Employee buy-in and transition to a Vehicle Reimbursement Program
For companies moving from a fleet solution to a reimbursement program, the subject of employee buy-in is generally one of considerable importance. That is because change can have an especially polarizing impact on the workplace. There are many employees who are accepting of change and can view it as a positive, or at the very least a worthy challenge. However, there are equally as many individuals who are adverse to change. Newness is frightening to many who cherish routine and the comfort of familiarity.
It is extremely important to put a sound communication strategy into play when moving away from a fleet program toward reimbursement. Some employees may feel slighted by the loss of a company car, which in turn may blind them to the many benefits that come with vehicle reimbursement programs. However with intuitive communication employee buy-in can be successfully achieved.
Here are some suggestions that can be used to encourage employee buy-in when a business switches from a fleet to a vehicle reimbursement plan:
- The switch needs to be communicated to the employees as soon as possible. This is important because people need time to process the information and make changes based on it. For example, unless the employee owns the car best-suited to his or her needs under the vehicle reimbursement plan, purchasing it is a matter that can take some time. Waiting until the last moment to communicate the switch can make employees feel that the business cares nothing about their opinions even if said individuals stand to gain.
- Likewise, the business needs to communicate the switch in an open and honest manner for employee buy-in. Tell them about benefits such as increased choice and convenient reporting, but be sure to caution them about the potential costs to them. Providing employees with comprehensive information about the switch shows the business’s care and consideration in a simple but nonetheless telling manner.
- Remember that efficient and effective communication is a continuing process. To ensure appropriate employee expectations, the business needs to continue keeping them up-to-date about the transition. Furthermore, it needs to listen to their opinions, both before and after the change.
- Emphasize the benefits of a VRP. A reimbursement program is not only something that benefits the business. It’s also a positive change for drivers as well. To encourage employee buy-in, be sure to speak to them about benefits such as more reimbursement, gas prices that reflect their territory, greater vehicle choice, more precise, accurate reimbursements, as well as non-taxable reimbursements with IRS and CRA compliance.
To learn more about vehicle reimbursement plans, please do not hesitate to contact CarData. For more common inquiries, check the Learning Center to see if the answers have been posted there.