Salary sacrifice electric cars have been rated the most valuable flexible benefit for employees in a major new survey.
Carried out by fleet management and salary sacrifice specialist Fleet Evolution, the poll of 5,000 employees found 40% of respondents said salary sacrifice was the most important benefit in their opinion. This was followed by pension (37%) and flexible working (9%).
Some 55% of employees said they would not have opted for an electric car had it not been provided through a salary sacrifice car scheme. Factors that informed their decision to transition to an EV included the provision of workplace charging and the high costs of fossil fuel. But when asked what was the single most important factor that prompted them to switch, 78% of respondents said that it was the cost savings on offer.
A major factor was the fact that Benefit-in-Kind tax rates on EVs with zero carbon emissions are currently 3% from the start of this month, compared to much higher rates, typically in the 20-30% region, for fossil-fuelled cars.
There was overwhelming support for employers that offered a salary sacrifice car scheme, with 62% of those surveyed saying that they would not move to an employer that did not offer salary sacrifice cars as an employee benefit.
Andrew Leech, founder and managing director of Fleet Evolution – which is exhibiting at this month’s Great British Fleet Event, said the survey showed the strength of feeling around salary sacrifice electric cars and how they played an important role in staff recruitment and retention.
“The current BiK tax regime makes electric cars affordable for many employees who are above the minimum living wage, especially when compared to the high tax rates and high fuel costs for both petrol and diesel models currently.
“Electric cars are also an extremely valuable benefit to employees due to their convenience, ease of use, absence of upfront payments and value for money. There were very strong feelings expressed amongst respondents to our survey that they would not consider moving to an employer who did not offer an electric car salary sacrifice scheme.
“And an overwhelming majority said they would not have made the switch to an electric car without it being offered through a salary sacrifice scheme.”
Leech also said there were also significant advantages for employers.
“A key benefit from an employer perspective is the impact on the company’s ESG (Environment, Social and Governance) policy, as EV salary sacrifice schemes are very carbon efficient because they promote low carbon vehicles across the board at a time when many companies are looking to cut their carbon footprint,” he added.
The Fleet Evolution salary sacrifice car scheme offers a whole array of cost saving benefits for employees, including all servicing and repair costs, road fund licence, fully comprehensive insurance, corporate discounts and no deposit.
