Require Appropriate Transportation

Jessica

We are creating an outside sales/business development position that will require the employee to travel quite frequently with substantial materials. My questions are:

What is the best way to handle the requirement that the employee have reliable transportation for that purpose? Is that a requirement we would include in the job description? Is there anything I need to be careful about when disussing that during interviews?

Also, how do most folks handle related expenses? We are considering a flat mileage reimbursement but are sure if that will be the best approach. We are not in a position at this point to invest in a company car but would consider that in the future if we need to, and once the position is more established.

Any guidance is so much appreciated!

Margaret Morford

You can do a mileage reimbursement and/or pay a car allowance. (I recommend both so that the salesperson can choose their vehicle and will take care of it, unlike a company car. The car allowance helps them purchase a car and the mileage reimbursement helps pay the maintance cost of driving it on behalf of the company.)I would specify that the employee must possess a vehicle that is road worthy, of sufficient size to carry the necessary materials, be no less than ? years old and be in sufficiently good condition to represent the organization. I would also add a clause that says the organization will have final approval for any vehicle that an outside sales person plans to use in performing his/her work.

If you offer a car allowance, I would tell the potential sales person that the organization provides this allowance to insure that any vehicle that is used to call on customers reflects well on the sales person as well as the organization.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]

wiremanufacturer

If you are thinking of buying a company car be careful. We have the problem with our salesperson using the company car for personal use. (Taking it across the country for a personal vacation, hauling his dog in it, taking it to the lake, etc) While the managers don't see a problem with this the ee's do. They know that he makes alot more money than they do and they seem to be able to afford a vehicle to drive for themselves. If I was asked I'm all for the mileage/allowance idea. Then it looks more fair to the other ee's and the salesperson gets to drive something they like.

Theresa Gegen TX

One additional thing you want to do is to require the employee to turn in proof of automobile insurance to the company, and keep that proof updated.

If the employee is in an accident while driving for the employer, the employee is primarily liable, but the employer is secondarily liable. So if the employee is not sufficiently insured (which is part of the reason you are giving him or her a car allowance -- to purchase insurance), the employer can be on the hook for damages from the accident.

Good Luck!