Eine Person läuft an einer einfahrenden U-Bahn vorbei – Sinnbild für flexible Mobilität. Fleethouse bietet smarte Fuhrparkmanagement-Software und unterstützt Unternehmen bei der Einführung eines individuellen Mobilitätsbudgets für mehr Mitarbeiterzufriedenheit und nachhaltige Mobilitätslösungen.

Mobility budget: benefits for employees and companies

For a long time, having your own company car was seen as a status symbol and an object of prestige. However, the needs of employees are changing and the desire for flexible, individual and more sustainable mobility solutions is growing. Instead of the classic company car, the focus is shifting to the mobility budget. According to a survey by mobility provider Free Now and market research institute Kantar, around one in two Germans open_in_new who are entitled to a company car would give it up if their employer offered alternatives such as a mobility budget. In this article, we take a closer look at the concept and present the benefits for employees and employers.

What is a mobility budget and how does it work?

A mobility budget is a modern and sustainable concept in the area of company mobility. Employees receive a specific budget from their employer that they can use for various mobility options. They have the flexibility to choose the means of transport that suits their current needs and covers their daily commute and business trips. The amount can be set monthly or annually, depending on the company and individual agreements. The software company SAP, for example, is one of the employers that has already successfully introduced a mobility budget open_in_new . Typically, employees with a mobility budget can use the following means of transportation:
  • Local and long-distance public transport
  • Car Sharing
  • Bike or scooter sharing
  • Rental car
  • Cab and Uber

The advantages of a mobility budget in the vehicle fleet

The idea behind the mobility budget is to give employees more flexibility and promote the use of environmentally friendly means of transportation. The benefits are not just for employees, companies also benefit from an attractive mobility offer.

Advantages for employees

  • Flexibility: means of transportation can be flexibly combined and selected according to personal needs
  • Saving time: Instead of getting stuck in a traffic jam with a company car, the means of transportation can be used to get to your destination as efficiently and quickly as possible
  • Health: Health-promoting mobility solutions such as cycling can have a positive impact on health and well-being
  • Environmental protection: climate protection plays an important role for many employees and a mobility budget is used to promote sustainable means of transportation such as e-scooters, trains and buses
  • Equal rights: While company cars are often reserved for certain groups of people or management levels in the company, all employees can be considered equally with a mobility budget

Advantages for companies

  • Employer attractiveness: an innovative mobility concept strengthens the employer brand and increases employee satisfaction
  • Cost reduction: downsizing the vehicle fleet leads to cost savings in procurement, maintenance and administration
  • Cost control: a mobility budget offers a transparent and predictable cost calculation
  • Environmental protection: promoting environmentally friendly means of transportation contributes to environmental protection and strengthens the company’s image as a responsible employer open_in_new
Employees use the mobility budget for bicycles and e-scooters
Whether e-scooter, bicycle or car sharing. With a mobility budget, employees can cover their mobility requirements according to their needs.

Mobility budget instead of company car?

Despite all the advantages, it is clear that the mobility budget does not work equally well in all regions. While numerous mobility alternatives are available in large cities and conurbations, the situation is very different in rural areas. There, sharing models are usually not available nationwide or not at all, and the public transport network is not always sufficiently developed. And even in large cities, many fleets cannot completely dispense with the traditional company car model, as field staff in particular are dependent on a company car. Rather, the mobility budget is a supplement to the company car and part of the overall company mobility, which is tailored to the requirements and needs of the employees. The aim is to offer employees attractive alternatives and guarantee them as much flexibility as possible.

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Defining the use of the mobility budget with a mobility policy

Similar to a company car policy, which regulates the use of company cars, companies use a mobility policy to define all the rules and framework conditions associated with the use of the mobility budget by employees. A mobility policy regulates in detail how the mobility budget can be used, which means of transport or mobility services are included and which conditions apply to its use.

A well-thought-out mobility policy helps to fully exploit the benefits of the mobility budget while at the same time making company mobility efficient and sustainable. In addition, clear rules prevent possible misunderstandings and conflicts. Such a guideline should therefore include the following points:

  1. Budget framework: The allocated amount for each employee mobility budget is defined in the policy. This can vary depending on the position or hierarchical level within the company.
  2. Accepted means of transport: As part of a mobility policy, define which means of transport or mobility services may be used within the mobility budget. If necessary, employees can also decide for themselves how they want to use the budget.
  3. Settlement of costs: Define how the mobility budget will be settled. As an employer, you can, for example, conclude a contract with a transport company and give the tickets to employees as a benefit in kind. In the meantime, various providers have also established themselves that offer mobility cards in the form of prepaid cards. Alternatively, employees can submit all receipts for the purchase of train tickets or car-sharing trips. It is also possible to provide employees with tax-free vouchers from mobility providers.
  4. Dealing with unused budget: The budget is not always fully utilized. The mobility policy should therefore specify how residual amounts are to be dealt with. Do they expire or can they be carried over to the next month? Or should unused budget be paid out with the salary?
  5. Scope of validity: Determine whether the mobility budget may only be used for business trips, for commuting to work or also for private purposes.
  6. Sanctions: The policy should also contain clear rules and possible sanctions for employees who violate the established guidelines. 

The most important facts about the mobility budget at a glance

With a mobility budget, companies provide their employees with a fixed amount of money that they can use for various means of transportation.

As an innovative and sustainable mobility solution, a mobility budget has a positive effect on the company image, employee satisfaction and environmental protection.

All rules and framework conditions for the use of the mobility budget should be defined in a mobility policy.

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