[infographic] Reimbursement – 5 Damaging Effects to Your Business

1. 30% INFLATION ON REPORTED MILES DRIVEN

Companies who switch from reimbursement to corporate fleet programs reportedly see mileage drop 30% because employees no longer have an incentive to round up their numbers.

2. REIMBURSEMENT CAN DECREASE PRODUCTIVITY

Chances are, many of your employees will avoid routine maintenance to save a few extra dollars of their reimbursement check. This can lead to vehicle break downs, down time, rental fees, etc. This can lead to needing emergency repairs rather than simply avoiding problems through regular preventative maintenance.

3. UNABLE TO ENSURE AN EFFICIENT VEHICLE

Service companies often benefit from customizing their trucks to help employees operate safely and more efficiently. However, with a reimbursement program, your company will have no ability to customize the vehicles driven.

4. REIMBURSEMENT INCREASES TIME & EFFORT TRACKING COMPLIANCE

With little to no control over the vehicles your employees drive, you’ll have to spend extra time and effort checking on their current DMV driving records, annual vehicle registrations, making sure their insurance policies and coverage are up to date, etc.

5. INCONSISTENT BRAND IMAGE

When your company finances a fleet, you can control the quality of advertising displayed on each vehicle in your fleet. This includes signage, graphics and full advertising wraps. With reimbursement, employees are unlikely to place ads on their personal vehicle.

SEE 5 MORE REIMBURSEMENT DANGERS

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