Employee Benefits Awards 2009: Most effective company car strategy

Winner
Fujitsu Fujitsu Company Car Scheme

The judges liked Fujitsu’s holistic approach to fleet management. In 2008, the IT firm updated its company car strategy for its 6,600-plus drivers. Its aims were: to optimise whole-life cost savings through formula-controlled lease agreements giving total cost transparency; to expand the choice of makes available to staff; and to develop incentives to enhance car choice while addressing issues such as fuel consumption, low CO2 emissions and low benefit-in-kind taxation for staff.

A new car committee reviewed the existing choices offered to staff and established cost-effective, attractive alternatives. It also surveyed staff on their expectations and car wish-list, and evaluated the likely effects of new corporate and fiscal legislation on company cars. It was agreed the fleet policy would be self-financing and would encourage the 4,500 drivers taking a cash allowance to return to company cars.

Initiatives included incentives for drivers to choose cars emitting less than 160g of CO2 /km; a reduction in the threshold annual mileage for business-need drivers; a road-risk programme of online training and assessment; and a travel portal on the company’s intranet site which addresses issues relating to private, as well as business driving. The judges particularly liked this use of technology.

There were impressive results, including cost savings for both the business and staff. Within the first three months, all cars ordered delivered average CO2 emissions below the desired 160g/km threshold, average fleet CO2 fell by 32% (against a target of 25%), and more than 50 drivers switched back to company cars from taking a cash allowance.

Pictured left: Dawn Pett, reward analyst at Fujitsu. Pett said: “We worked very closely with Lloyds TSB Autolease, Sourcing, the employee communications team and external consultants. Everyone helped achieve our goal of reducing CO2 emissions by a huge amount and we now also offer a wider range of cars to our employees.”

 

 

RUNNERS UP

  • Carlsberg UK Green Fleet Review (entered by LeasePlan and BMW)
    Carlsberg UK reviewed its company car fleet with the aim of reducing its overall environmental impact and increasing employees’ perception of the benefit. This resulted in the company introducing incentives for staff to take up greener cars, such as an increased car allowance and reduced fuel rates for staff who chose a car emitting 140g CO2/km or less. It also introduced lower-emission models to its fleet. As a result, more than half of new car orders have been for lower-emission models.
  • VolkerFitzpatrick Employee Car Ownership Plan (entered by Zenith Provecta)
    In 2008, the construction and civil engineering firm relaunched its employee car ownership plan with a significant investment in lower-emission cars to support its corporate objective of reducing its carbon footprint by 30% over three years. It also introduced cash bonuses for employees who selected a lower-emission car.