Employee Benefits

The Mobility Budget: the winning solution for both companies and employees

Employee Benefits

Aug 7, 2023

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Across Europe, the use of mobility allowances in companies is increasing and it's no surprise. A budget that enables you to freely combine different transport methods is appealing to both companies and employees alike. It's a green and sustainable solution which allows for greater freedom and a lower environmental impact. Discover all the benefits that a mobility allowance can afford you below.

Our mobility budget in focus

Across Europe, 1 in 5 employees say they spend over 1.5 hours commuting every day, according to a survey conducted by the Institute of Labor Economics (IZA)

What's the preferred means of transport for these journeys, you may ask? Cars, of course. Half of Europeans use their private or company car for their journeys, while only 16% use public transport and 12% take bicycles. These journeys to-and-from work generate around 25% of CO2 emissions in Europe, so shifting your approach could mean big things for the environment.

To reverse this trend, the mobility allowance is the solution. A company gives its employees a monthly budget that they can spend however they wish on various types of transport: eBikes, eScooters, carsharing, taxis, eMopeds, ride-hailing and public transport.

Recently adopted in Belgium, the Mobility allowance option is also expanding rapidly in other central European countries. More and more companies are allocating their employees a budget – £100 per month+ – that they can spend freely.

Mobility budget: what are the advantages?

For employees, the benefits of a mobility allowance are undeniable: freedom, flexibility and ecological footprint reduction, to name just a few. Your employees may enjoy cycling to the office every day in good weather, but would prefer to grab a taxi or use public transport when it rains.

The mobility allowance means having the freedom to choose a means of transport that suits your employee's immediate needs, habits and environmental principles.

And for employers? The benefits are endless.

Firstly, a company that chooses a mobility budget responds its employees' specific needs and demonstrates its commitment to alternative mobility. In terms of human resources, this is appealing to new talent who want to keep up with the times. The promise of a company car no longer appeals to Millennials, who have a preference for sustainable transport. A recent Deloitte Global Automotive Consumer survey highlighted the contrast between baby boomers, who tend to focus on traditional vehicle ownership and younger generations, who are significantly more interested in mobile solutions that enable them to remain connected and productive at a lower cost. Additionally, Generation Y like to multi-task and half of them now use a transport app on their smartphone to plan their journeys.
The Mobility Allowance is also much more environmentally sustainable.

Are you interested in the Mobility Budget? Contact the FREENOW for Business teams and design one with us!

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The Mobility Budget: the winning solution for both companies and employees

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