My friend, Anthony, runs a small sales and service company which has one miserable mobile employee who is in-charged of sales and delivery. I have visited him at his office before and I could see that business is quite good. The mobile employee is out of office most of the day but Anthony told me that he wasn’t sure if the guy was working or running personal errands. LOL
Mileage reimbursement program in place. I felt that the program could help both parties not to take advantage of each other and in fact, it creates a winning situation for both.
On one hand, Anthony would see lower liability and reduced risk without having to provide the mobile employee with a company vehicle. On the other hand, the mobile employee will be duly compensated for his mileage used at the end of the month. Best of all, this auto allowance is tax free which means that he actually has more money to take home!
Anthony may feel like he is not getting as much benefits from this arrangement than his employee but I guess like most employers, he’s just stingy.
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