When working professionals hear the words’ salary sacrifice,’ it can sound a little scary – let alone implementing one! After all, we work so hard for our monthly/weekly salary – why should we sacrifice any of it? Especially in today’s economy, where inflation is a growing issue for many UK-based families, explaining to employees what a salary sacrifice scheme can be challenging for employers and the reasons for implementing one.

However, the only scary thing about salary sacrifice schemes is the thrilling benefits they can provide organisations and their staff, which is why more and more UK businesses are considering implementing them. Whether you’d like to save on your national insurance contributions, monthly tax payments, or pension payments, a salary sacrifice scheme can assist you with all this and much more!

Another popular benefit of salary sacrifice schemes is that they can be used to obtain better, newer, and more sustainable company cars, which can be a massive convenience for employees and more cost-effective than using their own vehicles. However, if convenience enough isn’t a reason to convince you to consider using a salary sacrifice scheme for a company car, we outline several others in our article below:

 

Getting Started Is Simple

Ultimately, when you learn about a new scheme with tons of benefits, you want your business to start reaping those as soon as possible. So, more than likely, you won’t want to be bogged down with a scheme that will take you hours of pouring through administrative paperwork before you can join – you want something straightforward and can be implemented in a couple of days.

If this is the case, you’ll be relieved to learn that the sign-up process for salary sacrifice schemes is straightforward. Admittedly each process will vary depending on which provider you approach. Still, generally, all it will entail is filling out a few business-related details to ensure your company meets the criteria for the salary sacrifice scheme you’re planning to join, then waiting a couple of days for someone to get back in touch with you with more information about the scheme if you qualify.

If you’d like to learn more about the sign-up process involved with salary sacrifice schemes, consider using LV ElectriX’s advice on salary sacrifice schemes, which can help give you a good idea of the timescales, expectations, and other information you might need about salary sacrifice schemes. Consider visiting their website for more information, or contact a team member directly and see how they could help kickstart your company car salary sacrifice journey today.

 

Improves Staff Morale And Retention

Ultimately, hard-working employees are a credit to the success of a business; however, employee output is directly correlated with morale, which is why modern-day employers must understand how an employee’s professional life can be affected by their environment, productivity, and morale. Not only that, but it is also tied to employee retention, which is essential for businesses looking to hold onto quality employees.

So, if you’re organisation has been searching for a way to boost employee morale and retention, call off the search! As a salary sacrifice scheme could be the very thing, you need to bolster both. Using a salary sacrifice scheme, employees can swap part of their salary for a non-cash benefit, such as a company car which can incentivise them to stay at your firm while boosting morale.

Since cars are a significant purchase, you might find that employees are happy to sacrifice a part of their salary to reap some attractive benefits that company cars provide. Since it allows them to pick from various new vehicles, it eliminates maintenance costs, makes their commute more manageable, and many other benefits!

Not only can using a salary sacrifice scheme for company cars make your staff happier and boost retention but it can also be used as a hiring tactic since many employees might be more inclined to accept a job offer from a company that can promise them a new car from a selection of vehicles at a more cost-effective price!

 

Better For The Environment

 In today’s business world, sustainability has become a trend that no reputable business can ignore. Due to this, many companies have started to make a conscious effort to reduce their carbon footprint and their day-to-day operations’ impact on the earth, whether this is by encouraging flexible working options, collaborating with other green businesses, improving their energy efficiency, donating supplies that are in good condition, and much more.

However, many overlook one of the essential parts of their work days: the commute to and from the office. As of the 2021 Census, it was reported that over 12.5 million working professionals in the UK used a car, van, taxi etc., to make their daily commute to work, although one of the most convenient ways to travel petrol-fuelled vehicles is also the most damaging to the environment.

Emissions from petrol-fuelled vehicles are one of the leading causes of global warming and local-scale pollution; however, they are also one of the easiest ways to get from A to B, especially if you live in a rural area or quite far from where your workplace is based. Yet, there are ways a salary sacrifice scheme can help this, especially if you opt for one that specialises in electric cars.

During their lifespans, electric vehicles emit far fewer emissions than traditional petrol-fuelled vehicles, mainly when recharged with electricity sourced from renewable energy sources. Plus, if your business is based in a larger city like London or Edinburgh, which charges congestion fees, if you switch from internal combustion engines to electric, you will be exempt from paying these charges.

So, not only can switching to an electric company car using a salary sacrifice scheme help your business minimise its effect on the environment, meet sustainability goals, and demonstrate that your company is pioneering for a greener future, but it can also save you more money which can be filtered into more critical business areas.

 

It Offers More Flexibility

If the past couple of years has taught the business world anything, flexibility is vital to overcoming any challenge. Not only is flexibility helpful in helping businesses devise new ways to work and rectify problems, but it also gives employers and their staff more freedom which can be hard to put a price tag on nowadays.

Fortunately, if your company prides itself on being adaptable, using a salary sacrifice scheme to get company cars is the perfect option for those wanting more freedom when choosing a new company vehicle.

Unlike a PCP or hire purchase contract, which can be expensive and tricky to get out of if you decide that it’s no longer a feasible solution for your business, a salary sacrifice scheme allows businesses to upgrade to a new car once their contract runs out without being tied to a costly bank loan.

Whether you’d like a Nissan Leaf or a Porsche Taycan, salary sacrifice schemes allow companies to choose from a brand-new vehicle each time at a much lower cost than it would be to finance without the scheme. You can select the model/brand of your company car and decide on leasing timescales, which offers you much more flexibility than buying outright or other leasing options.