HR paattajat tutkimus

Drivalia Lease Finland’s HR survey: The popularity of company cars has remained stable

In April, Drivalia Lease Finland asked HR decision-makers of companies about the meaning and future of car benefits. A total of 66 HR decision-makers answered the survey. Almost 70 percent of HR decision-makers say that the company car benefit's popularity has remained unchanged and even increased in part among employees.
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According to Drivalia Lease Finland's survey, the uncertainty of the continuation of tax benefits and incentives for company cars, and especially fully electric cars, also created uncertainty for companies' car purchases. The government's controversial decision to extend tax support for fully electric company cars until the end of 2029 has been welcomed by companies.

– Electric cars have brought new kinds of questions to be solved for company car drivers and for companies, and we wanted to investigate how HR decision-makers of Finnish companies see the topic now and which current issues cause headaches, Drivalia Lease Finland's Commercial Director Vesa Kalske says.

According to the survey, in almost 80 percent of companies, all or most of the employees entitled to a company car have a car benefit as part of the total salary, which means that the tax value of the car has a straightforward meaning when choosing a car. More than 68 percent of the respondents say that the popularity of the car benefit among employees has remained unchanged or its importance has increased.

– The importance of the car as an employee benefit has maintained its position as a significant benefit, and the increase in employee bicycles and other new mobility services have not eaten away the importance of company car use. The answers show, among other things, that electric cars and the related tax benefits have increased interest in company cars, says Kalske.

Car benefit helps with recruitment and commitment

Kalske notes that even though online meetings and other forms of communication have reduced face-to-face meetings, a company car is necessary for sales and customer work, for example. A third of the respondents stated that the primary reason for providing a company car is that the car is needed to perform work tasks. Drivalia Lease Finland also encourages employees to have personal meetings in addition to remote meetings.

Drivalia Lease Finland's Head of Corporate Business Tiina Märijärvi says that the main reasons for offering a car benefit in companies are the importance of a company car in recruiting and engaging key personnel. One important reason is also maintaining the company's competitiveness compared to other companies in the industry. They want to keep good employees with the help of a comprehensive car benefit that is part of the salary.

– Personnel, environmental and cost factors all play some role in companies' car policies, but their weight varies. According to the survey, cost optimization is the most important, followed by the personnel perspective and competitiveness compared to other companies, and third is environmental responsibility, such as reducing emissions. From the open answers, it can be concluded that environmental responsibility will be emphasized in the future. Even now, 88 percent of respondents see the company's environmental goals either strongly or a fair amount in their car policy, Märijärvi states.

Charging electric cars has been included in the car policy

Organizing the charging of electric cars is seen as a challenge for company car use, and charging has been included in the company's car policy. More than 55 percent of companies make it possible to purchase a home charging device as an accessory for the car. About 14 percent of companies list a home charging device as mandatory equipment in their car policy, and the same number of companies only grant a usage benefit for electric cars.

– The transformation of company cars into fully electric cars or plug-in hybrids has also been a change for the Tax Administration, as charging options and tax benefits have been included in leasing contracts. As a leasing company, we have cooperated with the Finnish Tax Administration and, through practical examples, shared information on what kinds of issues the tax authority should align and what kinds of issues the companies must solve from the charging point of view, Märijärvi clarifies.

The effects of inflation are also visible in companies in the costs of driving. According to Kalske, 60 percent of respondents say that there is pressure to reduce costs.

– The company car service package consists of many factors. Our task is to keep our customers up to date on changes made by the tax authority and the government and to advise on cost-effective choices. We don't assume that our customers follow the fast-changing trends in the industry, that's what we're for. As part of our service, we look for optimal solutions and savings targets for the cost of driving for the customer. A lot can be accomplished with that alone, when choosing the right size and type of car for the right use and optimizing the car's usage time, Kalske sums up.

The results of the survey conducted by Drivalia Lease Finland for customer companies’ HR managers were announced last week at the Strategy Talk event in Helsinki. A total of 66 HR decision-makers answered the survey.

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May 16, 2024
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