Can You Place a Dollar Amount on the Value of Employee Retention?
Our blog is about new perspectives on total cost of ownership as it pertains to a company’s fleet. What exactly does TCO mean to you? To most, it is a measure of how much any particular vehicle will cost to lease and operate over its lifetime. These dollars are outright expenses expected to contribute to increases in sales revenue.
But a company vehicle isn’t simply a business expense, and it’s not all about dollars. That vehicle can also be used as a tool to foster warm fuzzies about the company. For most drivers, a vehicle that they do not have to make payments on or worry about the maintenance of is a great luxury. This element of the company vehicle makes the equation a bit more complicated than a simple cents per mile cost of ownership calculation.
Can a new company vehicle be used to reward a top sales rep or to entice a particularly talented candidate away from another position? I believe so. The vehicle can also be seen as a work perk, much like company sponsored health insurance or tuition reimbursement.
It is widely accepted that happier employees tend to be more productive and loyal and few things make Americans happier than cars (well, except maybe cheeseburgers). What price can you put on employee satisfaction as it relates to their company vehicle? Is a more productive employee worth a reduction of 2 cents per mile on a vehicle’s TCO? More? Less?
How do you view the company vehicle – as a perk, a necessary evil, an expense?
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