Employee Benefits: Retaining Talent with Smart Mobility Solutions

More and more companies are rethinking their existing concepts and processes for managing and accounting for business trips, travel expenses, and employee mobility. Many have already recognized the potential of providing their employees with access to a comprehensive mobility offering, allowing them to steer their mobility habits to reduce emissions and save costs. At the heart of this modern approach is the mobility budget. It is a flexible and democratic benefit that offers employees easy access to a diverse range of sustainable mobility options.

A Modern Employee Benefit

The mobility budget is a modern and sustainable alternative to existing company car policies or public transport subsidies like the job ticket. It allows employees to use a monthly budget flexibly and freely for their individual mobility needs. Moreover, it promotes the use of environmentally friendly means of transport through existing tax incentives.

This gives the mobility budget a strong leverage effect in terms of sustainable mobility. If only sustainable options, such as public transport, bicycles, shared mobility, or electric mobility, are promoted, the likelihood that these will be preferred increases. Thus, the mobility budget is more than just a financial subsidy leading to more satisfied and motivated employees. Companies can use it as a strategic initiative to accelerate their net-zero goals since employee mobility often constitutes a significant part of a company's carbon footprint.

The mobility budget offers easy access to these mobility options:

  • Public transport tickets: The mobility budget is most frequently used for purchasing public transport tickets. Employees can access tickets for all transport companies as well as the railway in Germany and worldwide.
  • 49-euro ticket: Since May 1, 2023, the new Germany ticket can also be used with the mobility budget.
  • Bicycle leasing: Employees can opt for an e-bike from their employer and enter into a bicycle leasing contract.
  • Micromobility services: Employees can use the mobility budget for micromobility providers available in their city, including e-scooter sharing, e-moped sharing, and bike-sharing.
  • Carsharing services: Instead of company cars, employees can flexibly use carsharing offers.
  • Ridehailing services: Employees can call a taxi or a ride-hailing service.
  • Refueling and charging: With a hybrid card, employees can pay for fuel and charging contactlessly at thousands of gas stations and charging points.

Providing employees with easy access to a variety of different mobility options is the best way to offer mobility-related benefits in today's world of flexible working models and new work. For example, the consulting firm McKinsey & Company recently recognized the importance of mobility budgets and explained their potentially transformative effects on employee mobility.

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Benefits for Companies

In addition to the obvious benefits for employees, the mobility budget also offers a variety of advantages for companies compared to previously available options.

  • Employee satisfaction: The mobility budget as a benefit increases employee satisfaction and retention by offering real choices and maximum flexibility. Companies can set up the budget so that it gives employees a sense of control, autonomy, and fairness, allowing them to use it individually according to their needs and preferences.
  • Attracting and retaining talent: Innovative and employee-oriented benefits like the mobility budget can help differentiate from the competition and attract top talent. To win and retain the best talents, companies need to create employee offerings that sustainably improve life and work-life balance.
  • Improved work-life balance: A flexible mobility budget usually leads to less stressful commutes, allowing employees to arrive at work more relaxed. Integrated offers like a company bike lease can also specifically promote employee health.
  • Applicable everywhere: With the worldwide applicability of the virtual debit card and the availability of various mobility options, companies with multiple locations can rely on a central solution without needing a mobility solution for each site. Additionally, the mobility budget can be tailored to the needs of each location.
  • Cost optimization: Companies only need to cover the portion of the budget that employees actually use. Unused budget is refunded to the company at the end of the month. Thus, introducing a mobility budget typically leads to lower expenses compared to the cost-inefficient company car.
  • Lower administrative burden: Implementing a central mobility platform simplifies billing and cost management, significantly reducing the time spent on administrative tasks.
  • Net-zero goals: Promoting low-emission mobility options through a mobility budget aligns with companies' net-zero initiatives and helps them decarbonize their operational mobility.
  • Data-driven decisions: Access to mobility-related data helps HR departments better understand employees' commuting behavior, identifying areas for improvement. This supports not only the CSRD reporting of mobility-related CO2 emissions but also demonstrates the profitability of the mobility platform.

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The NAVIT Mobility Budget - Covering All Mobility Needs from A to Z

At NAVIT, we understand the unique challenges companies face. That’s why our mobility solutions are tailored to the specific needs of our customers.

Companies like Porsche, Lufthansa Innovation Hub, mobile.de, HelloFresh, and GetYourGuide, among others, have already chosen our mobility budget and benefit from services including:

  • Analysis and optimization: Understanding the status quo of corporate mobility and identifying areas with the greatest potential for cost and CO2 savings.
  • Developing a data-driven strategy to tackle new mobility challenges.
  • Implementation: Putting strategy into action and supporting the company in introducing new mobility policies.
  • Simplifying new mobility policies by managing various types of mobility on a single platform, offering employees real flexibility.
  • Reporting: Reporting, reducing, and compensating CO2 emissions.
  • With NAVIT, companies can gain an overview of the environmental impact of each trip and create a comprehensive CO2 report.
  • Automating ESG reporting with our partners for mobility and other areas within the company.

Step into the Future of Corporate Mobility

The mobility budget is a win-win solution for modern companies and their employees. It promotes sustainability, efficiency, and employee satisfaction while helping companies save costs – crucial factors for long-term business success.

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Stefan Wendering
Stefan is a freelance author and editor at NAVIT. Previously, he worked for startups and in the mobility sphere. He is an expert in urban and sustainable mobility, employee benefits, and New Work. In addition to creating blog content, he also produces marketing materials, taglines, and website content, as well as case studies.
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