Almost half (48%) of UK workers want Salary Sacrifice as part of their benefits package. In fact, one-third (33%) view it as the most attractive eco-friendly workplace benefit, 67% think it provides affordable access to electric vehicles (EVs), and 65% know it can help them reduce their own emissions.
We recently surveyed 2,000 UK workers to get their thoughts on Salary Sacrifice. It shows that demand for the schemes is on the rise, BVRLA’s Leasing Outlook survey showing 54.6% year-on-year growth.
While many are struggling with recruitment and keeping staff on board, Salary Sacrifice is a cost-effective way to boost your employee offering, while also supporting your sustainability ambitions.
Before you go full steam ahead with a Salary Sacrifice car scheme, there are a few things you need to consider. In this blog, we outline our straightforward, five-step process to ensure a successful EV Salary Sacrifice scheme in your business.
1) Partner up
Choosing the right leasing partner gives you the expertise and resource needed to make the scheme a success. This should include the lease, insurance, as well as service, maintenance and repair. This then means less admin time and burden for you. A specialist partner can also support with ensuring payroll and HR teams are supported in rolling the scheme out to employees.
When picking the right partner, it’s important to consider the different benefits available. Prices or extras such as Lifestyle Protection will differ across the market. Make sure you ask for example prices and compare the scheme rules to make the best decision for you.
2) Choose the right vehicles
Ahead of rolling out a Salary Sacrifice scheme, you can select CO2 caps on the vehicles employees are able to pick from. This will ensure the vehicles on the scheme support your business goals, while still giving employees choice. For example, you may choose to only offer EVs through the scheme, to help tackle the Scope 3 emissions from employees’ commuting journeys.
3) Get business buy-in
To get internal buy-in, you need to be clear about your objectives. Those objectives could be to reduce Scope 3 emissions, enhance employee benefits or attract new talent, for example. Once you know what you’re looking to achieve, your leasing partner can help you build the business case for it. For example, they can show how it can reduce your Class 1 A NI contributions or cut down emissions.
4) Take employees with you
Once you have the scheme ready to launch, you need to get the word out. Speak to employees about the benefits of the scheme. There’s lots in it for them – it’s low risk due to Lifestyle Protection, there’s no deposit needed and there are no hidden costs with maintenance and insurance included. It’s also important to show examples of how employees’ take-home pay would be affected.
5) Regularly review
Finally, your leasing partner can produce regular reporting and helpful insights into how the scheme is working. This could be everything from uptake levels to predicted Scope 3 savings. This can inform future decision-making and show you where to make any changes so you’re making the best of Salary Sacrifice.
Dan Wright, Product Owner for Salary Sacrifice at VWFS | Fleet, comments: “All the evidence shows that there’s real workforce interest in Salary Sacrifice car schemes as part of overall benefits packages. These schemes are no-brainers for many businesses as they help to reduce Scope 3 emissions, while also boosting, staff retention and tax efficiency.
“By following the five-step set-up process and collaborating with specialist leasing companies such as VWFS | Fleet, businesses can ensure the delivery of a fit-for-purpose scheme that ticks all the boxes.”
Considering Salary Sacrifice for your business? We’ve got the expertise.
If you have a specific question or would simply like to discuss your fleet requirements, please contact us.
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