How Employee Travel Benefits are Changing (and Why That’s Important to HR Teams)
When you’re recruiting for hard-to-fill roles, what’s your company doing to stand out?
Throwing money at high-in-demand candidates will just bust your budget. If you want to stay ahead in today’s job market, your benefits package can give you the edge without costing a fortune.?
Candidates consistently list travel benefits as one of the leading motivators when choosing a role - and with fuel prices rising - they’re more powerful than ever.?
Read this blog to learn how employee travel benefits are changing. And discover how to turn your benefits package into a candidate magnet in 2023.?
Company cars are decreasing as an employee benefit?
When someone mentions travel benefits, do you immediately think of company cars? Well that’s not surprising. It’s currently the most popular transport benefits companies offer, with 90% of businesses offering this.
But the popularity of company cars is about to nose dive - from 90% in 2022 to just 37% in three years' time!
Why’s this change important to HR teams?
This shift away from traditional benefits shows companies are mixing up their compensation packages to attract new talent.
Candidates’ needs have changed over the last decade - so offering the same benefits package as ten years ago won’t attract candidates like it used to. Of course, this doesn’t mean the end of the company car. It’ll always be a useful asset for employees who have to travel long distances for their job. But for employees who live in cities and work from home - a company car just isn’t a top priority anymore.
So what will companies offer instead? Mobility budgets look set to take over…
Mobility budgets will become the most popular benefit
Have you heard of a mobility budget? Although this employee travel benefit is fairly new, it’s making waves in the comp & ben scene.?
Basically, a?mobility budget ?is a monthly allowance you give employees to use for travel. Employees can use it for a range of transport options, such as taxis, carsharing, and eco-friendly options like eScooters and eMopeds. You can give employees a mobility budget to use for their commute or just in their free time.
So, now you know what a mobility budget is - how popular is this benefit going to become? Well,?pretty big: A recent?FREE NOW for business survey , found that currently, around 21% of companies offer their employees a mobility budget. This figure is set to double by more than 52% in the next three years!
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Why’s this change important to HR teams?
The uptake of the mobility budget shows HR teams are adapting their benefits to meet the changing needs of today’s candidates. Here’s how they’re changing benefits packages:
Offering eco-friendly employee benefits
Candidates care about the earth - and they expect their employers to as well! Offering?eco-friendly transport benefits ?is crucial to meet today’s expectations.?
Adopting benefits that remote employees love
There’s no point offering free fruit in the office if no one’s there to eat it. Businesses are shifting to offer benefits employees can use in their free time.?
Adjusting benefits to meet tighter HR budgets
Inflation is pushing salary budgets to the limit. Reducing company cars and introducing a monthly allowance allows HR to accurately forecast and maintain their budget.?
HR teams want benefits with more flexibility
Over 75% of HR professionals and fleet managers stated they were interested in alternative employee transport benefits because they were more flexible for employees.?
This desire for flexibility is not surprising. In today’s digital world, we’ve all become used to doing things how and when we want. For example, when was the last time you watched terrestrial TV with scheduled programmes rather than choosing a show from a streaming service??
We’re all used to doing things how we want when we want. So employee benefits are starting to reflect that.?
Why’s this change important to HR teams?
For too long, comp and ben packages have stuck to the status quo. But this shift to more flexible benefits shows now’s the time to push benefits packages into the 21st century.
2023 is the year to overhaul employee benefits. Ask yourself, does your package offer benefits that employees can make bespoke to their needs? Are your benefits digital and easy to use - or do employees still have to run everything past your team?
If you want to learn more about how new employee transport benefits can help you build a more cost-effective and competitive package, read our white paper ‘Transport Benefits: The secret to attracting and retaining top talent.