Mobility budget & company mobility management explained

Key points

  • Key take away. The operational mobility management (in short: BMM) describes an instrument to consider the company's own mobility holistically and to optimize it with regard to sustainability and costs.
  • Aspects. The operational mobility management includes, among other things, the vehicle park or fleet management, business trips, external delivery traffic and the commutes of the employees: inside.
  • Mobility budget instead of a company car. The trend is towards the mobility budget as a central element of corporate mobility management thanks to its maximum flexibility and cost efficiency. Last but not least, the majority of young employees would like more flexibility, freedom and sustainability with regard to individual mobility.
  • Options for action. Corporate mobility management does not stop at the mobility budget. Your company can also do even more to optimize your company's mobility and make it more sustainable and cost-efficient.

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The modern working world requires holistic thinking with regard to mobility

Traditionally, companies only dealt with the issue of operational mobility as part of fleet management, i.e. with the procurement and administration of company vehicles.

Companies in big cities may offer their employees a job ticket for public transport. However, both forms of operational mobility were always considered in isolation.

However, with new mobility offers, increasing traffic in cities and the changing needs of commuters, a holistic view of the topic of corporate mobility is becoming increasingly important, if not indispensable.

In addition, there are aspects such as climate protection, cheaper mobility and flexibility, which are becoming increasingly important for employees, especially when choosing an employer.

This means that if you want to map the entire mobility of your employees, you cannot avoid operational mobility management.

In the following we explain what company mobility management is, what it can look like and how the mobility budget can be integrated into it if it cannot even replace company mobility management as a flexible and cost-efficient alternative.

What is corporate mobility management?

In the future, with a view to more climate protection and sustainability, it will be important to reduce or optimize the company's own traffic as much as possible.

Operational mobility management - BMM for short - can help companies with this. It's a tool that helps companies analyze the traffic they generate and then identify opportunities for optimization. In this way, corporate mobility management can reduce the carbon footprint of any company.

The operational mobility management deals with, among other things, the vehicle park or fleet management, business trips, external delivery traffic and the commutes of the employees: inside.

The aim of operational mobility management is to improve the accessibility of the company location with environmentally friendly means of transport.

But it also means: Creating attractive offers for your employees. With the establishment of home or flex offices, a wide range of mobility options is becoming increasingly important for many employees.

Depending on the weather, time of day, traffic situation, distance or personal condition, your employees want to decide how to get from A to B and not commit to their own car or a company car. With one or two office days a week, a public transport subscription is not worthwhile for some people. Flexible and multimodal offers are in demand.

It is important for your company to lay the foundation for operational mobility management with a holistic sustainability strategy.

This strategy helps to ensure that a wide range of measures interlock and that your company's sustainability profile is sharpened, which has a positive effect on communication with your employees and on communication with your company's customers and investors.

Because young professionals, business partners and potential investors alike know: Your company invests in systematically and continuously identifying potential to be more climate-friendly and sustainable. This is your company's path to the future.

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The mobility budget as an integral part of operational mobility management

The mobility budget is the ideal solution for your company's operational mobility management. We explain the advantages of a mobility budget for companies:

  1. Maximum flexibility. Public transport, company bikes, car sharing, e-scooters, taxis - a comprehensive mobility offer is guaranteed and allows your employees to use their budget flexibly, depending on the weather, traffic situation or personal preference.
  2. Individually. Your employees want freedom in their mobility and they don't want to commit to a company car. With a mobility budget, employees can tailor their choice of transport according to their individual needs and preferences.
  3. Climate friendly. A mobility budget promotes the use of climate-friendly means of transport and thus reduces car use and the associated CO2 emissions.
  4. Space saving. Fewer private cars and company cars also mean that fewer streets and parking spaces on company premises and in the neighborhood are used by your company. A mobility budget saves space that can be given back to the general public.
  5. Cost efficient. Scarce financial resources are used more efficiently with a mobility budget by reducing the costs of purchasing and maintaining private and company vehicles.

    In addition, public transport and company bike offers are tax-privileged. This makes them financially attractive for both companies and employees.

With a mobility budget, you as an employer offer your employees the opportunity to expand the classic mobility offer of company cars and job tickets and to use sustainable and multimodal offers.

Young talents are increasingly turning to flexible, climate-friendly solutions for their professional and private mobility. Not least because of flexible home office regulations.

In turn, it offers you as an employer the opportunity to reduce your fleet, save costs, achieve a better CO2 balance and increase the attractiveness of your company for specialists. In this sense, a mobility budget is the ideal solution for your operational mobility management.

The NAVIT mobility solutions combine aspects of an integrated operational mobility management in a mobility platform and move your teams sustainably and efficiently.

  • Flexible and individual use of mobility offers with the mobility budget card.
  • Promotion of bus and train, e.g. with the job ticket or the reimbursement of public transport tickets.
  • Promoting cycling, for example by leasing a bike or by accessing bike-sharing services with the NAVIT card.
  • Increasing efficiency in the fleet, eg via car sharing services with the NAVIT card
  • Introduction of e-mobility, e.g. via e-car sharing or e-scooters

These examples show you how you can use the mobility solutions from NAVIT to make your company's mobility more sustainable. However, this can only be the beginning of establishing a holistic and integrative operational mobility management in your company.

Here are components of corporate mobility management that you can also initiate in your company:

  • Improving the connection to public transport or cooperation with local transport companies
  • Expansion of the charging infrastructure for e-mobility at the company location
  • Internal organisation, eg by appointing a mobility officer
  • Optimization of car traffic, e.g. by forming carpools
  • Promoting local mobility, e.g. by upgrading the routes on the company premises and in the vicinity, and by reducing parking spaces
  • Bicycle promotion, e.g. by setting up secure parking spaces, changing rooms and showers
  • Increase in gamification, e.g. through non-cash prizes for the employees who come to work in the most climate-friendly way in the long term

Every company is different. This means that company mobility management is individually tailored to the needs and requirements of the company and its employees. Together, the individual measures form a strategy for the company's own mobility. A strategy that focuses on sustainability and flexibility and focuses on the employees.

Information and content disclaimer

NAVIT hereby states that the information provided about benefits on our website is only for informational purposes only and does not represent any tax or legal advice.

The content is not intended to replace any individual, binding tax and legal advice that addresses your specific tax  or legal situation. We, therefore, declare that information provided is without guarantee of correctness and completeness.

We continue to provide updated information and research insights.

We as a provider of this information cannot assume any liability for the accuracy, completeness, and timeliness of the information provided. In particular, the information is of a general nature and does not constitute tax or legal advice in individual cases.

For questions about taxes and legal topics, please consult a certified tax advisor or lawyer.

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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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