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Company car is key to luring talent for SMEs

A survey by Avis Car Rental UK found that 39% of potential job seekers reported that the type of company car they are offered significantly influences their decision to join a small business. The independent study also revealed the other key factors influencing a decision to join a small business, which include an opportunity to travel (14%), good career progression (37%), pension (29%) and extra earning potential (32%).

Louisa Bell, commercial director at Avis UK, commented: ‘For SMEs recruitment can be the biggest challenge and they often lose out to more established organisations that are able to trade on their history and their brand. However, as our research shows, a range of additional benefits can make all the difference in swaying the perfect candidate’s decision in joining your business.’

The research also revealed that just 6% of SMEs currently outsource their business travel needs to a travel management company, fleet management service, or similar. With the number set to decline to 5% in three years, the figures suggest that up to 95% of small businesses are relying on internal resourcing to manage the business travel needs of their colleagues, instead of focusing on driving business growth.

Bell added: 'Many small businesses miscalculate or simply don’t know just how much money is spent on their business travel. Even with a relatively small work force, managing employees’ travel can require a significant amount of time and effort. This is often managed by the business owner themselves which means that instead of focusing on driving business growth, the senior management is preoccupied with controlling this cost. It is often far more economical for SMEs to focus on core services and outsource other areas, such as travel management, to specialists. Travel management companies and suppliers can help with a lot of this providing reporting and control mechanisms.' 

 

Breakdown of key findings:

Outsourcing: Which of the following functions do you currently outsource; how is this likely to change in three years?

Business Function

2014

2017

Travel

6%

5%

Technology

21%

21%

HR

8%

10%

Marketing

8%

9%

Accounting

26%

24%

 

Value of business travel: How important is business travel to the success of your business?

 

Total UK SMEs

Small-sized bus

Medium-sized bus

Very important

29%

25%

42%

Fairly important

27%

24%

41%

Not very important

16%

17%

11%

Not at all important

27%

33%

5%

 

Planes, trains and automobiles: Which mode of transport do you use to travel farthest for business and/or commuting during an average working week?

Mode of Transport

Split

Car

50%

Train

15%

Aeroplan

13%

Bicycle

2%

Inner city train (tube)

4%

Walking

2%

Work from home

9%

 

The reason: Which of the following is the most important factor to you when choosing this mode of transport?

Reason

Split

Convenience

36%

Flexibility

16%

Travel Time

16%

Cost

13%

Comfort

6%

 

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Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.