In addition to salaries and wages, companies offer various employee benefits to attract, motivate, and retain top-quality employees. Benefits usually vary from organisation to organisation. Those competing for top talents in highly competitive fields usually include lavish benefits like cars in hiring packages.
Company cars are an attractive perk for employees that keep them happy and motivated. The personal use of company-provided cars can make commuting to work a lot easier. Interestingly, the benefits of company cars extend to the employer and the entire enterprise. We’ve listed a few below.
One significant advantage of rewarding deserving employees with company-owned vehicles is that it enhances general job satisfaction. Generally, the level of enthusiasm and devotion these employees feel towards their jobs will significantly increase. Satisfied employees tend to apply themselves more to carrying out their duties and helping the company achieve its objectives.
These employees play a vital role in the overall performance and success of the company.
For these reasons, it helps to take the initiative and encourage employee engagement by providing company cars to employees that do excellent work. Doing so will keep them happy and motivated.
That being said, when purchasing employee vehicles, it always helps to buy in bulk as various dealerships offer discounted prices. For delivery, several vehicle moving companies can help to ensure the cars are safely delivered to your workplace.
Having a company car helps to enhance commute and off-site work. Employees can travel to business meetings and service areas fairly easily without going through the hassle of public transportation. With company vehicles, employees are also better equipped to conduct business and render services to clients. Remember that an acclaimed, powerful vehicle can enhance your company’s brand image when meeting with prospective clients and investors.
Good branding can help businesses thrive in economic downturns, grow operating margins and gain a competitive advantage over others operating in the same industry. By placing visible elements of your brand, like company name, color and logo on company vehicles, you can create a strong, cohesive brand image and drive brand awareness.
In addition to helping the business save money on promotions, company cars with unique identifying markers can help create brand identities within a competitive marketplace.
In addition to regular salary and other remunerations, most employers provide employees access to company cars to enhance their job performance. These workers arrive at company premises in their vehicles and use the company-provided vehicles to discharge their job duties. That said, employees who use company-owned vehicles enjoy certain tax benefits.
For example, using a company car for business use qualifies as a deductible business expense. Business expenses are not taxable to the employee. Employees that drive company cars for business purposes must keep accurate and detailed records. These records come in handy when filing tax returns.
Additionally, many employers also offer auto allowances to reimburse employees for expenses incurred in the course of driving a company vehicle for business purposes. Similarly, this auto allowance is not taxable to the employee. There’s no gainsaying that employee satisfaction and employee engagement play an integral role in the success of a business. However, the advantages of including the most impressive fringe benefits like cars in hiring packages go beyond general job satisfaction; they are limitless.
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