Payroll cost

How do you know if a mobility budget is for your business?

Jochen Moerman
April 23, 2024

Looking for tools to determine if a mobility budget is for your business? Find out all about it in this blog post.

Table of contents

Rolling out a mobility budget is easy, provided you know exactly what the mobility budget will look like. And that's really broader than determining which benefits you want to offer in which pillar.

But before you get to work designing your mobility (budget) policy, you need to ask yourself whether introducing a mobility budget is something for your company. There are two steps for that.

Which two steps are those? You can read about them in this blog post.

Why is the mobility budget so interesting?

Ask businesses what their biggest challenges are, and you will always get the same two answers:

  • Finding (and keeping) the right people;
  • control the labor cost.

Often the two go hand in hand.

This is precisely why the mobility budget is a golden opportunity.

You distinguish yourself from the competition with it because it is still new. At the same time, you optimize payroll costs with it.

Suppose you are considering introducing a mobility budget. But you don't want to present this to your employees yet so as not to create false expectations. And the legal and budgetary feasibility is also still a question mark.

So how do you know the mobility budget is for you?

Well, in two steps you can discover this.

Step 1: opportunity analysis

Essentially, you want to be able to gauge in advance whether employees will sign up for the mobility budget or not. If none of your employees are hot for it, it makes no sense to invest in introducing the mobility budget.

Can't you just ask your employees then?

Based on our experience, we advise against it for two reasons:

  • Suppose 55% say they are not interested in the mobility budget and 45% are. Do you do it then? Possibly not, but then you have created expectations in 45% of your employees who are potentially demotivated as a result.

In short: as an employer, it is best to make your own assessment of whether or not it is opportune to introduce a mobility budget.

For larger populations, you have to apply data analysis to this because you have to take into account a lot of variables, such as: place of residence, usual place of employment, family situation, available mobility solutions near the place of residence, distance of travel, duration of travel, ...

For smaller populations, a more limited data analysis in which visual reporting allows the necessary conclusions to be drawn.

You can make your own initial assessment by answering three questions:

  • Do your employees live within 10 km (as the crow flies) of work?
  • Do your employees work more than half from home?
  • Do your employees need to travel to customers frequently, and if so, can they travel to customers without their own cars?

If the answer for the majority of your employees is yes at least once, then it might be a good idea to introduce a mobility budget.

Now, even for smaller populations, you often can't do that exercise by sight. Hence, you need a more informed opportunity analysis.

Step 2: feasibility analysis

Just because it is expedient to introduce a mobility budget does not mean it is feasible.

Introducing a mobility budget without considering the context and history of the company is a bad idea. We need to take this into account.

If, as an employer, you provide company cars that have been the subject of a gross salarysacrifice, then in principle it is not possible to introduce a mobility budget in a cost-neutral way. Exceptionally, it is possible, but we have to examine this beforehand.

The legal and (para)fiscal feasibility is thus largely about whether the introduction of a mobility budget can be done in a cost-neutral way.

To keep your payroll costs under control, it is important to know if and to what extent the introduction of a mobility budget increases payroll costs.

If you have been providing company cars to one or more employees on top of their gross pay package for more than 36 months and you want to make the mobility budget available only to employees who already have a company car, then this is likely to pass the feasibility test.

In short, if it then also proves expedient to introduce a mobility budget, you should not hesitate. The mobility budget is for your company.

Then you can get to work on how you want to make the mobility budget concrete.

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