German firms lead the way in providing bicycles for employees - Leading German companies leading the way in workforce dynamics
German Companies Take the Lead in Employee Bike Leasing and Sharing
German businesses are outpacing international counterparts in the realm of bike leasing and bike-sharing schemes for employees, a trend backed by a recent fleet management barometer from Arval. The survey, which polled 8,061 fleet decision-makers across 28 European and North and South American countries, reveals that no other nation comes close to Germany's level of program adaptation.
In fact, 14 percent of fleet managers in Germany confirmed that their companies provide bike leasing or bike-sharing services for employees, a figure that easily separates Germany from second-place Switzerland, which reported an 8 percent rate.
The tax incentives offered in Germany foster this growth. As Katharina Schmidt of Arval Germany explains, "In Germany, there are tax benefits that make bike leasing an attractive option for companies." Compared to bike-friendly nations like the Netherlands, which boasts rates of 4 and 3 percent, the tax advantages in Germany are considerably more appealing.
This advantage, paired with comprehensive employer programs and cultural acceptance of cycling, has led to wide adoption of bike leasing among German employees. In 2020, only 9 percent of companies offered such programs, but Schmidt anticipates that number to rise continuously.
Alexander Koch, Managing Director of NORMA Group, an active proponent of bike leasing, echoes Schmidt's sentiments: "Bike leasing is a crucial part of our sustainability strategy, and its popularity among employees continues to grow."
The appeal of bike leasing stems from a variety of factors. Many companies cover insurance costs for leased bikes and integrate these programs into corporate sustainability strategies, often involving third-party leasing providers to streamline administration.
The motivation for adopting bike leasing is multifaceted, driven by concerns for sustainability, health benefits, and celebration of an emission-free lifestyle, all of which align with corporate social responsibility goals and the values of the majority of employees.
A robust infrastructure, including on-site bike storage and shower facilities, also contributes to the widespread adoption of cycling among employees and further encourages uptake of bike leasing schemes in Germany.
While countries like the Netherlands and Switzerland have their own company bike programs, the unique combination of tax incentives, employer involvement, and supportive infrastructure in Germany makes its schemes more appealing to both businesses and their employees than in other nations.
The significance of Germany's lead in employee bike leasing and sharing can be attributed to a confluence of factors, including progressive legislation, attractive tax benefits, strong employer programs, cultural embrace of cycling as a health and sustainability imperative, and widespread infrastructure support that encourages cycling on both professional and personal levels.
- In line with the tax benefits and progressive legislation in Germany, more companies are expected to adopt bike leasing and sharing schemes as part of their sustainability strategies, following the example set by companies like NORMA Group.
- The popularity of bike leasing in Germany is not just driven by tax incentives but also by comprehensive employer programs, cultural acceptance of cycling, and a robust infrastructure that supports both professional and personal cycling, setting Germany apart from other nations.
