Is your company car policy still fit for hybrid work?

Most organisations designed their company car policies around a predictable working model. Employees commuted to the same workplace from Monday to Friday, and job title and seniority mainly determined eligibility.

However, that model no longer mirrors how many employees work. Hybrid schedules and changing travel options have made employee mobility much less uniform. Yet, the rules guiding company car policies often stay exactly as they are.

That doesn't mean the company car is no longer valuable. For many professionals, the company car remains a practical employee benefit. The question is whether the policy behind it still grants that benefit fairly and in line with how employees commute.

With hybrid work becoming a permanent part of working life, companies must reassess their current company car policy. Does it still support broader business, people, and sustainability objectives?

Hybrid work has made employee mobility less predictable #

Hybrid work has not removed commuting, but it has changed when, where and how employees travel.

Some employees travel to the office twice a week. Others work from home, but do commute for regular client visits or move between office locations. Even employees with similar roles and travel distance can differ.

For instance, Dutch employees completed almost 20% of all working hours from home in 2024. However, fewer days in the office doesn't automatically mean fewer kilometres travelled. Someone may commute less often but still frequently drive to clients or other locations. Look at these examples:

1. Louise works from home several days per week but still needs a car for frequent customer visits.
2. Jacob travels to the office more regularly, but lives close, so he takes the bike or uses public transport.

As such, considering only job title and office presence doesn't provide a complete picture of someone's mobility requirements. Therefore, a modern hybrid work mobility policy should provide a framework that reflects the different ways that teams work and travel.

Five signs your company car policy may be outdated #

Your mobility policy doesn't necessarily need a full makeover because it includes company cars. Rather, it needs an update when its rules don't align with workplace reality. Below are five signs that you may need a mobility policy redesign.

1. Eligibility is based mainly on hierarchy #

If company car eligibility mainly follows seniority or role, it may not match real mobility needs. Some employees travel frequently for their role, but they may not qualify for a car. At the same time, others receive a car despite almost never needing to drive.

2. Commuting assumptions no longer reflect reality #

Many company car policies still assume full-time office presence from Monday to Friday. However, hybrid work setups and client visits make that assumption questionable. As a result, mileage and cost expectations may differ significantly depending on how employees commute.

3. The same policy applies to different mobility needs #

Professionals in similar roles don't necessarily travel the same way. Consider how one lives close to the office and bikes to work, while someone else depends on a car because of their remote location or frequent client visits. As such, a standard employee mobility package can be practical to manage, but not reflect individuals' needs and roles.

4. Actual usage and mobility costs are rarely reviewed #

Lease costs, charging, fuel, parking and reimbursements can vary over time. Without a total view of these costs and vehicle usage, companies may continue to spend money on mobility packages that no longer offer the best value.

5. Exceptions are becoming the rule #

Individual exceptions can occasionally be necessary. But if HR and fleet teams continuously need to make adjustments for individual situations, then it shows that the policy no longer fits reality.

If you recognise one or more of these signs, it's a good time to reconsider whether eligibility rules still allocate mobility benefits fairly and consistently.

Why traditional eligibility rules are becoming harder to defend #

Traditional eligibility rules provide companies with a clear framework. However, they can also create a sense of unfairness, frustrations, unnecessary costs, and more administrative work.

Think about organisations that potentially continue to pay for company cars that employees hardly ever use, and meanwhile reimburse travel for colleagues who require more mobility. Scenarios like these increase the number of employee questions and individual exceptions. On top of this come policy adjustments that HR and fleet teams must manage.

Better insight into mobility usage and employee travel is also becoming more important as sustainability and reporting requirements grow. For instance, in the Netherlands, organisations with 100 or more employees must now report on business and commuting travel.

Therefore, an effective employee mobility strategy must contain clear eligibility rules that balance business needs, costs, and sustainability objectives.

What should a hybrid work mobility policy consider? #

A modern hybrid work mobility policy must provide employees with mobility options that better reflect how they travel. That may include a company car, a mobility budget, bike leasing, public transport or a combination.

Most importantly, the policy should provide clear rules without forcing anyone into the same mobility package. To achieve this, companies must consider several criteria.

Role requirements #

Start by looking at the travel an employee must complete to perform their job. Does someone frequently visit clients, suppliers, or different company locations?

Commuting situation #

How far does the employee live from work, and how often are they expected in the office? These factors help companies decide which mobility options are realistic. For instance, public transport or cycling may work well for some, but not for others.

Total mobility cost (TCO) #

The TCO calculation should cover more than the lease price. Fuel or charging, insurance, maintenance, and travel reimbursements all add to the total cost of an employee's mobility.

Our previous article explains how to calculate the total cost of ownership (TCO) of the mobility budget in Belgium.

Company objectives #

A flexible mobility policy, including eligibility decisions, should align with the company's financial and sustainability objectives. This gives HR, finance and fleet teams a shared foundation for assessing different mobility options.

Following these criteria, the goal is not for companies to evaluate every employee individually. Instead, they can group employees into several mobility profiles with clear criteria and suitable benefits. The result is a consistent framework that allows the policy to adjust to different ways of working and commuting.

How technology and AI support mobility policy redesign #

The first step of a mobility policy redesign is understanding how employees travel and what the organisation spends. Data from HR, fuel cards, charging, public transport and expenses can contribute to creating this overview.

By evaluating this data, companies can:

1. Compare current allowances with actual mobility usage.
2. Calculate the cost of different mobility profiles.
3. Model the financial impact of changing hybrid work benefits.
4. Apply eligibility rules fairly and consistently.
5. Track whether the redesigned policy delivers the expected results.

A central mobility platform brings all relevant data together, which allows HR, finance, and fleet teams to work from the same view. The result: the mobility policy redesign becomes an ongoing process based on actual usage and data instead of assumptions.

AI can then analyse large mobility datasets and compare different policy scenarios. For example, it can help companies understand how revised eligibility criteria could impact fleet size and costs.

As discussed in our previous article, AI can also help teams challenge existing policy documents, uncover outdated assumptions, and benchmark changes before they are implemented.

Despite its endless functionalities, AI should inform eligibility decisions, not make them. Companies still need transparent rules that employees can understand and trust.

Is your company car policy ready for hybrid work? #

Hybrid work has not reduced the importance of mobility, but changed what the future of company cars looks like. Instead of basing policies on hierarchy or outdated assumptions, organisations must make sure their company car policies reflect how professionals work.

Companies that continue to base their company car policy on assumptions from five years ago will fall behind. They risk higher costs, unfair eligibility decisions, and lower employee satisfaction.

Those that regularly review and update their mobility policy are in a much better position. This puts them in a much better position to support employees, control costs, and accommodate business and sustainability objectives.

Muto brings all mobility data, policies and employee choices together in one platform. With a complete view of mobility usage and costs, HR, finance and mobility teams can rework their company car policy while aligning it with the way employees actually work and travel.