Salary sacrifice schemes have been growing in popularity for some time now. In fact, they have been so successful that more and more companies are offering them as part of their employee benefits package, with 36% now providing this option.
But what exactly is driving this growth, and why are they so beneficial for employers and employees alike? In this article, we’ll dive into what’s pushing the continued growth of salary sacrifice schemes and their impact on businesses, employees, and the sector in general.
One factor that’s driving the growth of salary sacrifice schemes is employee demand. Almost 75% of employees have expressed interest in salary sacrifice schemes for EV cars, while studies show that companies offering broader employee benefits are 75% more likely to retain staff. These figures are difficult to ignore, and its likely that this will be a benefit that companies begin to offer more widely. For any business, the longer staff members stay with a business, the more knowledge they accumulate, which, in turn, enhances the company’s value.
Companies that provide desirable benefits like salary sacrifice schemes often create a more engaged employee base. They achieve this by making staff feel valued and appreciated, improving their dedication to the company. This is because cars are considered an attractive benefit which is well-received by employees, helping to motivate and engage staff. This, in turn, can improve productivity and help to build a more positive workplace environment.
Similarly, high staff turnover can be costly for businesses due to the increased investment in new starters associated with job advertisement, onboarding, and development. Car salary sacrifice schemes, among other benefits, can can contribute to improved staff retention by ensuring employees feel valued, with one-third of all interviewees saying that the best perk of their job was the company car. This demonstrates the huge impact that offering a car salary sacrifice scheme can have.
Some car salary sacrifice schemes also contribute to a business’ environmental, social, and governance (ESG) agenda. By offering access to electric vehicles, companies can reduce their carbon footprint. It also supports employee welfare and showcases good governance practices and helps to reduce the instances of greenwashing – the conveyance of a false impression about a company’s environmental dedication.
Because these schemes often involve leasing arrangements, businesses can benefit from predictable monthly costs and reduced capital expenditure. The inclusion of maintenance and insurance in the scheme can also help companies minimise unexpected costs, contributing to overall financial efficiency and better budget planning and allocation.
Salary sacrifice schemes are also easy for businesses to manage. For example, our Novalease scheme is specially designed to minimise employer administrative input. A dedicated account manager will set up and manage your scheme, while a committed customer service team minimises administration and supports drivers with in-life queries. This means that managing a salary sacrifice scheme couldn’t be easier, and we are proud that our Novalease scheme is one of the lowest-admin solutions on the market.
As an employer or an employee, knowing that your vehicle is leased from a reputable provider means you can be confident that it’s safe to use. You can rest assured knowing that your car will remain a reliable choice going forward, and we’ll support you every step of the way.
The future of car salary sacrifice schemes is likely to be shaped by evolving trends in mobility and sustainability. As businesses increasingly prioritise environmental responsibility, these schemes may shift towards electric and hybrid vehicles to reduce carbon emissions, much like our Novalease scheme already offers.
At SG Fleet, we’re proud to offer Novalease, a comprehensive and bespoke solution that allows you to lease any used or new electric or hybrid car on the UK market. All vehicles will benefit from our corporate buying power as well as the manufacturer discounts we have in place. We can offer competitive pricing to massively reduce the cost barriers of switching to an EV, making it accessible for as many people as possible.
If you want to learn more about Novalease or any of our other offerings, please get in touch – our team of experts are always happy to guide and support you.
- How EV Salary Sacrifice Schemes Can Power a Greener Future
- How Salary Sacrifice Schemes Can Benefit Your Business
- Why Salary Sacrifice Schemes Are So Popular with Employees
