HEALTH WEALTH CAREER 2017 CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL

Transcription

1 HEALTH WEALTH CAREER 2017 CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL

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3 In today s competitive race to attract and retain highly skilled global talent, organisations require current, in-depth information on everything from local statutory benefits, to salary trends, to managing a diverse workforce. Through Mercer s own extensive global presence, we collect and analyse data and insights that help companies take the actions necessary to support their human capital strategies. You can order any of the publications below by clicking on the title links or by visiting FULL ACCESS TO ALL GLOBAL PUBLICATIONS Subscribe to our Talent All Access Portal for exclusive online access to our entire suite of publications and tools. HEALTH & BENEFITS Global Car Policies Worldwide Benefit & Global Parental Leave Severance Policies Employment Guidelines Asia Pacific WORKFORCE & CAREERS Global Compensation Planning Report Short-Term Incentives Around the World Global Pay Summary Total Employment Costs Around the World HANDBOOKS & GUIDES International Geographic Salary Differentials Workforce Turnover Around the World Compensation Handbook Global Mobility Handbook HR Management Terms HR Guide to Doing Business HR Atlas Asia Pacific

4 CAR BENEFIT POLICIES TYPE OF CAR BENEFIT POLICY N=503 15% 53% GLOBAL FREQUENCY OF CAR BENEFIT POLICY REVIEW DEPARTMENT RESPONSIBLE FOR CAR BENEFIT POLICY DESIGN 20% 16% 61% 4% N=505 LOCAL 33% LOCAL, BUT PARENT ORGANISATION CONTROLS SOME MAJOR ASPECTS OF THE POLICY FACILITIES FINANCE HUMAN RESOURCES PROCUREMENT ANNUALLY EVERY YEAR AD HOC N=503 2% 8% 85% 3% 3% 2017 MERCER LLC. CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL 5

5 GREEN POLICIES STEPS TAKEN TOWARD A GREENER CAR BENEFIT PROGRAMME N=497 IMPLEMENTED LIMIT/REDUCE THE NUMBER OF COMPANY CARS 19% 9% 73% PLAN TO IMPLEMENT WITHIN THE NEXT TWO YEARS IMPLEMENTED NO PLANS TO IMPLEMENT LIMIT VEHICLE OPTIONS TO THOSE WITH LOWER CO 2 EMISSIONS 19% 9% ACTIVELY PROMOTE TRANSPORTATION (CAR POOLS, BICYCLES) 19% 9% 73% IMPLEMENTED PLAN TO IMPLEMENT WITHIN THE NEXT TWO YEARS PLAN TO IMPLEMENT WITHIN THE NEXT TWO YEARS IMPLEMENTED ADD HYBRID/ELECTRIC VEHICLES TO COMPANY CAR FLEET 19% 9% 73% IMPLEMENTED 73% NO PLANS TO IMPLEMENT PLAN TO IMPLEMENT WITHIN THE NEXT TWO YEARS NO PLANS TO IMPLEMENT NO PLANS TO IMPLEMENT PROMOTE THE USE OF PUBLIC TRANSPORT BY OFFERING SUBSIDIES OR ALLOWANCES 19% 9% 73% PLAN TO IMPLEMENT WITHIN THE NEXT TWO YEARS NO PLANS TO IMPLEMENT 2017 MERCER LLC. CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL 6

6 CAR BENEFIT ELIGIBILITY CRITERIA USED FOR DETERMINING EMPLOYEE ELIGIBILITY BUSINESS NEED JOB LEVEL OR GRADE MARKET COMPETITIVENESS STATUS/SENIORITY N=503 FACTORS CONSIDERED IN DETERMINING BUSINESS NEED FOR CAR BENEFIT POLICY FOR EMPLOYEES THAT TRANSITION FROM A CAR BENEFIT-ELIGIBLE POSITION TO NON-ELIGIBLE POSITION 8% DISPLACEMENT 3% DISPLACEMENT 54% 24% 12% N=503 PROVIDE A TEMPORARY ALLOWANCE PROVIDE A PERMANENT ALLOWANCE 78% 77% 38% 24% 5% 97% 29% 11% 9% N=390 TERMINATE BENEFIT NECESSITY OF A CAR (E.G., SALES ROLE WITH FREQUENT ROAD TRAVEL REQUIREMENTS) MINIMUM ANNUAL BUSINESS MILEAGE PERCENTAGE OF TIME ABSENT FROM OFFICE ON COMPANY BUSINESS POLICY DOES NOT ADDRESS THIS 2017 MERCER LLC. CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL 8

7 TYPE OF CAR BENEFIT FOR EACH EMPLOYEE LEVEL 31% 9% HEAD OF ORGANISATION VEHICLE ONLY N=514 28% INTENDED USE OF COMPANY-PROVIDED VEHICLE 92% 8% HEAD OF ORGANISATION BUSINESS ONLY N=345 9% 9% 9% 33% 33% 33% 33% 31% EXECUTIVE 31% MANAGEMENT 31% PROFESSIONAL NONSALES 28% 28% 28% CAR ALLOWANCE ONLY VEHICLE OR CAR ALLOWANCE NOT ELIGIBLE FOR CAR BENEFIT 8% 8% 8% EXECUTIVE MANAGEMENT PROFESSIONAL NONSALES 92% 92% 92% PERSONAL BUSINESS AND 31% 9% PROFESSIONAL SALES 92% 28% 8% PROFESSIONAL SALES 33% 2017 MERCER LLC. CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL 9

8 METHOD OF CHARGING EMPLOYEES FOR PRIVATE USE OF VEHICLE 78% N=277 8% 13% BENEFIT-IN-KIND ONLY (I.E., EMPLOYEE PAYS TAXES ON THEIR BENEFIT BUT IS NOT REQUIRED TO MAKE A CONTRIBUTION TO THE COMPANY) MONTHLY CHARGE TO COMPANY ONLY (I.E., SALARY DEDUCTION PAYMENT TO COMPANY FOR PRIVATE USE OF THE CAR) COMBINATION OF BENEFIT-IN-KIND AND MONTHLY CHARGE VEHICLE CHANGES EMPLOYEES' ABILIITY TO CHOOSE THEIR VEHICLE THEY MAY CHOOSE BASED ON A CERTAIN TYPE OF VEHICLE (MAKE, MODEL) THEY MAY CHOOSE BASED ON A COMBINATION OF VEHICLE TYPE AND MAXIMUM COST N=344 EMPLOYEES' ABILITY TO TRADE UP/DOWN COMPANY-PROVIDED VEHICLE 15% 21% 29% 28% 7% N=340 THEY MAY TRADE UP THEY MAY TRADE UP OR DOWN THEY MAY TRADE DOWN VARIES BY EMPLOYEE LEVEL NOT ABLE TO TRADE UP OR DOWN 6% 14% 54% THEY MAY CHOOSE BASED ON A MAXIMUM COST (PURCHASE PRICE/MONTHLY LEASE) VEHICLES ARE ALLOCATED BASED ON FLEET AVAILABILITY/POLICY EMPLOYEE RECEIVES DIFFERENCE IN COST AFTER OPTING FOR A LESS EXPENSIVE VEHICLE YES N= % 12% 10% VARIES BY EMPLOYEE LEVEL NO 13% 14% 2017 MERCER LLC. CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL 10

9 VEHICLE REPLACEMENT POLICIES POLICY FOR REPLACING A COMPANY-PROVIDED VEHICLE VEHICLE IS REPLACED AFTER A CERTAIN NUMBER OF MONTHS N=340 VEHICLE IS REPLACED AFTER A CERTAIN NUMBER OF MILES OR KILOMETRES NO REPLACEMENT POLICY MILEAGE/KILOMETRE THRESHOLD FOR VEHICLE REPLACEMENT N=73 64% 22% 15% 0 60,000 MILES OR 0 100,000 KILOMETRES 90, ,000 MILES OR 150, ,000 KILOMETRES 11% 25% FREQUENCY OF VEHICLE REPLACEMENT 12 MONTHS OR LESS MONTHS MONTHS MONTHS MONTHS MORE THAN 60 MONTHS N=503 60,001 75,000 MILES OR 100, ,000 KILOMETRES 105, ,000 MILES OR 175, ,000 KILOMETRES 1% 2% 18% 58% 16% 6% 21% 21% 75,001 90,000 MILES OR 125, ,000 KILOMETRES 11% 13% MORE THAN 120,000 MILES OR 200,000 KILOMETRES 2017 MERCER LLC. CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL 11

10 VEHICLE CATEGORY HYBRID/ELECTRIC COMPACT/ECONOMY MIDSIZE/ INTERMEDIATE FULL SIZE SPORTS/CONVERTIBLE LUXURY SUV/MINIVAN/4X4 COMPANY-OWNED VEHICLES COMPANY OWNS VEHICLES FOR CAR BENEFIT PROGRAMME N=345 TYPICAL MAKE AND MODEL FOR EACH VEHICLE CATEGORY N=71 YES 77% NO 24% VEHICLE TYPES TYPES OF VEHICLES IN COMPANY-OWNED FLEET HYBRID/ELECTRIC COMPACT/ECONOMY MIDSIZE/INTERMEDIATE FULL SIZE SPORTS/CONVERTIBLE MAKE AND MODEL 2017 MERCER LLC. CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL 12 LUXURY SUV/MINIVAN/4X4 N=81 14% 37% 63% 48% 6% 25% 43%

11 PURCHASE VALUE OF COMPANY-OWNED VEHICLE (INCLUDING APPLICABLE TAXES) VEHICLE CATEGORY P25 P50 P75 MEAN N HYBRID/ELECTRIC 10,000 10,000 10,000 10, COMPACT/ECONOMY 10,000 10,000 10,000 10, MIDSIZE/ INTERMEDIATE 10,000 10,000 10,000 10, FULL SIZE 10,000 10,000 10,000 10, SPORTS/CONVERTIBLE 10,000 10,000 10,000 10, LUXURY 10,000 10,000 10,000 10, SUV/MINIVAN/4X4 10,000 10,000 10,000 10, VEHICLE CATEGORY PROVIDED TO EACH EMPLOYEE LEVEL VEHICLE CATEGORY HEAD OF ORGANISATION EXECUTIVE MANAGEMENT PROFESSIONAL NONSALES PROFESSIONAL SALES HYBRID/ELECTRIC 13% 13% 13% 13% 13% COMPACT/ECONOMY 13% 13% 13% 13% 13% MIDSIZE/ INTERMEDIATE 13% 13% 13% 13% 13% FULL SIZE 13% 13% 13% 13% 13% SPORTS/CONVERTIBLE 13% 13% 13% 13% 13% LUXURY 13% 13% 13% 13% 13% SUV/MINIVAN/4X4 13% 13% 13% 13% 13% N MERCER LLC. CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL 13

12 VEHICLE RELATED EXPENSES COMPANY COVERAGE OF FUEL COSTS N=81 COMPANY COVERAGE OF MAINTENANCE COSTS ALL MAINTENANCE COSTS 14% 37% 63% 48% SOME MAINTENANCE COSTS NONE, THE EMPLOYEE IS RESPONSIBLE N=79 ALL FUEL BUSINESS FUEL ONLY NONE, THE EMPLOYEE IS RESPONSIBLE 80% 7% 9% 4% COMPANY COVERAGE OF INSURANCE COSTS 62% 27% 7% 7% N=80 COMPANY COVERAGE OF TAX-RELATED COSTS (E.G., ROAD TAX) 77% 6% 14% 2% ALL TAX-RELATED COSTS N=80 ALL COSTS, INCLUDING THE EXCESS/DEDUCTIBLE IF A CLAIM IS REQUIRED ALL COSTS, EXCEPT THE EXCESS/DEDUCTIBLE IF A CLAIM IS REQUIRED NONE, THE EMPLOYEE IS RESPONSIBLE SOME TAX-RELATED COSTS NONE, THE EMPLOYEE IS RESPONSIBLE 2017 MERCER LLC. CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL 14

13 COMPANY-LEASED VEHICLES COMPANY LEASES VEHICLES FOR CAR BENEFIT PROGRAMME N=345 TYPICAL MAKE AND MODEL FOR EACH VEHICLE CATEGORY VEHICLE CATEGORY HYBRID/ELECTRIC COMPACT/ECONOMY MIDSIZE/ INTERMEDIATE FULL SIZE SPORTS/CONVERTIBLE LUXURY SUV/MINIVAN/4X4 N=71 YES 37% NO 63% VEHICLE TYPES TYPES OF VEHICLES IN COMPANY-LEASED FLEET HYBRID/ELECTRIC COMPACT/ECONOMY MIDSIZE/INTERMEDIATE FULL SIZE SPORTS/CONVERTIBLE MAKE AND MODEL 2017 MERCER LLC. CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL 15 LUXURY SUV/MINIVAN/4X4 N=81 14% 37% 63% 48% 6% 25% 43%

14 MONTHLY LEASE COST OF COMPANY-LEASED VEHICLE (INCLUDING APPLICABLE TAXES) VEHICLE CATEGORY P25 P50 P75 MEAN N HYBRID/ELECTRIC 10,000 10,000 10,000 10, COMPACT/ECONOMY 10,000 10,000 10,000 10, MIDSIZE/ INTERMEDIATE 10,000 10,000 10,000 10, FULL SIZE 10,000 10,000 10,000 10, SPORTS/CONVERTIBLE 10,000 10,000 10,000 10, LUXURY 10,000 10,000 10,000 10, SUV/MINIVAN/4X4 10,000 10,000 10,000 10, VEHICLE CATEGORY PROVIDED TO EACH EMPLOYEE LEVEL VEHICLE CATEGORY HEAD OF ORGANISATION EXECUTIVE MANAGEMENT PROFESSIONAL NONSALES PROFESSIONAL SALES HYBRID/ELECTRIC 13% 13% 13% 13% 13% COMPACT/ECONOMY 13% 13% 13% 13% 13% MIDSIZE/ INTERMEDIATE 13% 13% 13% 13% 13% FULL SIZE 13% 13% 13% 13% 13% SPORTS/CONVERTIBLE 13% 13% 13% 13% 13% LUXURY 13% 13% 13% 13% 13% SUV/MINIVAN/4X4 13% 13% 13% 13% 13% N MERCER LLC. CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL 16

15 VEHICLE RELATED EXPENSES COMPANY COVERAGE OF FUEL COSTS 14% 37% 63% 48% ALL FUEL BUSINESS FUEL ONLY NONE, THE EMPLOYEE IS RESPONSIBLE N=81 N=80 COMPANY COVERAGE OF INSURANCE COSTS ALL MAINTENANCE COSTS SOME MAINTENANCE COSTS NONE, THE EMPLOYEE IS RESPONSIBLE 80% N=79 N=80 7% 9% 4% COMPANY COVERAGE OF INSURANCE COSTS 62% 27% 7% 7% ALL COSTS, INCLUDING THE EXCESS/DEDUCTIBLE IF A CLAIM IS REQUIRED ALL COSTS, EXCEPT THE EXCESS/DEDUCTIBLE IF A CLAIM IS REQUIRED NONE, THE EMPLOYEE IS RESPONSIBLE COMPANY COVERAGE OF TAX-RELATED COSTS (E.G., ROAD TAX) 77% 6% 14% 2% ALL TAX-RELATED COSTS SOME TAX-RELATED COSTS NONE, THE EMPLOYEE IS RESPONSIBLE 2017 MERCER LLC. CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL 17

16 CAR ALLOWANCES COMPANY PROVIDES A CAR ALLOWANCE 55% N=495 YES EMPLOYEE MUST USE CAR ALLOWANCE TOWARD COST OF A VEHICLE N=273 YES EMPLOYEE MAY CHOOSE AN ALLOWANCE INSTEAD OF A VEHICLE N=269 55% 55% YES, ALL EMPLOYEES MAY CHOOSE 45% 45% NO NO YES, SOME EMPLOYEES MAY CHOOSE 45% 45% NO ALLOWANCE AMOUNTS FACTORS CONSIDERED WHEN DETERMING CAR ALLOWANCE AMOUNT COSTS OF PROVIDING A VEHICLE COSTS OF MAINTAINING A VEHICLE COSTS OF INSURING A VEHICLE TAX AND SOCIAL SECURITY CONTRIBUTIONS PAID BY THE EMPLOYEE N=340 64% 55% 50% 34% 39% 2017 MERCER LLC. CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL 18

17 MONTHLY ALLOWANCE AMOUNT EMPLOYEE LEVEL P25 P50 P75 MEAN N HEAD OF ORGANISATION 10,000 10,000 10,000 10, EXECUTIVE 10,000 10,000 10,000 10, MANAGEMENT 10,000 10,000 10,000 10, PROFESSIONAL NONSALES 10,000 10,000 10,000 10, PROFESSIONAL SALES 10,000 10,000 10,000 10, VEHICLE RELATED EXPENSES COMPANY COVERAGE OF FUEL COSTS FOR EMPLOYEES WITH A CAR ALLOWNACE ALL FUEL BUSINESS FUEL ONLY EMPLOYEE IS RESPONSIBLE EMPLOYEE RECEIVES MILEAGE/KILOMETRE REIMBURSEMENT N=260 6% 27% 44% 14% 10% REIMBURSEMENT FOR MILEAGE/KILOMETRE FOR EMPLOYEES WITH A CAR ALLOWANCE N=35 90% 10% REIMBURSED FOR ALL BUSINESS- RELATED MILES/KILOMETRES, INCLUDING COMMUTING TO AND FROM THE OFFICE REIMBURSED FOR BUSINESS- RELATED MILES/KILOMETRES ONLY 2017 MERCER LLC. CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL 19

18 MILEAGE/KILOMETRE REIMBURSEMENT VERSUS LOCAL STATUTORY REQUIREMENTS FOR EMPLOYEES WITH A CAR ALLOWANCE AMOUNTS PROVIDED ARE IN LINE WITH LOCALLY SPECIFIED RATES AMOUNTS PROVIDED ARE HIGHER THAN LOCALLY SPECIFIED RATES N=73 AMOUNTS PROVIDED ARE LOWER THAN LOCALLY SPECIFIED RATES THERE ARE NO LOCALLY SPECIFIED RATES REIMBURESMENT OF VEHICLE EXPENSES FOR EMPLOYEES WITH A CAR ALLOWANCE N=274 7% MAINTENANCE 80% 13% ALL SOME NONE 68% 6% 7% INSURANCE 80% 13% 7% 14% 14% TAX-RELATED COSTS 80% 13% 2017 MERCER LLC. CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL 20

19 ABOUT MERCER At Mercer, we make a difference in the lives of more than 110 million people every day by advancing their health, wealth, and careers. We re in the business of creating more secure and rewarding futures for our clients and their employees whether we re designing affordable health plans, assuring income for retirement, or aligning workers with workforce needs. Using analysis and insights as catalysts for change, we anticipate and understand the individual impact of business decisions, now and in the future. We see people s current and future needs through a lens of innovation, and our holistic view, specialized expertise, and deep analytical rigor underpin each and every idea and solution we offer. For more than 70 years, we ve turned our insights into actions, enabling people around the globe to live, work, and retire well. At Mercer, we say we Make Tomorrow, Today. Mercer LLC and its separately incorporated operating entities around the world are part of Marsh & McLennan Companies, a publicly held company (ticker symbol: MMC) listed on the New York, Chicago, and London stock exchanges MERCER LLC. CAR BENEFIT POLICIES AROUND THE WORLD GLOBAL 31

20 For further information, please contact your local Mercer office or visit our website at Copyright 2017 Mercer LLC. All rights reserved. 17-CBP-GLOBAL