Electric vehicles (EVs) are the future of motoring and increasing sales figures over recent years have made this an inescapable fact rather than the fanciful prediction of maybe a decade ago. But some people are still reluctant to make the transition to electric driving from the traditional petrol and diesel vehicle. In a business, there are many benefits to EV driving for both the employer and the employee, and the salary sacrifice car scheme is an ideal way to support employees in making the switch to more sustainable motoring.

The employees of a business can benefit from electric driving by reducing their own carbon footprint, lowering their vehicle running costs, enjoying tax benefits and future proofing their motoring, and here we have outlined the benefits the employer can enjoy too. These are the key reasons why employers should promote EVs as part of an attractive salary sacrifice car scheme:

• Complying with the company’s environmental policies

A progressive and successful business should have an environmental policy and should be committed to meeting targets, complying with regulatory standards and continually improving its performance. A commitment to switching employee vehicles and grey fleet to zero-emission vehicles will help to meet environmental objectives and have a positive impact on the public image of the business.

• Attracting a high calibre of employee

The 21^st century employee is far more engaged in the environmental credentials of a potential employer than in previous years. If EVs are strongly promoted as the vehicle of choice within a salary sacrifice package it illustrates the social conscience of the business and can be used front and centre of job profiles when advertising new positions. This in turn will attract a better quality of candidate.

• Improving your profile as a good employer

Employee benefits are now a standard expectation within the package a potential employer can offer, and the salary sacrifice car scheme is one of the most common features of that package. Offering the chance to switch to EV driving can be a huge attraction to employees and can be a reason why good employees are not only attracted in the first place, as above, but also why they are retained long term. A strong public image as a sustainably conscious employer can promote the organisation as progressive, dynamic and committed, which can attract good employees and new income streams.

• Reducing fleet costs

Zero-emission vehicles within a salary sacrifice car scheme qualify the employee to take the salary portion from their pre-tax salary. This means they ultimately pay less income tax and national insurance. While this is a major benefit for the employee, it also benefits the employer. For the same employee, the business also pays less for their national insurance contributions. There are also the costs associated with operating grey fleet to consider. EVs have fewer running costs and reduced service and maintenance costs, so switching grey fleet to EVs will also help reduce the fleet costs of the business.

• Lower BIK rates

Choosing an electric car through a salary sacrifice scheme offers significant savings for employees, thanks to the low Benefit-in-Kind (BiK) tax rate. This means you pay much less tax compared to petrol or diesel cars, making it a highly cost-effective way to drive a brand-new EV. Combined with lower monthly payments, savings on fuel, maintenance, and road tax, it’s a smart, sustainable, and affordable option for everyday driving.

• Improving morale

Fundamentally a salary sacrifice car scheme is good for the morale of the business because it is inclusive. The scheme is open to everyone (providing their post-sacrifice salary meets minimum wage) and means employees at all levels of the business can benefit in the same way. Throw EVs into the mix and the feelgood factor goes up another notch. People sometimes need a nudge to do the right thing, even if the various benefits are staring them in the face. Making the switch to electric driving through a salary sacrifice car scheme is a great example of that. By helping employees reduce their own carbon footprint you are supporting them in making positive lifestyle changes which can have a profound impact on a personal level, and of course on a global level too. This helps to deliver a stable workforce with low staff turnover, and in turn this helps improve productivity and the culture of the business.

Make the switch to electric driving with Pink Salary Exchange

If you need support in promoting the benefits of electric vehicles in a salary sacrifice car scheme, then contact our team at Pink Salary Exchange today. We have access to the best EVs on the market and can help your employees find a suitable lease deal to suit their individual circumstances. We have helped many businesses benefit from the switch to electric driving, so let us help charge your business and help your employees make the switch today.