Navigating through the intricacies of managing company cars and vehicles can be a labyrinthine task for Human Resources (HR) professionals. From the allocation of vehicles to managing maintenance schedules, insurance, and ensuring compliance with local and federal laws, the responsibilities are myriad.

This guide aims to shed light on the pivotal aspects of managing company vehicles and provide a roadmap for HR professionals to navigate through this multifaceted task.

Exploring Electric Vehicle Schemes

Before we dive into the management and best-policy practices of company vehicles, let’s take a look at an option gaining massive traction: Electric Vehicle Salary Sacrifice Schemes

Salary sacrifice schemes establish a contractual adjustment between an employer and an employee, opening the gateway to non-cash benefits by voluntarily reducing an employee’s pre-tax gross salary.

Within the sphere of such schemes, electric vehicle (EV) schemes have surged in popularity, particularly in the context of environmental sustainability and corporate responsibility.

Electric Vehicle Schemes enable employees to access electric vehicles in a financially beneficial and environmentally sustainable manner, swapping a portion of their pre-tax salary for a non-cash benefit – in this case, the use of an electric company car.

The salient feature of this scheme is that it promotes a greener commuting alternative while potentially providing savings for both employees and employers through tax efficiencies.

Essentially, through an EV Salary Sacrifice Scheme, employees agree to forego a specified amount of their pre-tax salary in exchange for the benefit of an electric vehicle; this not only makes electric vehicles more accessible, but also synergizes with broader organizational goals related to sustainability and carbon footprint reduction.

Such schemes mutually benefit employers and employees by fostering a green commuting culture, potentially reducing operating costs, and offering tax incentives, all while contributing positively towards the organization’s sustainability objectives.

Developing a Comprehensive Vehicle Policy

Developing a comprehensive and clear company vehicle policy is paramount. HR should ensure that the policy addresses the following aspects:

Eligibility

• Clearly define who is eligible for a company vehicle – leave no room for ambiguity!

Usage Guidelines

• Detail the appropriate and permitted use of company vehicles – again, keep the boundaries crystal-clear

Maintenance and Repair

• Outline expectations regarding vehicle care, reporting damages, and organizing repairs – you guessed it, provide detail that answers all possibilities

Insurance

• Articulate the insurance coverage and processes for claiming in case of an accident – auto insurance for business can differ in rules and processes, so it’s important to understand and stipulate what is required

Allocating and Managing Vehicles

To streamline operations, the following aspects should be considered:

Allocation Method

• Establish criteria for vehicle allocation to ensure fair and consistent distribution among workers

Vehicle Type

• Align the type and model of vehicle to the requirements of different roles within the company for maximum efficiency and fairness

Record Keeping

Maintain meticulous records of vehicle allocation, usage, maintenance, and incident reports – it’s no piece of cake, but it beats the alternative of arriving at a situation that could be significantly eased with up-to-date records on hand.

Legal and Compliance Adherence

Ensuring compliance with regulatory frameworks is pivotal. Aspects to focus on include:

Local & Federal Regulations

• Stay abreast of relevant transportation laws and regulations

License Checks

• Conduct regular checks of employee driving licenses and records to ensure the correct permissions and coverages are in place

Safety & Compliance Training

• Implement regular safety training and ensure adherence to compliance norms

Environmental Considerations

Environment-friendly practices are no longer optional; they are imperative! Points to consider include:

Eco-friendly Vehicles

• Exploring options for hybrid or electric vehicles to reduce the company’s carbon footprint

Fuel Management

• Implementing strategies to manage and reduce fuel consumption – and enrolling staff in the importance of this intention

Handling Vehicle-related Expenses

Manage expenses efficiently by:

Expense Tracking

• Establishing a robust system for tracking and verifying vehicle-related expenses – the more organized you are, the less you have to do!

Fuel Card Programs

• Implementing fuel card programs to manage and analyze fuel expenditures

Mileage Reimbursement

• Establishing a clear policy for reimbursing employees for business use of personal vehicles – it works both ways

Technology Integration

Leverage technology to manage the fleet effectively by:

Fleet Management Software

• Utilizing software to keep track of vehicle maintenance, allocation, and other vital data

GPS Tracking

• Implementing GPS tracking for real-time visibility of vehicle locations and usage

Telematics

• Using telematics to monitor vehicle health and driver behavior, aiding in preventive maintenance and safe driving practices

Addressing Liability and Safety Issues

Promoting safety and mitigating liability involves:

Driver Safety Programs

• Ensuring all drivers undergo periodic safety training

Incident Management

• Developing a clear procedure for reporting and managing incidents, accidents and injuries 

Liability Insurance

Ensuring liability insurance is adequate and aligns with organizational risk management strategies

Evaluating and Revamping Vehicle Policies

Ongoing evaluation and flexibility to revamp policies as per organizational needs and changes in laws is vital. Consider the following:

Policy Review

Regularly review and update vehicle policies to ensure they remain relevant and compliant

Feedback Mechanism

Establish avenues for employees to provide feedback on the vehicle program and policy

Final Thoughts

Managing company cars and vehicles involves a comprehensive, multifaceted approach that melds policy development, legal compliance, expense management, and technology utilization. By embedding robust systems and adopting a strategic framework, HR professionals can ensure smooth and efficient management of the organization’s vehicles, all while efficiently safeguarding against potential risks and liabilities. 

HR Future Staff Writer.