Cut Costs by Cutting Down on Your Mileage

It seems that the economy is faring no better. With no prospects for growth in the near future, a lot of companies are looking afresh at ways to save money.  One of the ways in which you can do this is cutting down on company cars.  Many companies offer company cars to their employees and then proceed to pay for their fuel usage.  These employees often travel to work alone and travel to the shops and away on holiday.  So, how can you cut down on their cost?

Pool Your Resources

image of solar carOne thing that a lot of companies are turning back to is the idea of carpooling.  Carpooling is the idea of sharing journeys – especially to work – in order to save on the cost of fuel and UK companies are rapidly picking up on this idea as a means to shave a bit more off that budget.  London has seen the biggest uptake – or, rather, re-uptake – of carpooling, with an estimated 22% of commuters sharing a ride to work.  This is especially useful in London, where the busy roads and congestion is also lessened and avoided by some.

One option for a company would be to offer a certain number of cars for their employees to use.  You could book a car if you were going to need it and book a seat in a car if you’d like a lift.  The cars are then allocated among the workforce.  This means that the company only has to provide cars for one in every 3 employees compared to each and every one, cutting more unnecessary costs and also, as a nice side effect, doing their bit for the environment.

Shuttling Along

Another option for companies is to provide a shuttle bus service.  A bus can be organised that picks up employees to take them into the office.  By polling employees to find the best places to stop, the bus can make life easier for a lot of employees: no more driving in the rush hour every morning.  The bus idea is one that has been taken up by a lot of companies, including IBM, who offer their shuttle bus service in each city they are present in.

One potential problem with a shuttle bus, however, is that it may elongate some employees journey’s while also meaning that those who like to work late will have to find another way home.  It is still a good option for a lot of companies, however.

I want to Ride my Bicycle

One more option – and one taken up by a lot of companies – is to offer secure parking for bikes and encouraging employees to ride to work.  A lot of companies, when moving office, have requested the building of showers so that their employees can cycle to work and then shower, safely knowing that they are fresh and ready for work.  Cycling completely negates the fuel cost and workers will also feel better and work harder due to increased fitness.  With the government having introduced a lot of cycle to work schemes, this is the perfect opportunity for companies to drastically reduce their car costs, although a company car system should be put in place for when a car is necessary.  Clients still have to be met and driven to meetings, after all.

Whichever choice is made, it is essential that the company ensures every car is insured for each employee.  Insurance will need to be organised to allow multiple drivers and the company will also need to make sure they have motor traders insurance in place just in case – accidents do happen.

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