The business plan of a fledgling or start-up company should include a projected timeline for how it intends to evolve. Getting a small business off the ground is incredibly hard work, but is clearly achievable if the product or service is good and factors such as finance, marketing and people are managed well. At some point in this trajectory it is common for a business to assess how it plans to re-model itself as a larger scale organisation, maybe taking the step from being a small-medium enterprise (SME) to a bona fide ‘big business’. This is a delicate process which has to be managed strategically, but workplace benefits such as salary sacrifice can play a significant role in making this possible.

A business looking to evolve in size and structure needs to get a lot of things right, but a major element of this is attracting the right people. Big businesses operating in your market have the stature and resources to hoover up the best talent, which an SME can often view as an unfair advantage. But salary sacrifice car schemes are one example of an ‘easy win’ and low-hanging fruit which can help a smaller business with limited resources bridge the gap to start competing with bigger businesses.

Over half of SMEs plan to introduce salary sacrifice car schemes

In 2023 a survey carried out by HR Magazine found that 56% of SMEs planned to introduce salary sacrifice car schemes to their employees within the next 12 months, and 68% were considering it. This shows that many SMEs have recognised the value in offering better renumeration packages in order to attract and retain a better standard of employee. After all, workplace benefits such as salary sacrifice schemes, flexible working, health insurance and social events carry minimal costs to the business, and are increasingly being seen as a standard demand of a 21^st century employee.

However, the salary sacrifice car scheme offers a range of benefits to an SME, particularly if the vehicle in question is a zero-emission electric vehicle (EV). These benefits can further assist in driving turnover, reducing costs and improving operational efficiencies, and all combine to put an aspiring business on a sound footing and with the ability to think big and be more ambitious in competing at a higher stage. These employer benefits include:

• Reduced national insurance payments for each employee
• Reduced carbon emissions
• Better managed compliance in terms of health & safety and the environment
• Reduced fleet costs – a lower grey fleet risk because employees driving their own vehicles now have a well-maintained and brand new electric vehicle
• Reduced fuel costs
• Improved employee loyalty through promoting fairness and inclusivity
• Improved morale leading to better productivity

How an SME can promote itself as a more attractive employer

A salary sacrifice car scheme through Pink Salary Exchange includes a lease package for a brand new EV, and in most cases an employer will look to agree bulk fleet deals whereby the sourcing costs become more affordable and the employee has a better choice of the best EV leasing deals available on the market. This all becomes hugely attractive to an employee, and helps the business attract a better standard of employee. But the work isn’t over there for the aspiring business. To help retain these employees and attract others, the salary sacrifice scheme needs to become a staple part of the recruitment package. This means:

• Including reference to it in job adverts and role profiles
• Including information sessions in induction training
• Dedicated HR support during the sign-up process
• Refresher sessions to review and inform employees of the salary sacrifice scheme benefits, savings possible and current sign-up figures

Introducing a salary sacrifice car scheme to an SME enables a business to think big, and means there are no barriers to starting the process of becoming a more attractive business. People are often an obstacle to how a small but ambitious business takes the step onto the next level, because you can’t always rely on people who were with you at the start wanting to continue on that journey, even if the opportunity is there for them. But offering workplace benefits such as a salary sacrifice car scheme is an easy way for a business to align its thinking with ambitious and talented people, and to demonstrate that it is a business ready to compete at a higher level.

Contact Pink Salary Exchange for support in introducing a salary sacrifice car scheme

If you think this sounds like your business, and you want to become a more attractive employer offering a better remuneration package to new or existing employees, then contact Pink Salary Exchange today and we can explain our next generation salary sacrifice car scheme and how it works.