The salary sacrifice car scheme is a product primarily aimed at employees, and offers them a non-cash benefit in return for a portion of their gross salary. This provides a significant lifestyle benefit for the employee and is a means of achieving cost-effective motoring on a nett-zero carbon basis.
However, the salary sacrifice car scheme also has several very tangible benefits for the employer, which enables them to streamline a number of processes and operations and build a positive and progressive culture for the business, so here we have highlighted the six main reasons why salary sacrifice car schemes should appeal to every employer.
1. Reduced carbon footprint
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The scheme provided by Pink Salary Exchange deals exclusively with electric vehicles, because zero-emission vehicles enable the employee to take their salary contribution from their gross income, not nett. This means that the organisation is immediately reducing its carbon impact, which creates a positive attitude and culture on the road to nett zero and also contributes towards environmental targets and objectives, which may be set by internal standards or by external standards such as ISO14001.
2. Lower national insurance (NI) payments
Employees driving an electric vehicle through the salary sacrifice car scheme have their salary taken from their gross pay and therefore pay less in income tax and national insurance. This subsequently means that the national insurance commitment of the business is also reduced.
3. Fleet costs are better managed and reduced
Leasing fleet vehicles rather than buying them provides a series of cost-saving measures. If you sign up for a salary sacrifice car scheme through Pink Salary Exchange the employee can take advantage of our close relationships with many of the best vehicle manufacturers. Our 20-plus years’ experience in the industry has allowed us to build a position of trust and reliability in the industry, this means our close partnerships result in multi-bid funders guaranteeing the best vehicle leasing deals currently available. This could include batch lease deals for larger fleets, which could be the most cost-effective way to run your fleet. And because lease deals involve monitoring vehicle mileage, you automatically implement better vehicle tracking and monitoring practices, so that fuel, time and resource wastage is reduced.
4. Employee engagement
It is widely accepted that salary sacrifice car schemes are a great way to motivate and engage employees, which promotes an inclusive and positive culture and encourages employees to perform well. Consequently, this can improve productivity and may even act to reduce absenteeism and accident rates as people are more focussed. Overall, this can improve the efficiency of the business.
5. The appeal of the business
A facility to offer non-cash benefits via a salary sacrifice scheme is growing in popularity and electric vehicles in particular are becoming more and more commonplace, with people keen to make the transition to cleaner fuels and net-zero carbon motoring. For this reason, a salary sacrifice car scheme is a big attraction when selling the appeal of a business to a potential employee. This enhances the image of the business and enables you to attract the very best talent available, saving you important costs in terms of resources and recruitment. It also acts to help retain this talent over the long term, while improving the public image of the business at the same time.
6. Managing grey fleet
Grey fleet is classed as vehicles which are not company owned but are used on company business. The employer has a duty to manage these kind of vehicles in the same way as company-owned fleet, so the online management portal supplied with the Pink Salary Exchange scheme improves compliance in this respect and enables a simple and efficient method of managing grey fleet.