When many employees are introduced to the idea of a salary sacrifice scheme they often have never heard of it before, also, they can immediately generate grave concerns about it, or they can remain very indifferent to the prospect. Knowing how workplaces often operate, there can also be a great deal of misinformation floating around. Put simply, if someone is taking a portion of their salary away, an employee is entitled to ask “what’s in it for me?” For that reason, it is essential that a business is fully prepared for launching a salary sacrifice scheme, and is armed with the information and strategies to make it a success.

Managing change in the workplace is always a challenge and will always meet some form of resistance. How we approach this in terms of being prepared and anticipating reactions is central to how successful this change will be. Here, we have put together some important considerations when preparing to launch a salary sacrifice car scheme, and which will help you fully explain the benefits and win round key people for a healthy percentage of employee sign-up.

What’s in it for me?

A launch such as this might as well answer the key question first; so hit your employees with how a salary sacrifice car scheme will benefit them. This should include statements such as:

• Cost savings – On national insurance and income tax, because the sacrifice is taken on gross salary, plus driving an electric vehicle (EV) is cheaper in terms of lease costs and motoring costs, than buying a vehicle and driving a petrol or diesel vehicle.
• Brand new car – Under the scheme you will always be driving a brand new vehicle, meaning your car will be reliable, will benefit from the latest technology and will encounter minimal service and maintenance costs.
• No deposit – There is no upfront cost with a salary sacrifice car scheme.
• Carbon footprint – Employees will improve their green credentials by not driving a fossil fuel car and producing zero emissions.
• Fixed cost – The leasing cost which is taken from an employee’s salary is fixed for the duration of the lease and hence is easy to budget for.
• Flexible – Lease terms can be adjusted to suit your budget and circumstances, ranging from 12 to 48 months.
• Low-risk – There is no long-term commitment or worries about depreciation, and even if you leave your job there is an early termination agreement, meaning you won’t be hit in the pocket.

Communications

As well as defining the key benefits as above, your launch strategy should involve good communications. Information should be simple and clear with no technical jargon or complex financial models. You should make sure that employees understand the scheme is purely voluntary and is open to all employees (providing the amount “sacrificed” from their pay does not take them below minimum wage). Promoting the scheme as fully inclusive is very important as many employees see ‘company vehicles’ as an elitist thing that doesn’t include them. Salary sacrifice schemes are something very different.

Communications should include initial emails and letters to all staff to introduce the idea, but should be followed up by a series of briefings and team meetings where concerns can be raised and addressed. Healthy discussion usually resolves many fears about salary sacrifice. Also, you can be prepared by having answers to most questions ready, and having comprehensive literature from your scheme provider, such as Pink Salary Exchange, who will have documents prepared to answer all queries in a straightforward way.

Money

Talking money is the nitty gritty of winning employees over. You should be prepared to show examples of how the scheme will work in terms of various different types of vehicle, and what this will cost the employee. The portion of salary sacrificed each month can be shown for different tax brackets and different vehicles, to show scenarios that everyone can relate to.

Environmental benefits

You can win over hearts and minds by reminding employees of the environmental benefits of EV driving. People are more tuned into sustainability than you might think, but there will always be some concerns about switching to EVs. Be armed with information on cost savings, range anxiety, the national charging network and how EV driving can be incorporated into people’s lifestyles without major change. The impact of fossil fuels and emissions on the environment also helps to drive this message home.

How it works in real terms

Explaining how the scheme works in terms of administration and how this changes for the employee is also very important. But more than that, you may be able to arrange for employees to look at a range of EVs and even test drive one. This will help them get over any range anxiety and because EVs represent the very latest technology in terms of performance, safety features, comfort and infotainment, this is an almost guaranteed method of achieving buy-in and getting people excited about the scheme.

Case studies

If you have employees who have experienced a salary sacrifice scheme in other employment, it is a useful tool to have. They can share their experiences and help to address any concerns, possibly also explaining how it made employees more engaged, motivated and loyal to their employer. Other employees may relate to this better than simply reading a lot of literature. The business should be able to call upon some resources who can provide real life experience of a scheme and how it benefitted them, your scheme provider may also be able to help. Word of mouth is often the most powerful tool in this kind of scenario.

Progress

Even once the scheme has launched, you should keep momentum going by tracking progress and posting how many employees have signed up. This may encourage more. React to feedback and tweak the scheme offering or launch information accordingly.

Launch your salary sacrifice car scheme with Pink Salary Exchange

Most importantly you should make sure you promote your scheme as a dynamic employee benefit. Make the scheme consistently visible and ensure positive messaging keeps momentum going. At Pink Salary Exchange we can help you with this messaging and your entire launch campaign, so contact our team today and we can make your salary sacrifice launch a successful one.