Concerns over mileage reimbursement are becoming a significant barrier to electric vehicle adoption in the workplace, with 96% of fleet managers reporting complaints from employees about reimbursement, research by The Electric Car Scheme finds.

Nearly half (47%) of employees say they have either declined or avoided joining a company EV scheme because they are concerned they will not be properly reimbursed for charging and other vehicle-related costs. This highlights the scale of frustration among drivers who are often required to pay charging costs upfront before claiming them back.

Such concerns present a growing challenge for organisations looking to reduce emissions and encourage the transition to electric vehicles. While many employers have introduced EV schemes as part of wider sustainability commitments, uncertainty around reimbursement processes appears to be undermining employee confidence and participation.

The issue persists despite widespread efforts to improve reimbursement policies. Almost all organisations surveyed (98%) have formally reviewed their mileage reimbursement policies within the past 12 months, yet complaints remain commonplace and continue to influence employee decisions.

New systems and technologies are simplifying and streamlining mileage and reimbursement processes to negate inaccuracies and speed up the process.

The Charge Scheme has launched Reimburse to support fleet and HR teams in accurately calculating EV mileage costs. Aligned with HMRC guidance and using public and home charging data to work out the correct cost of reimbursement, it ensures employees aren’t out of pocket.

The research findings also indicate a disconnect between organisational sustainability ambitions and the employee experience. While ESG commitments are among the most common reasons businesses review and update reimbursement policies, many employees still feel the process does not accurately reflect the true cost of driving an electric vehicle for work.

Thom Groot, CEO of The Electric Car Scheme, said: “Employers have invested heavily in making electric vehicles more accessible, but the experience cannot stop once an employee receives the keys. If drivers are worried about being left out of pocket every time they charge, it creates uncertainty that can undermine confidence in EV schemes.

“The transition to electric vehicles depends on making the entire process simple and transparent. Employees should not have to calculate charging costs, or worry whether they will be reimbursed correctly. Businesses that get reimbursement right will find it much easier to encourage EV adoption and achieve their sustainability goals.”