Medical technologies multi-national - Case Study
In May 2008 over a third of this client’s 330 employees were customer facing sales staff that spent most of the working week out on the road. A vehicle is an essential tool for a medical device sales person and the company provided car allowances and company sponsored fuel cards to support the travel needs of these employees. A number of company cars were also leased by the business.
Novated leasing was offered through a well known global fleet manager, however a mix of other smaller suppliers had gradually appeared, most managing just one lease each. In total, less than ten employees had taken up the benefit of salary packaging their cars. Most employees had utilised their car allowances to set up personal finance arrangements, such as commercial hire purchases, with a variety of different finance companies.Tax deductions were being claimed through personal tax returns, sometimes in conjunction with tax variation forms that were submitted to payroll.
Human Resources decided to go to market in search of a new novated lease supplier, one that they could partner with to drive the benefit more effectively than it had been in the past.
The primary drivers for making this change were as follows:
Desire for a contemporary, best practice vehicle offering
This client was already considered an industry leader in terms of being an ‘employer of choice’. They are regular participants in Best Employer Accreditation Programs and have been awarded many salutations from these over the years. When this client intended to overhaul its approach to vehicle policy, nothing short of best practice was going to suffice. This was one of the main drivers behind the company’s search for a new supplier. In an increasingly competitive candidate's market, the business was looking at ways to improve their employment offering. Providing the highest quality employment standards would empower them to attract and retain the very best people in the industry.
From the poor level of adoption, it was obvious that employees weren’t seeing value in the existing novated lease offering. The company knew the inherent value of salary packaging a car, however the existing supply strategy was not capitalising on this effectively.
Lack of customer service from fleet manager
The existing preferred supplier had not endeared themselves to the client’s employee base. The remuneration and benefits department had received complaints around the ridiculously long time it seemed to take to quote and then set up a lease. Some employees had simply given up, and some had never even had their phone calls returned.
Corporate social responsibility
In order to bring their vehicle policy in line with their underlying principles and values, the business was looking for ways to reduce their carbon footprint as much as possible.
As a large organisation specialising in fleet management, the existing provider was ill equipped to align with best practice, and unable to resolve these problems.
Best practice fit
Autopia’s focus on delivering vehicle and tax expertise, personalised service and operational excellence has enabled employees and the business to realise the full potential of the benefit – a best practice benefit for a best practice employer.
Through the re-launch of the vehicle salary packaging benefit and Autopia’s ongoing communication and management practices, the number of employees adopting novated leasing has increased five fold. Employees are now realising the full value delivered by this benefit, and they’re taking full advantage of it.
Autopia’s unique consultancy service puts all employees in direct line contact with their very own Vehicle Benefits Specialist – no call centres, no queues, and quotes are provided live online during the initial consultation. The service issues of the previous suppliers have disappeared, and because employees only ever deal with one point of contact throughout the life of the lease, they are more satisfied than ever.
All vehicles leased with Autopia come with a year’s worth of greenhouse gas emissions offset facility - paid for by Autopia, and enabled by Greenfleet.
In November 2008, almost a third of this client’s employees attended Autopia’s information sessions re-launching the benefit. One-on-one consultations began immediately after these sessions.
Company cars have now been phased out, reducing liability and administration for the business.
Autopia continue to run quarterly sessions for new employees, and over 50 employees now salary package their cars with a novated lease.