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New Cars Can Be a Good Strategy to Retain Talented Workers

June 11, 2013
New Cars Can Be a Good Strategy to Retain Talented Workers

Mercer Human Resource Consulting undertook a study of 120 companies based in Mexico, which offers interesting results for the automotive world. 86% of the companies in Mexico provide their executives with the use of an automobile as an incentive in order to help retain such talent. Gerardo Garcia Rojas, director of Information and Talent at Mercer stated, “Since 2010, the trend of these companies has been to grant the use of an automobile because this benefit represents an important differentiator when it comes time for a worker to decide whether or not to change jobs.” Even though such benefit is not considered income, it is an expense that is saved by employees. Of the 86% of companies interviewed for the study that do provide this benefit, 52% of the employers surveyed grant an automobile from the company’s fleet. Garcia Rojas added that the poll showed that expenses related to the use of these automobiles are absorbed by the employer, including title registration fees, license plate fees, maintenance, gasoline and insurance. Other information from the study showed that the average time for replacement of an automobile is 3.4 years, with an option to purchase, and that 94% of the companies provide this option. Sixty-seven percent of responding companies stated that the discount in price is based on market value, while 39% said such is based on the depreciated value of the vehicle. The study included well-known companies in the consumer goods, high technology, durable goods, retail sales, services and self-service sectors, among others. Finally, the study showed Mexico City and Monterrey with the highest use of company vehicles, which is obvious based on the size of these major cities and the high concentration of motor vehicles in transit there.

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