Increasing demand for environmentally friendly workplace benefits is evident among UK employees.
- New research highlights the gap between the availability and demand for Salary Sacrifice car schemes.
- Only 32% of employers offer Salary Sacrifice car schemes, while 48% of employees desire it.
- Salary Sacrifice car schemes provide affordable access to electric vehicles, aiding in transport sustainability.
- Sustainable benefits like Salary Sacrifice are pivotal in attracting and retaining talent.
In a recent survey by Volkswagen Financial Services (VWFS) Fleet, it emerged that there is a notable discrepancy between what employees desire and what businesses provide concerning sustainable workplace benefits. The survey indicates that nearly half of the workforce in the UK is looking for Salary Sacrifice car schemes, yet only 32% of businesses offer them.
A Salary Sacrifice car scheme is an arrangement where employees forego a portion of their pre-tax salary in exchange for a new vehicle, which is a significant financial perk. Dan Wright from VWFS Fleet explains that this scheme offers employees access to a new vehicle with comprehensive coverage without hidden costs or upfront payments, thus making it an attractive proposition at minimal expense to employers.
The drive towards workplace sustainability is becoming increasingly pronounced, especially with imminent climate goals. There is a considerable risk if businesses fail to address employees’ sustainability concerns, as research shows that 79% of employees consider it important for their employer to engage proactively in sustainable practices. Notably, younger generations are more inclined to scrutinise a company’s environmental impact before accepting positions, as indicated by findings from Deloitte.
Specifically, the research by VWFS Fleet found a growing appreciation for Salary Sacrifice car schemes, with a third of the workforce ranking them as an attractive eco-friendly benefit. Additionally, a significant portion of employees wish to reduce their commuting emissions, with many advocating for Salary Sacrifice schemes due to their facilitation of affordable electric vehicle access—a perspective shared by 67% of the workforce.
Salary Sacrifice schemes are further incentivised by tax regulations, particularly the Benefit-in-Kind rates for electric vehicles, which remain significantly lower than those for petrol or diesel vehicles. These economic advantages, coupled with the push for sustainability, present a critical opportunity for businesses to enhance their employee benefits.
In the context of current recruitment and retention challenges, VWFS Fleet underscores that aligning employee benefits with eco-friendly solutions like Salary Sacrifice can be influential in attracting top talent. This demand highlights the potential of these schemes not only in meeting employees’ expectations but also in achieving broader sustainability goals.
The accelerating demand for sustainable workplace benefits presents a strategic opportunity for businesses to meet workforce expectations while advancing environmental goals.
