EXCLUSIVE: Asda has seen cost savings of around £950,000 a year since it switched from a cash allowance to a company car scheme in 2010.
Asda has used the savings to improve the choice and specification of the cars available through the scheme.
The grocery retailer had 1,500 employees eligible to take a cash allowance to purchase a company car. Between January 2010 and January 2011, 53% of orders for cars were placed by employees entering the company car scheme rather than opting to take a cash allowance. Following the change, the fleet grew from 790 cars to 1,100 in less than 12 months.
Asda also developed an online calculator to help demonstrate the cost savings to staff of taking a company car over a cash allowance, in conjunction with provider Zenith.
The company car scheme was communicated via onsite roadshows and newsletters.
Mike Hazelgrave, reward manager at Asda, said: “It was important to highlight the advantages to employees.
“Many of them had not considered additional costs, particularly from driving an older car, such as fuel costs and higher maintenance costs.
“They do not have to worry about unbudgeted costs arising, or from market or other increases in insurance. We have been able to improve the value of the benefit to our employees by increasing the allowance for each grade to provide them with higher-specification cars.
“This has been all because of the savings we have made from a reduction in cash takers. It has also been a great way for us to improve employee safety while on the road and assist with duty-of-care compliance.”