One of the main objectives was to introduce more environmentally friendly policies and align their practices with those of the market and reduce costs.
The conclusion is from the most recent Report 2023 Company Car Benefits Survey – Portugal, developed by WTW, which indicates that the main changes made in this period took place in the brands and models of assigned cars and gave the possibility to choose between a company car or a car allowance due to your status in the company or based on job requirements.
The report also reveals that 59% of the companies surveyed in Portugal offer employees a company car or a subsidy as an alternative to a car. Only 23.5% offer both options to employees eligible for these benefits.
Eligibility levels for company car plans, excluding the subsidy alternative, are highest in sales-related professional categories – 61.3% at manager level and 64% at professional level – and business unit head and country manager reaching more than 60%.
With regard to the exclusive attribution of a subsidy as an alternative to the car or giving the option to choose between one of the two benefits, the categories most eligible for this choice are found at the Executive levels of business unit head and country manager , middle manager and senior professional (non-sales).
According to the WTW study, more than half of the companies allow employees to choose their vehicle from a range of brands and models defined by the organisation, with BMW, Audi and Volkswagen being the most commonly chosen brands.
Sanda Bento, associate director at WTW Portugal, states that “the car continues to be one of the benefits most valued by employees, becoming one of the items that enters into the negotiation of those who are about to change companies. And, in a market where there is competition for professionals, companies have used this benefit as an element of attraction and retention, despite the high costs they represent”.
The official adds that “even though it is possible to reduce the financial burden of the vehicle fleet if companies make decisions based on their taxation, there is effectively no right answer when it comes to which is the best option for each specific case, without a prior analysis to all costs and impact for the company, but also for its employees”.