Avoid unpleasant surprises by comparing the forecast with the real total cost of ownership (TCO) of a company car.
The total cost of ownership of a vehicle is calculated based on a number of parameters. However, there is often a lack of clear definition of the data included in the calculation. This means it can be interpreted in different ways, which is exactly what could lead to costly mistakes.
Many companies are paying more and more attention to studying, monitoring and optimising the cost of use of their fleets. This is why TCO has become a hot topic, more so than the monthly hire fee. Current practice is to compare the TCO of two vehicles in order to come up with the best choice.
This is usually based on a forecasted TCO or an estimated cost of use, This depends on a variety of factors:
- The financing costs. Financing costs are determined by the purchase price, taking into account the original equipment and extras offered by the manufacturer. Financing costs are always involved in some shape or form, regardless of whether the vehicle is paid for in cash, on credit or through hire.
- The vehicle's estimated residual value at the end of the period of use. The residual value depends on many factors, including brand image, model reputation, the manufacturer's commercial policy and the dynamics of supply and demand when the vehicle is sold.
- Costs of use include maintenance and repair costs, costs of tyres and insurance, registration fee and road tax, costs associated with mobility, such as replacement vehicle, roadside assistance, etc.
- The fuel costs: Current New European Driving Cycle (NEDC) standards make it possible for vehicle use and CO2 emissions to be calculated. This is true in theory only, as the increasing traffic congestion leads to actual consumption being greatly underestimated. By multiplying the NEDC standards by 1.2, you can get a better estimate of the actual consumption. Of course, you can also rely on your own fuel statistics.
Car tax costs are such costs as CO2 contributions and non-recoverable VAT. They are borne by the employer. Some fleet managers add to these costs additional tax costs arising from limitation of the tax deductibility of car costs according to CO2 emissions.
Unlike the forecast TCO, the real TCO can be calculated only at the end of the period during which the vehicle is used. The real TCO also takes the following elements into account:
- invoiced extra equipment;
- additional costs relating to the driver's driving behaviour (fuel consumption, tyre wear and accidents);
- authorised changes to the car policy, including any resulting unbudgeted additional costs.
The differences between the real TCO and the forecast TCO can be quite significant. They can represent between 12% and 20% of the total cost. Such differences can be limited if drivers are encouraged to behave responsibly and if the fleet is managed efficiently.
The Arval Mobility Card – the future of transport
Arval and XXImo have been joining forces for more than 6 months now to devise a flexible travel solution and to implement an integrated mobility policy.
Flexibility, simplicity, and speed: these three words encapsulate the new Arval and XXimo transport solution designed for Belgian and Dutch customers. The Arval Mobility Card and accompanying app allow you to plan and pay for use of the various transport services available to your employees, including public transport, taxis, shared vehicles and bicycles, and high-speed rail. No more receipts or expense claims – everything is done with an electronic card.
To find out more, go to:
How to prevent a stroke with the help of your smartphone
Fibricheck is a medical application that anticipates strokes using just a smartphone. This kind of innovation focused on human well-being is at the heart of BNP Paribas Fortis’s sustainability strategy.
Digitalisation is affecting even medicine. Convinced that the digital world and the traditional medical world must work together, Fibricheck has developed an application to anticipate strokes. This ethos makes human interests a core concern.
By supporting this Belgian company, BNP Paribas Fortis wants to do its bit to build a more sustainable world and help new and inspiring ideas to emerge.
A diagnosis using your smartphone
Smartphones are becoming increasingly important in our everyday lives. We use them to communicate, cook and read... so why not for medical diagnosis? With Fibricheck, the user can now check their heartbeat, to anticipate the risks of a stroke. The Fibricheck application focuses on the most common kind of heart arrhythmia: atrial fibrillation, which is responsible for 20% of strokes.
How does it work?
Above all, it is important to know that Fibricheck is available only by medical prescription. Once you have installed it, you just need to put your finger on your smartphone camera for 60 seconds, for all the required data to be recorded. The algorithms will do the rest, to provide an instant result. If any anomalies are detected, the results will be analysed by a Fibricheck doctor and made available to your doctor. Technology is used to serve human interests.
An irregular heartbeat is not always easy to detect. The advantage of Fibricheck is that it does not need to be used in a specific place (e.g. at the doctor's surgery), or during a set period. It allows multiple measurements to be taken, to provide an overview of your heartbeat.
Checks in companies
The health of your employees is crucial. Heart arrhythmias do not always have clear, visible symptoms. Consequently, detection plays a crucial role in preventing the greatest risks. This is why Fibricheck is offering to check your employees.
For more information, consult the Fibricheck website.
Challenges when recruiting internationally
Recruiting a member of staff for relocation to a foreign subsidiary requires some careful thinking. We have compiled the questions that are most frequently asked when people are faced with this human-resources quandary.
International recruitment involves recruiting people in their company's country of origin and relocating them abroad to work in a foreign subsidiary. In a globalised world, this has become common practice. However, when setting up a Belgian company abroad you will face a series of legal obstacles, as soon as your employees cross the border out of Belgium. These include employment laws, residence permits, taxation and social security. These questions will make things clearer up for you:
Should I recruit before developing my strategy?
No. Before starting the recruitment process, the first thing that a company must do is clearly define what it wants to achieve in the country where the subsidiary will be set up. It must take cultural differences between the countries into account. If the company usually recruits locally to be on the same wavelength as its target customer, when recruiting internally candidates should be adaptable and self-reliant, but above all they should be fluent in the country's language (in English, at the very least).
Can my employee work in this country?
If the free movement of workers applies within the EEA (European Economic Area) and in Switzerland, you do not need any special permit apart from your Belgian identity card. You must have a work permit as soon as you cross the border out of this area. The paperwork to apply for this can be extensive and even complicated (particularly in the United States). It is essential you have a lawyer who specialises in immigration.
Do I need a centre of operations in the country?
If you want to employ staff in a different country, you should have a local entity. Depending on the country in question, a small entity (sometimes no more than a letterbox) can be enough.
Where should social-security contributions be paid?
In the EEA and countries that have a bilateral social security treaty with Belgium, the social security system in the country of work will apply. In situations involving simultaneous employment, the social security system in the country of residence applies. As a rule, an employee cannot be subjected to different systems. Outside the EEA, you should operate on a case-by-case basis (legal and tax advice is essential in these situations).
What about salary and working conditions?
Employees can only work in an export market if they have an employment contract adapted to the salary and working conditions of the country in question. As a general rule: the mandatory legal provisions in the country of work will take precedence over the ones that appear in your Belgian employment contract.
Where should taxes be paid?
Double taxation is not a very appealing option for employees who are being relocated to work abroad. To avoid this, Belgium has signed treaties with a large number of countries specifying the country responsible for taxing the salaries that you pay. As a general rule, workers are taxed in their country of work, except in cumulative cases (the 183-day rule), where the national law of the country responsible for taxing the salary will apply.
Can I recruit internationally from Belgium?
Yes, you can. For example, in the Brussels-Capital Region, Actiris has an International department, which selects candidates with an interest in working abroad. This body is a member of EURES, a network of more than 1,000 employment counsellors (EEA and Switzerland). If your employees do not want to be relocated abroad, its counsellors can also place your job offers on the EURES portal.
Should I go it alone?
Certainly not. The steps that you need to take before relocating one of your workers abroad or recruiting internationally are too complex for you to tackle without any advice; only a specialist firm will be able to help you take these different steps (residence permits, work permits, social-security payments, taxation).
Could your intuition help you make better decisions?
All of us have heard that little voice in our ear quietly persuading us of a new idea or a different way to tackle a challenge at work. But acting on that voice is another thing altogether. And yet...
Marcel Schwantes, an expert in workplace culture based on "servant leadership*", is well placed to recognise his intuition speaking. This small voice inside us has a tendency to bring out, from the deepest recesses of our beings, feelings that can be buried under rational layers of logical thinking.
People who are emotionally intelligent are more readily able to listen to this internal compass in order to keep themselves on the right track. But not everybody has this capacity.
How can we recognise the voice of our own intuition?
Here is some practical advice:
- If the voice signals a danger, it is undoubtedly your intuition speaking.
- Intuition speaks to you in a way you cannot ignore.
- First of all, we tell ourselves the voice is wrong.
- It gives us a message that is not particularly comfortable.
- We do not really want to act on its advice, or we tend to put off doing so.
- It seems counterintuitive!
- We allow ourselves to put it out of our minds...
Intuition and integrity – a perfect partnership
The reason why many of us still disregard this voice is that it can sometimes be unsettling. It pricks our consciousness and challenges our convictions, habits and belief systems. Yet it can hide precious inner resources just waiting to be revealed.
But to be able to utilise them, we must demonstrate integrity. When activated by the necessary bravery, this partnership between integrity and intuition can become a superpower that allows us to handle tricky workplace situations – or even run a company!
*Editor's note: Liberated leadership, as opposed to authoritarian leadership.