Employee Benefits
The mobility budget: the future of corporate mobility
The mobility budget: the future of corporate mobility
Employee Benefits
Aug 4, 2023
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More and more companies are looking at the topic of mobility budget and for good reason. This option combines employee comfort, respect for the environment and the flexibility companies need. Let's take a closer look at this concept.
In the latest event by Fleet Europe, the Smart Mobility Conference, our Director of Strategy and Operations, Fabio Griemens, tackled a hot topic: “Mobility budget, fantasy or reality?”, in which he examines this trend and the benefits for companies and employees.
The mobility budget is a benefit scheme for employees, in which they can avail of a monthly allowance across different transportation modes at the company’s expense, for private or commuting purposes. At FREE NOW for Business, this is a vision we share, believe in, and want to help companies implement.
A mobility budget tackles many mobility challenges
A mobility budget tackles many mobility challenges
In countries like Germany, 12.8 million people commute to work in another district. European commuters spend 69 minutes on average commuting per day. The average person living in Paris spends 65 hours in traffic per year. This number sits at 49 in Munich and 35 in Stockholm and the commonality across all markets is that it is potentially leading to a loss of productivity (Source: EY white paper). However, companies are doing little to provide employees with alternatives for commuting, with subsidies for costly company cars being the only option.
Furthermore, Fleet Europe asked employees which types of benefit they would rather have. 71% of the respondents answered that they expect their employer to invest in their private mobility, not far behind health benefits (77%) and training and education (84%).
As for the most popular mobility benefits offered in Germany, the Mercer survey pointed to MaaS (11%) and carsharing solutions (12%), public transport (27%), and bike leasing (38%), with car benefits (82%) most prominent. (Source: Fleet Europe)
Furthermore, Fleet Europe asked employees which types of benefit they would rather have. 71% of the respondents answered that they expect their employer to invest in their private mobility, not far behind health benefits (77%) and training and education (84%).
As for the most popular mobility benefits offered in Germany, the Mercer survey pointed to MaaS (11%) and carsharing solutions (12%), public transport (27%), and bike leasing (38%), with car benefits (82%) most prominent. (Source: Fleet Europe)
An ideal solution for both employees & companies
An ideal solution for both employees & companies
The mobility budget alleviates many challenges on both the employee & employer side:
- Employees are looking for benefits beyond the typical salary and when it comes to their daily mobility needs, they want one app that also offers flexibility in the type of transport used.
- On the other hand, companies are looking for efficiency in setup and use, an easy way to pay and expense, as well as transport that is safe, green, and compliant. Companies want to be seen as attractive employers when searching for talent but have their own requirements as well.
In conclusion, employees and companies are both looking for more flexibility, sustainability and freedom when it comes to mobility. The mobility budget answers all three needs and seems to have a bright future ahead.
Want to learn more about mobility budgets and assess their viability for your company?
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