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GWR Kia’s handy guide for all you need to know regarding your fleet.
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Confused by P11Ds and BIKs? Is CO2 more important than mpg? And who’s buying what in the SME fleet market? Follow Kia’s handy guide for all you need to know
> DRIVING TODAY’SFLEET MARKET
86 per cent of these companies expect either slight or significant business growth
With the economy picking up,
company car sales have been
growing for just over a year now
as businesses start to increase their
recruitment as well as revert to a
more typical replacement cycle.
This makes it the perfect time to
take a look at investing in and
running a successful business fleet.
Sector research
New research from Kia shows this
economic expansion is likely to
continue, with the majority of the
businesses it recently surveyed
expecting to see slight or significant
company car growth in the near
future. To ensure this continues, the
additional budget for these vehicles
needs to be wisely spent and the
fleet efficiently managed.
To help run a more effective fleet
and keep your drivers on track,
Kia has produced this handy guide.
Who’s who?
SME fleets typically divide into two
groups; those running job-need cars
and those where its drivers have
a level of choice about the type of
vehicle and model that they opt
to drive.
Those businesses where the car
is a necessity of the job have an
average of 106 employees, a
turnover of between £2-10m
and are often manufacturers or
consultancy operations. They run,
on average, a ten car fleet, but also
often operate some LCVs or
trucks. Kia’s research
reveals that these
businesses have
a very positive
outlook and
86 per cent
of these
companies
How to create a business fleet / step 1expect either slight or significant
business growth. Drivers in these
fleets also cover an average annual
distance of 23,014 miles.
The requirements of the business
also mean that reliability, comfort,
practicality and value are the
overriding criteria for purchase.
In small to medium size companies
where there is driver choice there
are some marked different
requirements and identifiers.
Like the job-need group, the
typical turnover is still between
£2-10m, but the average number of
employees stands at 133 with a
fleet size of eight cars, and many of
these firms will also often have
commercial vehicles.
The business growth outlook of
these, often younger, companies is
still high at 71 per cent. Interestingly,
these firms frequently spend a far
greater amount of time managing
their fleets, possibly because of a
greater mix of vehicles, than those
companies running job-need fleets.
The priority of these businesses
in terms of their vehicles is more
focused on the ease of ownership,
including the latest in-car technology
and vehicle comfort. This is perhaps
because the drivers cover even
higher distances with an average
of 24,776 miles per year.
What’s clear from Kia’s research is
that both groups appreciate help
running their vehicles, which is
exactly what this guide to fleet
management is designed to do.
So to find out how to improve your
business transport, read on. n
How to create a business fleet / step 1
Strong business relationships are important to Kia. Our expert team and
specialist business centre staff are on hand to help, whether you are
looking to purchase your first business car or an entire fleet of vehicles.
HERE TO HELP
Call 01932 283943 or email [email protected]
to contact our team.
Adrian FreemanRegional Business Sales ManagerWest
John HargreavesHead of Fleet and Remarketing
David WilliamsNational Business Sales Manager
Andrew DunsdonNational Leasing and Rental Manager
Robin WandragNational Contract Hire Relationship Manager
Lorraine MitchellRegional Business Sales ManagerScotland, Northern Ireland and North East
Ian WilsonRegional Business Sales ManagerEast
Steve RushtonRegional Business Sales ManagerNorth
Sara StanboroughRegional Business Sales ManagerSouth
Taxation is a key factor when buying a company car – here’s all you need to know to map the road ahead
> A TAXING DECISION
The single biggest driver of
company car decision-making,
and the most influential financial
factor, is a car’s CO2 emissions.
Measured in grams per kilometre,
the figure is defined by a European
test result before a car goes on sale
– a driver’s company car taxation, an
employer’s national insurance
contribution and the Vehicle Excise
Duty, or road tax, are all defined by
that figure. Intrinsically linked to a
car’s efficiency, it also gives a strong
guide as to the fuel cost that both
driver and company can expect to
incur, compared to rival models.
Benefit-in-kind
Benefit-in-kind taxation (BIK) is the
tax a driver pays for the privilege of
being given a company car. As an
employee benefit, the company car
is taxed on an equation of vehicle
cost and efficiency, so a cheap,
low-emitting vehicle will minimise
tax obligation, while an expensive
and inefficient one will leave the
driver facing a large tax bill.
The Government has the system
set up in bands, so cars fall into
different percentages of their P11D
price – the list price of the car
including VAT and delivery charges
but excluding first registration fee or
road tax – depending on the CO2
figure. At present, the lowest band
for conventional petrol or diesel
vehicles is the 11 per cent group for
those under 95 g/km emissions.
The basic rule of BIK is that low
emissions and a lower P11D price are
the best way to keep HMRC away
from your pay packet, while of
course making sure the car is
appropriate for the job in hand.
National Insurance
While BIK taxation is the big deal for
drivers, for companies it’s National
Insurance that should be a prime
focus but is sometimes forgotten.
Fortunately the priorities dovetail
with benefit-in-kind, in that it’s
P11D price and CO2 emissions that
define payments. Any car that is
available for employee’s private use,
be it a company car or a pool car, is
exposed to National Insurance. Only
vehicles that are solely for business
use, such as service engineers
travelling to appointments or pool
cars for employees to travel to a
temporary workplace, are exempt,
and it’s also worth bearing in mind
that National Insurance is also
payable on so-called ‘free fuel’ given
to drivers for private mileage.
Vehicle Excise Duty
Predictably, given the Government’s
taxation regime, Vehicle Excise Duty
(VED) is also CO2 emission based.
There are 13 bands lettered from
A-M, with the lowest, sub-100 g/km
cars, being exempt from VED
payments, while the M band for cars
over 255 g/km incurs an annual £500
bill for road tax. This can be paid
either annually or in six-month
doses, the latter working out 10 per
cent more expensive over the year.
The exception is the first tax disc.
To encourage people into lower-
emission cars, the Government has
introduced a separate set of charges
for the first registration year,
How to create a business fleet / step 2
The accountant will be very happy with a fleet of cars that are 95 g/km or under
though still in the same 13 CO2-
based categories. All band A-D
vehicles, that’s everything up to 130
g/km, are free for the first year, but
the charges ramp up heavily from
there, to the point where 255 g/km
cars and above cost a whopping
£1,090 for the first year VED.
It’s also worth noting that the
paper tax disc is being abolished
from the beginning of October 2014,
so there will be no need to display it
after that date.
Writing Down Allowance
Companies are able to claim capital
allowance on equipment for business
use, enabling firms to write down
the cost against their taxable
income. For cars, this, like all the
other tax policies, is CO2 based, but
the decisions can have major
ramifications for companies that buy
their vehicles outright rather than
leasing them.
Taking very low emission cars is
a massively advantageous move,
because anything under 96 g/km of
CO2 emissions is eligible for a 100 per
cent first-year write-down
allowance. That compares with 18
per cent per annum for cars of
96-130 g/km, and just 8 per cent,
per annum for cars over 130 g/km.
So cars bought outright that are over
130 g/km are something of a balance
sheet liability, while the accountant
will be very happy with a fleet of
cars that are 95 g/km or under. n
When it comes to finding the right cars for your company fleet, Kia has made it easy. You’ll find a range of tools at kia.co.uk/fleet to help you compare the figures across the Kia range. Plus, with many years’ combined experience in the fleet market, our business team has the expertise to help you select the perfect models to match both your team’s requirements and budget.Across the range, Kia’s EcoDynamics technology has been developed to help max the miles and save up to 12 per cent fuel usage.In particular, one Kia model which has earned its eco credentials and so impressed What Car? magazine that it named it winner of its Ultra Low Carbon Award at launch, is the Rio. Speaking at the time, What Car?’s Editor-in-Chief, Chas Hallett, praised Kia for its ‘dramatic progress’ in launching cars with the ‘lowest average CO2 emissions’.As comfortable to drive in the city as on long distance journeys, the 1.1 CRDi ‘1’ 74hp ISG 5-door model delivers up to 88.3mpg with 85 g/km CO2 emissions. With a list price of just £11,995, this frugal yet stylish model wins the hearts and minds of fleet managers, finance directors and user chooser drivers alike.
Carbon neutral: Kia’s
all-new Soul EV arrives in
the UK at the end of 2014RIO’S ECODYNAMIC DELIVERY
Call 01932 283943 or email [email protected]
to test drive the Kia range.
How to create a business fleet / step 2
Struggling to get a handle on the cost of fuelling your fleet? Here’s all you need to know to max the value of every last drop
> FUEL ECONOMY
Aside from the outlay of acquiring
or leasing the car itself, the
biggest cost associated with running
a company car is fuel. But it’s a
manageable cost, and there are a
variety of tactics that can have a
real impact on your outlay at the
pumps. Without doing anything
radical, you can improve your
company’s operational effectiveness.
Simple steps include a refuelling
policy to make sure drivers don’t fill
up at motorway service stations,
instead planning to stop at cheaper
sites. Other tactics could include
driver training, in-car tracking to
monitor driver behaviour and speed
limiters, as there is an exponential
rise in fuel use versus increased
speed – a limiter set at 70mph or
lower can bring impressive results.
Building a greener fleet
Fortunately, Government policy is
quite useful on this one, as the
current taxation-based drive by
Whitehall to encourage companies to
run lower-CO2 cars equates with
efficiency, as there’s a link between
emissions and fuel economy.
Aside from the various taxation
benefits, simply choosing the most
efficient car that’s suitable for the
job can make a substantial difference
to fuel spend over the working life of
a vehicle. Official fuel economy
figures of 70 or even 80mpg are now
available on hatchbacks perfectly
capable of undertaking most
company-related tasks, especially
those with high-mileage needs.
Then there’s the newer hybrid or
plug-in electric technology that can
be beneficial to certain tasks,
especially urban-based usage. Lower
mileage users are likely to find the
latest smaller capacity petrol
engines make more sense as they’re
cheaper than diesels to buy with a
fuel saving of around 8p per litre.
Mileage payments
There are two sets of figures
attached to the amount a driver can
reclaim for company mileage,
depending on whether they are using
their own vehicle or a company car.
For drivers provided with a
company vehicle, HM Revenue and
Customs sets out nine different
bands from 9p-24p per mile
depending on engine size and
the type of fuel used – petrol,
diesel or LPG. This is reviewed
every three months to allow for
fluctuating fuel prices, and is called
the Advisory Fuel Rate. The latest
rates can be found at www.hmrc.
gov.uk/cars/advisory_fuel_current
For drivers who use their own
vehicles for work, the Approved
Mileage Allowance Payment (AMAP)
is the Government-advised rate of
reimbursement. Last revised in 2011,
it allows drivers to reclaim 45p per
mile from their employer for the
first 10,000 business miles per tax
year, dropping to 25p per mile after
that. See www.hmrc.gov.uk/rates/
travel for the latest on AMAP rates.
Recording mileage
An old adage reigns supreme here
– if you can’t measure it then you
can’t manage it. The best way of
recording mileage is to use a fuel
card, which means you have a record
of every fill, giving both the price
paid per litre by the driver and the
fuel economy, as they are required
How to create a business fleet / step 3
A small incentive for those performing best can mean a big cost saving for a companyto give the vehicle mileage at point
of payment. Some companies have
taken to incentivising either fuel
economy or even pump price, and a
small reward for those performing
best can mean a big cost saving for
a company across its entire fleet,
depending on its size.
Private fuel
Some companies still offer payment
of employee’s private fuel as a
benefit, but this is something the
Government has been trying to
discourage by ramping up the
benefit-in-kind taxation.
HMRC sets out a value of private
fuel of £21,700 in the current
2014-15 period. The employee’s tax
payment is calculated in the same
way as the company car benefit-in-
kind, using the CO2 emissions figure
to set a percentage of the £21,700
that employees will lose from their
pay packet.
This means even a lower-rate tax
payer with an efficient car will have
to use a couple of thousand pounds
worth of private fuel to make it pay.
The HMRC website has a calculator
that shows the exact payments
involved to help work out if private
fuel is a benefit worth having.
In reality private fuel is rarely
worthwhile for individuals, and the
Government plans to further
disincentivise it in the future.
See www.hmrc.gov.uk/payerti/
exb/a-z/c/cars-fuel-value
If you think that fuel efficiency comes at the expense of style, Kia’s pro_cee’d will defy your expectations. A striking mix of coupé-like styling, premium features and value mean that it’s a firm favourite with fleet managers and drivers alike.With a P11D value starting at £17,440 and a refined 1.6 litre diesel engines, with power ranging from 98 to 133 bhp, innovative weight-reducing measures ensure high fuel efficiency. On models equipped with Kia’s innovative EcoDynamics technology – which can improve fuel efficiency by up to 12 per cent – the pro_cee’d delivers up to 78.5mpg with emissions as low as 100 g/km for this attractive C-segment model.Along with its sleek shape, the pro_cee’d features stylish LED daytime running lights, cornering lights, striking bold rear lamps and, alloy wheels. Inside, the cabin has a wealth of creature comforts including Bluetooth® with voice recognition and music streaming, iPod, AUX and USB connectivity, a 6-speaker audio system, air conditioning, a tilt and telescopic steering wheel, plus, on select models, Kia’s Flex Steer system which offers three modes of steering – comfort, normal or sport.
Top up time: A refuelling policy,
driver training and tracking can
help manage fuel costs
PRO_CEE’D WITH STYLE
How to create a business fleet / step 3
Call 01932 283943 or email [email protected]
to test drive the Kia range.
Ensuring that your employees are safe when out on the job is more than common sense, it’s a legal requirement
> KEEPING IT SAFE ON THE ROAD
It it important to ensure that drivers are aware of their own obligations too
The Corporate Manslaughter
and Corporate Homicide Act
2007 marked an important change
to the management of work-related
road safety. Coming into effect from
6 April 2008, it enshrined the duty
of care that all employers have to
their staff in terms of doing
everything possible to ensure they
can safely carry out their duties.
On the road
From a driving perspective, the
legislation covers a wide range of
responsibilities, including whether
a vehicle provided is fit for purpose
and correctly maintained. In addition,
it is the company’s duty to ensure
the driver is licensed, insured and not
under pressure to complete too
many appointments, and therefore
drive too far or too fast.
Companies can be found guilty of
corporate manslaughter, ‘As a result
of serious management failures
resulting in a gross breach of duty of
care’, according to the Health and
Safety Executive.
The key thing from a company’s
perspective is that prosecutions will
be of the firm itself, rather than
individuals, though the directors,
board members or other individuals
can still be pursued separately under
criminal or health and safety law.
Though there haven’t yet been any
driving-related prosecutions, several
firms have been found guilty under
the act, and hit by heavy fines and
the corresponding bad publicity and
reputational damage that comes
with a legal case.
Simple processes that are well-
documented and updated can
prevent problems, with regular
checking of driver licences, vehicle
maintenance, MOT and insurance
documentation being the first steps.
Additionally, it is important to ensure
that drivers are aware of their own
obligations too, in terms of checking
tyres and vehicle wear and tear on
a regular basis.
There are many risk management
experts in the marketplace that can
give more detailed advice on how to
ensure your company is safe from
prosecution, should the unthinkable
happen, but doing the basics right
with a clear policy, adhered to,
endorsed and enforced by senior
management, is a good place to
start. See www.hse.gov.uk/
corpmanslaughter/about for details.
Grey fleet
Ironically, in many ways the biggest
danger to a company’s risk
management strategy are vehicles
not owned by the business at all.
Grey fleet is the term given to
employees who use their own
vehicles for work business.
How to create a business fleet / step 4
If a worker is required to use their
own car for business, then they are
subject to the same regulations as
those drivers given a company car.
So the business needs to know the
vehicle in question is properly insured
for business use over and above
commuting, that it has been correctly
serviced, has a current MOT and the
driver has a valid driving licence.
This level of administration,
sometimes for drivers who may only
occasionally be required to use their
car for work, has led to some firms
switching to rental cars or pool cars.
A grey fleet is flexible and
sometimes a necessary part of
business operation, but neglecting it
in fleet policy and administration
terms could leave a company wide
open to scrutiny and prosecution if
something untoward occurs while
a worker is travelling on a journey
while doing their job. n
When it comes to safety, Kia’s range of vehicles are equipped with the latest technologies to ensure all passengers ride securely and in comfort. In fact, seven Kia models have achieved a maximum 5-star Euro NCAP safety rating from Europe’s leading road safety organisation,Kia’s 7-seat Carens was one of only two compact MPV cars to earn a maximum 5-star safety rating last year. Achieving high scores for adult and child passenger safety, safety equipment and pedestrian protection, the Carens is perfect for carrying large loads for business, and the ideal size for an active family life after office hours. Standard safety equipment includes six airbags, seatbelt reminders for all occupants, Electronic Stability Control (ESC), Hill-start Assist Control (HAC) to prevent roll-back and Emergency Stop Signalling (ESS) which flashes the brake lights to alert other motorists when the driver is making an emergency stop. With a competitive P11D, sporty styling, clever design features and premium materials throughout, the Carens is an outstanding MPV choice.
EURO NCAP’S TOUGH TEST WINNER
Final checks: Lights and tyres should be built into a regular driver maintenance checklist
How to create a business fleet / step 4
Call 01932 283943 or email [email protected]
to test drive the Kia range.
If you are still in growth phase, leasing might offer an easier way to establish your business fleet
> FLEET FUNDING - BUY OR LEASE?
Finance is one of the key areas
to navigate when considering
a company fleet. Would you rather
invest your business capital up front
or stagger costs? In other words, do
you want to buy or lease your cars?
Unfortunately there isn’t a one-size-
fits-all answer, however, there are a
few simple questions that will guide
you to the perfect solution. The main
two questions to ask yourself and
your business are; do you have the
capital to buy cars outright, and do
you have the staffing resource to
manage a fleet?
Spend or save?
At a very basic level, if you’ve got the
money and staff then at least you
know you could simply buy and run
the cars yourself. However, you still
may not want to go down this path
for various reasons.
Taking the finance side first, this
needs to be broken down further.
Even if you have the funds to go out
and buy company cars, you may be
better off using that capital to help
grow your business. In which case,
leasing vehicles may be a better
option as your company develops.
Daily management
Within the broad spectrum of
leasing, you would then have a host
of options. If you want a simple
contract hire agreement where all
you’re provided with is a vehicle,
that’s fine, but you will also need to
consider how you’re going to insure
those vehicles, how you’re going to
service them, and what will you do
if one breaks down or is off the road
due to an accident?
It’s at this point you need to
consider your own skills and staffing.
You may have the resources to buy
cars, but what about running the
cars and also the drivers?
We’ll come on to managing drivers
in a future installment of our guide,
but even looking after a small fleet
of vehicles can be a complex task if
you don’t know what you’re doing.
This is where fleet management
firms come in. Often these are
attached to leasing companies,
but there are dedicated fleet
management businesses and it’s
worth remembering that you can
use separate firms for your leasing
and fleet management.
Who to choose?
If you do choose to use a leasing
company then you will need to work
out precisely what it is that you
want them to do for you against
how much it will cost.
The easiest way to do this is first
to read up (in guides such as this)
How to create a business fleet / step 5
You can use separate firms for your leasing and fleet management
about the basics that you could
potentially need, before contacting
a few leasing firms. The criteria for
selection is obviously different for
each company, but it could be helpful
to ask your business contacts for
their recommendations. Alternatively
contact an organisation such as the
British Vehicle and Rental Leasing
Association for advice.
The best leasing and fleet
management firms will conduct a
free fleet audit to match their
services against your requirements.
A handful of these will then give you
two things. They will allow you to
see how they work and provide
detailed information should you then
wish to opt for a tender process – be
sure to ask for a shortlist of clients
they’ve worked with.
After that it’s a simple case of
seeing which company offers what
you need at the best price. n
QUESTIONS TO ASK
• Do you have enough capital or
finance available up front?
• Do you have the skills and
experience to manage your
vehicles and drivers?
• Do you want to have a third
party running your cars?
• Do you want more or less
long-term flexibility?
• Would a big leasing firm’s
additional services help your
business?
Kia has partnered with one of the UK’s leading fleet management companies, ALD Automotive to create a unique fleet solution, Kia Contract Hire. With a range of highly cost-effective solutions, the 3-door 1.0 litre Picanto ‘1’ starts at just £99 per month when taken over 36-months and with an average 10,000 annual mileage. With Kia Contract Hire, you know exactly what you are paying every month for your car – the fixed low rental payments include Vehicle Excise Duty for the duration of the contract and there are no depreciation or vehicle disposal costs to worry about.
AN EASY SOLUTION
Call 01932 283943 or email [email protected]
to test drive the Kia range.
City slicker: Kia’s Picanto
offers a cost-effective and
affordable urban vehicle
How to create a business fleet / step 5
Looking beyond the initial costs of investing in a fleet, how much will it cost to keep your cars road ready?
> MANAGEABLE MAINTENANCE
There is much more to the cost
of a vehicle than the simple
acquisition price or lease rate,
and this is where some clever fleet
management and spending a bit of
time scrutinising the figures can pay
dividends, because the cheapest cars
to buy or lease may not be the ones
that work out cheaper overall. A car
that’s a little more expensive at the
front end but much more efficient
will incur reduced penalties in terms
of benefit-in-kind tax for the driver,
and National Insurance, fuel use and
Vehicle Excise Duty for the company.
The basic rule that the most
efficient model is best is a good
place to start with running costs,
although that has to be balanced
against the initial purchase price to
make sure the long-term benefits
outweigh the short-term gain.
Think long-term
Costs that need to be factored in
start with a vehicle’s residual value
– the amount that will be retained
when the car is sold on. Fuel,
insurance and National Insurance are
three areas that even the most basic
of whole-life cost investigation
needs to take into account. Other
areas to consider, depending on how
detailed an analysis is deemed
necessary and worthwhile, include
the cost of finance to buy the vehicle
in the first place, service,
maintenance and repair costs.
Pump decision
Choice of fuel was previously a
foregone conclusion, because diesel
is the most CO2 efficient option and
the tax regime rewards CO2
efficiency, so the company car
market has gradually migrated
across to the black pump.
But, like many things in the fleet
industry, that viewpoint is now
How to create a business fleet / step 6
For lower mileage drivers, petrol rather than diesel is usually the intelligent choice
shifting thanks to a combination of
considerations. Firstly, automotive
manufacturers have ploughed a lot
of investment into a new breed of
low-capacity turbocharged engines,
so units offer the fuel economy of
a smaller engine with the power of
a larger one.
This, combined with the seemingly
settled differential of at least 8p per
litre cheaper for unleaded means
that for lower mileage drivers, petrol
rather than diesel is usually the
intelligent choice.
Maintenance costs
There also seems to be an imbalance
between the attention paid to
choosing and acquiring a car, and
managing the so-called in-life costs
of that vehicle. That’s especially true
among smaller businesses that don’t
have a dedicated fleet manager and
where the responsibility instead falls
on procurement, finance or even HR
specialists.
The attitude seems to be a
presumption that once a vehicle is
on fleet, its costs are largely fixed.
But with service, maintenance and
repair in particular, that’s far from
the case. For starters, and despite
common belief, there’s no
requirement to have new cars
serviced at a franchised dealer,
as long as the independent specialist
is accredited to manufacturer
standards and uses the same quality
of replacement parts. And franchised
dealers seem to be waking up to the
threat from independents, now
introducing service charters,
packages and nationwide fixed-price
servicing aimed at improving the
offering for companies and their
drivers.
Collect and deliver services are also
becoming more commonplace, so the
car can be looked after while the
driver is at work and returned before
they are ready to head home.
But downtime is also a major
consideration. If a main dealer can
turn a repair around a couple of days
quicker than an independent, or vice
versa, then the cost compared with
the inconvenience of having that
worker off the road needs to be
factored in, especially if a hire car is
required in the intervening period. n
To make your car maintenance simple, Kia has created Care-3, a cost-effective way to manage the cost of servicing your fleet. Available on new models and cars purchased in the last 11 months, Care-3 offers a fixed cost package for three or five services to ensure that your fleet investment is looked after during its lifetime and can be incorporated to include the first MOT. Additionally, Care-3 is transferable to a new owner if you sell your Kia, enhancing the residual value of your cars. Visit kia.co.uk/care3 or contact your nearest Kia dealership for details.
Carbon neutral:
Kia’s Soul EV arrives in the
UK at the end of 2014
AS EASY AS CARE-3
Call 01932 283943 or email [email protected]
to test drive the Kia range.
Quality control: Kia’s Nottingham Academy ensures its mechanics are trained to the highest standard
How to create a business fleet / step 6
Cars sorted? Now it’s time to tackle the greatest variable in your fleet force, your team of drivers
> EDUCATING DRIVERS
So you’ve chosen your cars,
got the funding sorted out,
you know how much tax you’re
going to pay, you’ve worked out the
best way to fuel them, you’ve even
thought about the fleet’s safety and
environmental credentials, but now
you have to let your staff behind
the wheel. Unlike cars, people’s
behaviour is not predictable and so
they need far greater management.
This means it’s vital to get your
communications spot on to ensure
your business fleet runs smoothly.
Let’s talk
Possibly the best thing to keep in
mind when communicating with
company car drivers is that the car
is either a perk or a tool for the job.
In both instances, it is unlikely that
drivers will care for the vehicle as
much as they would if it was their
own investment. This is just human
nature and numerous surveys have
shown that damage to company cars
always happens at a higher rate
than in privately-owned cars. This
makes communication of your
expectations even more important.
By the book
We’ve discussed legislation and
risk management previously, but
communicating on these vitally
important areas is essential.
All drivers should be given a copy
of your company’s fleet handbook
and asked to sign to confirm that
they have read and understand it.
The best way to ensure that this is
achieved is to incentivise staff.
So, while no one really wants to
wade through a hefty rule-book,
if you periodically run a quiz to see
which of your drivers knows the
most and then offer a prize for the
winner, you can achieve a positive
company culture.
This technique can also be used to
ensure other messages are being
taken on board by drivers. For
instance, some fleets offer a
temporary upgrade in vehicle for
drivers who obtain the best fuel
consumption, or purchase the lowest
average per litre fuel price. Being
rewarded with driving the best car in
the fleet is often a tangible ‘perk’
among company drivers.
At the other end of the spectrum,
the person responsible for managing
the fleet will also have to monitor
vehicle accident rates and then offer
help in the form of advice and
training to those drivers that need it.
Positive support
The best communication policy is to
ensure that there is a supportive
company culture that allows drivers
to report vehicle damage without
fear of recrimination.
However, this should be monitored
closely and acted upon as minor
damage is often a sign of poor driver
skill which could lead to a more
significant accident in the future.
Drivers should know that training,
both theoretical and practical, is
there to help those with the worst
records, and be encouraged to use it.
Fleet managers should also take
on board comments from drivers
about why accidents happen, as well
as the accident data itself. For
instance, if drivers report that the
office car park is difficult to navigate,
then perhaps either the site may
need redesigning or special measures
for drivers are needed in this area –
such as making everyone reverse
into parking spaces.
How to create a business fleet / step 7
Drivers should know that training, both theoretical and practical, is there to help
Clear policy
Beyond safety, fleet managers
should also communicate why
certain decisions are made. For
instance if you’ve put a CO2 cap in
place, explain why – it will cut tax
bills and help the environment. If you
are busy with other areas of the
business, or communicating with
your drivers on a daily basis just isn’t
practicable or cost-effective, there is
an alternative approach. Talk with
one of the many fleet management
companies who are able to
implement and maintain a fleet
driver policy on your behalf. n
Advanced skills: Your fleet drivers
may benefit from a refresher course
THINGS TO REMEMBER
• Cars are either perks or tools
• Monitor driver damage and
accident rates
• Offer driver training
• Use incentives to increase
compliance
How to create a business fleet / step 7