4 ways an EV salary sacrifice scheme can benefit your business
Electric car sales are skyrocketing, with 56% more battery electric cars hitting the UK's roads in the first half of 2022 compared with the first half of 2021.
It’s not hard to see why. Electric cars are a sustainable choice and are much cheaper to fuel than traditional petrol cars. Especially with the price of petrol as high as it is right now. With more models entering the market and more charging stations popping up around the country, driving an EV has never been easier. But many people still believe electric cars are too expensive for them.
One way to break this barrier is for employers to run salary sacrifice schemes for electric vehicles. Using these schemes, employees can lease EVs through their company, saving money as the charge comes out of their pre-tax salary.
Sound good? We think so. And so do lots of businesses including Dyson, Purple Bricks, Huel and Nandos. In fact, more than half of UK businesses already offer their employees a sacrifice scheme for electric vehicles.
With so many companies riding the electric wave, now’s the time to jump on. There are lots of advantages for businesses who do — read on to discover four ways an electric car salary sacrifice scheme can benefit your company.
1. Keep your employees happy with benefits they actually want
Employee benefits show your team that you care. People are more likely to love their job if it’s at a company that values them. Plus, if they’re happy and content, your employees will work more effectively.
A great benefits package also encourages your people to stick around; 75% of employees say they’re more likely to stay in a job because of the benefits package. Offering EVs through salary sacrifice is great because it’s a benefit your employees can actually use, rather than something that looks good on paper but has no real value.
Giving your team access to an electric vehicle through salary sacrifice will let them know they’re valued, making them more productive and more likely to stay with your company for the long term.
2. Attract the best talent with perks that match their values
It’s not just your current employees that’ll love the option to lease an electric vehicle but potential new starters too.
Candidates take employee benefits into consideration when applying for new roles. 78% of people are more likely to go for a job if there are details of benefits in the ad. And of the many, many options for employee benefits, “help to get a car” ranks in the top five for most job seekers.
Job hunters also want to join companies that are working to make the world a better place. Committing to putting more EVs on the road will make your business a top choice for sustainability-minded applicants.
Offering electric cars through salary sacrifice will not only show potential employees that you’re serious about the environment but will make your company stand out against other potential employers.
3. Hit your sustainability goals AND prove it to the world
In 2019, the transport sector was responsible for almost a third of the UK’s greenhouse gas emissions. The majority of this pollution came from cars and taxis.
Tackling greenhouse gas emissions is one of the many ways we can work towards a cleaner future. Because electric cars are better for the environment than petrol and diesel vehicles, putting more EVs on the road will make a big difference in the fight against climate change.
Making it easier and cheaper for your employees to access electric cars will also start to encourage more people to make the switch to electric. Without costing your company anything you’ll be helping make the world greener, proving your company’s commitment to a more sustainable future
4. Choose benefits that save your company and your employees cash
An EV salary sacrifice scheme will save your business money. First of all, it’s totally free to join. And for each employee who joins the scheme, you’ll pay less employer National Insurance.
In turn, your people will save money on their taxes, as the payments for their new electric car will be taken from their pre-tax salary. This means your employees can save up to 40% on the full electric vehicle package (new car, charger, insurance, breakdown, and more). They’ll get a top-of-the-range car at an affordable price.
Giving your employees access to an electric car through salary sacrifice is an excellent way to give them a useful, great-value benefit. They'll thank you for making it cheaper to get a snazzy new car, all while helping to make the world a more sustainable place.
