IT may be safe to say that the Covid-19 pandemic has changed the way many people work forever.
With government data suggesting that close to 30 per cent of adults are still working on a hybrid basis and a further 16 per cent work exclusively from home, many organisations have had to make significant adjustments to the way they do business.
Companies operating fleets are no exception. If an employee’s place of work clause in their contract has changed to at home working, their privately owned car will automatically join the ranks of the ‘grey fleet’ when used for work related travel.
A grey fleet refers to employee-owned vehicles used for work purposes, outside of company-provided cars. With hybrid working becoming more prevalent, employees are increasingly relying on their personal vehicles to commute to and from the office, attend client meetings, or run work-related errands.
This raises important considerations for businesses who could unwittingly be putting themselves at risk of significant legal and financial consequences by failing to fulfil their duty of care.
Employers are legally mandated to ensure the health, safety, and welfare of their employees, and with an alarmingly high number of UK drivers admitting to skipping essential servicing and vehicle repairs amidst the cost-of-living crisis, it is more important than ever that processes are in place to manage driver licence checking, insurance validity and the condition of grey fleet vehicles.
The rise in grey fleet vehicles also raises environmental and cost concerns for businesses.
In contrast to most company owned vehicles, employee cars are often older and less fuel-efficient, resulting in higher carbon emissions – something many businesses are at pains to avoid.
Businesses and fleet managers therefore need to consider reviewing their driving for work policies to develop comprehensive guidelines regarding the usage and eligibility criteria of grey fleet vehicles.
Encouraging employees to opt for greener transportation options, such as electric or hybrid vehicles may prove a viable option for some, whilst employing technological solutions to accurately track and reimburse mileage expenses can provides valuable data for assessing the true cost of the grey fleet.
While the increase in grey fleet vehicles poses challenges, it also brings about certain benefits that businesses can leverage.
Relying on a privately owned vehicle does provide employees with a degree of flexibility, allowing them to customise their commute and optimise their productivity and work-life balance.
For organisations that don’t require employees to travel for work on a regular basis, a grey fleet can be a valuable resource, as operational and reimbursement costs are likely to be much lower when compared to running a company-owned fleet of vehicles.
As hybrid working continues to reshape the modern workplace, businesses can successfully navigate this new landscape by implementing proactive strategies to understand the grey fleet, leverage its advantages and simultaneously minimise any environmental impact or cost burdens.
:: Tony Magee is general manager at Donnelly Fleet
