Reduce exposure to grey fleet

Date: 25 September 2014   |   Author: Tristan Young

Marchment highlights the role of education in this process: "As with any change, you can expect to see some resistance from employees. The level will depend on the nature of the changes that you are making to address the grey fleet.

"Where they are completing a high grey fleet mileage it may be best to move the employee from a cash allowance and into a company car. This is a change to their benefits package, and depending on how they use the cash allowance, how much you are paying them, and how reliant they are on it, there may be some opposition. If you are simply asking employees to use a pool or rental vehicle rather than their own, it is less likely to meet resistance."

Marchment continues: "In this area communication is key. It is important to manage employee expectations from an early stage, clearly explain the reasons for change and what it means for them, and answer questions.

"Educating drivers plays a major role. Many employees do not consider the running costs of their own vehicle - they only consider the gross amount of money in their salary. Once employees have taken a post-tax view of their cash allowance and have actually calculated how much their car costs to run per annum they may be surprised by how little of their cash allowance is left to fund a car."

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