimbursement to any employee with a bona fide business reason.

• Of those that eliminated vehicle benefit programs in the past three years, the major reason was cost in both 2008 and 2011, with a few companies citing negative perception when offered only to executives.

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