How Employers are Using Salary Sacrifice in 2024

A car is an essential part of many people’s lives, and with many Brits switching to EV driving as the UK aims to achieve Net Zero by 2050, more businesses than ever are making the most of salary sacrifice schemes.

We’ve analysed hundreds of job advertisements on Indeed to see exactly how many and which types of businesses are offering salary sacrifice incentives as a benefit to their employees.

We've uncovered everything from the industries most likely to offer EV salary sacrifice and the UK regions you’re most likely to be offered the perk to the likely savings associated with the scheme.

Key findings:

• After energy and auto, the healthcare, manufacturing and construction industries will most likely advertise EV salary sacrifice as a job benefit.
• Octopus EV’s fleet has grown by 100% in the last 12 months.
• Businesses signed up to Octopus EV’s salary sacrifice scheme have increased by 50% in the last year.
• The most common salary associated with the benefit is £42,691.
• Reading in Berkshire is the UK town most likely to be offered a job with the salary sacrifice benefit.
• According to county-specific data, residents of Greater Manchester are most likely to be offered EV salary sacrifice when starting a new job.
• The job title most commonly associated with EV salary sacrifice is ‘Mobile Vehicle Technician’.
• Companies with at least 4,000 employees are most likely to offer the benefit.

Work perks are discussed at length in job ads, from duvet days and flexible hours to health insurance and office parties. However, one benefit that has received more interest in the past year is EV salary sacrifice, with Octopus EV’s fleet growing by 100% in the last 12 months.

Research from HR Magazine found that more than half (56%) of SMEs plan to implement EV salary sacrifice in the next 12 months, so the benefit's adoption is likely to become even more common in job adverts.

When we analysed the industries most accepting of EV salary sacrifice, it is no surprise that the energy and auto industries are huge advocates of the benefit. However, many other sectors are also championing EVs in job ads.

The healthcare industry is an absolute powerhouse in the EV space, with 13% of the 300 jobs analysed from the sector. Manufacturing (8.5%), construction (5.3%), finance (5%) and council (5%) industries also encourage employees to use the benefit.

1. Energy - 15.7%

It is no surprise that energy is in the number one spot, given the industry's growing focus on sustainable practises. Despite ranking 17th for businesses signing up and 21st for employees with access to our scheme, the sector ranks impressively high (5th) for the number of drivers utilising the EV salary sacrifice benefit. This highlights that a high proportion of those with access to the scheme within the energy industry are keen to participate and use the benefit.

2. Auto - 14.2%

Those within the auto industry have a natural alignment with EV adoption, so it makes perfect sense for them to rank as the industry second most likely to offer EV salary sacrifice as a benefit. Within Octopus EV, data shows that Auto is 27th in terms of businesses signed up for our scheme, 19th in the number of employees with access to our scheme and 14th for drivers in cars. As there are only five places difference between the number of employees with access and the number of car drivers, this shows that those with access to the scheme are equally likely, if not more likely, to utilise the benefit.

3. Healthcare - 12.8%

Healthcare ranks third among industries most likely to offer EV salary sacrifice schemes, fitting well with EV owner's commitment to reducing air pollution, promoting a healthier population. Our data shows healthcare at 16th for businesses signed up, 7th for employee scheme access, and 18th for drivers in EVs. This gap between business sign-ups and employee utilisation highlights the need for more employee education on the benefits of this program.

4. Manufacturing - 8.5%

Ranking as fourth most likely to offer the scheme is the manufacturing industry. Our data shows a high interest in EVs within this sector, which is number 7 in businesses signed up, number 6 in the number of employees with access to our scheme and number 8 for car drivers. Manufacturing ranks highly and within the top ten all round, proving their commitment to reducing the industry's carbon footprint.

5. Construction - 5.3%

Construction proves to be a real standout in the EV space, with more employees in our scheme than in any other industry, as well as being number two in terms of businesses signed up, and number four for car drivers. This shows a huge interest in electric vehicles within construction, likely due to the industry's need for frequent travel to client sites and a commitment to reducing travel-related emissions.

We also looked into the locations of the job ads that advertised the benefit, and almost one in six (16.4%) were located in Greater Manchester.

When it comes to towns and cities, Reading proved to be the most popular for EV salary sacrifice, with 9% of all jobs analysed offering the benefit residing in the town.

When analysing the Indeed job ads, we found that the average salary of those jobs offering EV salary sacrifice is £42,691.

Our research shows that there are job titles that are way more likely to be offered the EV salary sacrifice benefit.

While this may not come as a surprise because of its position in the auto industry, Mobile Vehicle Technician comes in first place, with 6 out of 300 ads using this job title.

Many other job titles were used three times, including Insurance Manager, IT Support Engineer, Project Manager, Roadside Mechanic, Data Analyst and Digital Marketing Executive.

A YouGov survey found that ‘once employees fully understand the benefits, the majority (over 50%) would like their employer to offer a salary sacrifice scheme for electric vehicles’. This shows that more work needs to be done to educate employees and employers on how much they can actually benefit from a scheme.

Long story short, employees could be looking to save 30-40% on a brand new EV through our salary sacrifice scheme, depending on salary band.

Employees make savings on their tax and personal benefits when they switch to an electric car under a salary sacrifice scheme. The payments come straight out of the employee’s gross pay, which reduces their monthly salary - but because of this, there is a reduction in income tax and national insurance payments.

If you were leasing a car out of your net monthly payments (salary after tax), you’d also be paying your taxes and car payments. That’s why getting an electric vehicle through a salary sacrifice scheme is so much cheaper.

Let’s break it down…

With a basic rate tax of 20%, an EV BYD Atto 3 could save you £134.95 a month compared to a fuel Nissan Qashqai DiG-T MH Visia - a total annual saving of £1,619.40!* Check out our salary sacrifice calculator to see how much you could save.

Our research in The Sustainable Workforce Report found that 51% of employees don’t feel comfortable asking their employer for the benefits they want. However, 74% want their employer to offer salary sacrifice.

While the cost saving of EV salary sacrifice is an incredible benefit, the pros don’t stop there.

From helping employees to save on tax and lowering ‘fuel’ costs, to offering a wide selection of brand new EVs, the opportunities are endless.

And with our research finding that 75% of employees are more likely to stay in their job role due to their employee benefits package, an EV salary sacrifice scheme could even help employers to attract and retain the best talent.

Ensuring that employees are aware of the benefits on offer at their workplace, what they entail, as well as their value is very important as this will influence the number of people partaking in them.

1. Inform new hires of the benefits on offer

Ensure that employees are aware of the company benefits from the get-go. Within their onboarding, inform them of the variety of benefits on offer, why they are useful to have and when and how they will be able to access them.

2. Offer refresher sessions on company benefits

Day-to-day life can get in the way of employees looking into their workplace benefits, which is why offering refresher sessions can be very beneficial to remind them what they have access to, as well as how they can access it.

3. Review usage data from benefit providers

Having a complete understanding of how many employees are using the benefits on offer can be an insightful way to see where further information may be required. If a benefit is being redeemed less than others, this may be a sign that it is time for a refresher on what this benefit offers, and why it is of value.

4. Run regular surveys to discover which benefits are most and least valued

Some benefits may not be as valuable to employees as others, which is why it is important to regularly check in to discover which benefits may not be worth continuing to offer. Running regular surveys will allow you to easily access and update this information.

5. Provide clear and accessible information

Using brochures, online portals and emails, ensure that all information about the benefits on offer at your company is readily available for employees to access at their leisure.

Whether you’re an employer looking for inspiration on inputting a Net Zero strategy into the workplace or an employee looking for savings with an EV salary sacrifice scheme, here at Octopus EV, we are on hand to help with any queries.

Octopus EV analysed 300 Indeed job adverts that promoted ‘EV salary sacrifice’ as a work benefit for employees - looking into the salary associated with the role, location, industry and business size.

*Savings based on the pricing of a 40-year-old living in Dorset. Location and age affect the price of insurance. The most recent update for the pricing was on 19/2/24.