Bosses admit to untackled expenses

While workforces up and down the country are facing deep budget cuts and job losses, a survey by Lloyds TSB Autolease reveals that one in three bosses have yet to cut back on their business expenses and benefits.

37% of company directors polled by Lloyds TSB Autolease - one of the UK's leading fleet management firms - admit to taking no action to reduce their personal business costs and benefits, despite economic and social pressures to limit their expenses.

Claudia Rose, Corporate Sales Director at Lloyds TSB Autolease, says: In a climate of heavily scrutinised expenses, employee expenses and benefits have become a major talking point with directors, employees and businesses now needing to reduce their costs.

But if one thing can be taken from the survey, it's that there are potentially enormous business savings to be made on personal expenses and benefits such as business travel and company cars. Now is the opportunity to act.

Indeed, just 1 in 10 bosses have taken a cheaper company car in an effort to reduce their business expenditure and set an example to staff further down the ranks.

Claudia continues: Pay and rewards are under the spotlight and while many directors are reluctant to give up their favourite status symbol, company cars are one of the single largest and easily addressed business costs.

For example, boardroom favourites like BMW and Audi have taken giant leaps forward on running costs, with some of the most fuel and tax efficient vehicles around. The message is - directors don't have to make the sacrifices they think they do. It's just about making sensible and responsible choices, which reflect well on you and your business.

Despite the opportunity to do more in the boardroom, the Autolease survey reveals that almost a third of directors have downgraded their business travel (16%) and accommodation (16%) in a step to beat the crunch.

Meanwhile, almost a quarter (23%) have taken a pay cut or freeze with just 8% declining a bonus as part of their remuneration package.

Claudia says: Clearly some concessions are being made to generate savings, but it could be argued that taking a pay freeze or turning down a bonus is merely a one off measure that won't bring down costs over the longer term. They can even be repaid at a later date when the social climate changes.

Tackling other employee benefits, such as the cost of running company vehicles, will invariably do more to help businesses large and small. Fuel is one of the biggest and fastest rising company costs, so it makes sense to think hard about implementing a low C02, fuel efficient car policy across the board for all employees. The current economic climate provides an opportunity to realign employee benefits, in particular company car policies to reduce costs.

For more information about costs savings as part of an efficient vehicle fleet, download the free Cost Best Practice Guide from: www.ltsba.co.uk/cost.