The future is many things. Predictable is not one of them. Maybe the Patriots will make it to the Super Bowl next year, and maybe you’ll find five dollars on the ground today. The fact remains, those are just maybes. And because it doesn’t pay to sink money into maybes (especially when it comes to the mobile workforce) companies rely on the closest thing to foresight: data.
It’s hard to ignore a good data set. Big decisions don’t get approved unless the data supports it. When we see one company doing something, it’s a point of interest. When we see a group of companies doing something, it’s a trend. Interested in seeing how you compare with other companies in your industry? You’re going to want to look at the 2018 Mobile Workforce Benchmark Report.
The Mobile Workforce Benchmark Report is the result of data from over 2,000 companies across multiple industries. Though mobile workforces generally imply vehicle programs—and we share a wealth of data on company car programs, car allowance programs, cents-per-mile programs and Fixed and Variable Rate programs—this report also dives into vehicle policy, driver safety and mileage tracking trends.
You can find those in the report itself, but there are some themes that might peak your interest if you aren’t checking it out already:
There are several factors that contribute to cost control challenges. You don’t just need visibility into the expenses, you also need to know where to focus. Fuel is one of the highest expenditures in a vehicle program. And guess what just went up in price? Just take a look at our Fuel Trend Report if you’re curious to know what impact that might have on the growing number in your T&E expenses.
But this really depends on what vehicle program your company has. Companies that support their mobile workforces with fleet vehicles will experience the most cost control challenges. Depreciation is on the rise, along with the price of new vehicles. If you have a fleet and it includes one of the top 10 depreciators, cost control may seem more like a fairy tale than an applicable measure.
Different vehicle programs feel the impact of risk and liability differently. Let’s break it down by program:
A company car program has one main source of risk and liability: fleet vehicle accidents. If an employee is found at fault in an accident involving a fleet vehicle, your company is likely to be the target of the lawsuit. And did you know? 40% of vehicle accidents are work related. The more severe the accident, the higher the payout.
Car allowance programs allow mobile workers to drive their own vehicles for work, so the company is not directly liable in the event of an accident.
As for tax law compliance, the mobile worker and the company are both taxed heavily on the car allowance.
Cents-per-mile (CPM) programs also involve mobile workers driving their own vehicles for work, so there’s no liability there.
Keep in mind that the IRS requires mileage logs to include specific information to make reimbursements tax-free. If this is missing or exaggerated it leaves the company exposed to an audit.
Fixed and Variable Rate programs, as with car allowance and CPM, allow mobile workers to drive their own vehicles.
The Fixed and Variable Rate (FAVR) program faces the same risk as the CPM program. Fortunately, there are apps that automate this process.
Accidents are on the rise. The 2018 Driver Safety Risk Report details the troubling increase in automotive accidents. The more time your mobile workforce spends on the road, the more likely they are to see an accident (and the more relevant risk and liability becomes). Safety should be a number one priority for the employees in your company, both in office buildings and on the road. Know that safety options are out there that don’t rely on acting after there is a problem.
Gaining insights into your mobile workforce is difficult when they are in various locations with fluid schedules. How do you measure productivity when you have nothing to compare it to but the same untracked performance year after year? Many companies are unaware of the possibilities automated mileage tracking apps afford program administrators.
If you want to be involved and see the benchmark report early, you can share your email address with us here. We will send the survey when we’re ready to start the process again, likely in the early spring of next year.
Elementary school posters encourage individuality, the orange fish swimming in a sea of blue fish. But there’s room to be unique and avoid bad decision making. Not making the most of your vehicle program? That’s bad decision making. This report will help you compare yourself with others in your industry and see how universal your vehicle program troubles might be. Beyond that, it will give you insight into best practices, avenues you might not have considered exploring into cost saving, better productivity and reduced risk.