Big business demand for salary sacrifice grows

A NEW survey of 250 managing directors, finance directors, and HR directors found that demand for salary sacrifice – the funding method of the moment – is sky high.

The BVRLA’s latest Leasing Outlook survey (October 2023) reported that salary sacrifice had grown a substantial 54.6% year-on-year – or more than than 55,000 cars.

This latest salary sacrifice report undertaken by The Electric Car Scheme – a partner company to Gateway2Lease – demonstrates that growth in the funding method is unlikely to diminish, with 83% of the 250 respondents saying they planned to implement salary sacrifice in the next year.

However, there remain a number of potential misconceptions which might roadblock uptake:

• 89% of directors believe it would cost them money to run an electric car scheme
• 90% believe there is significant risk to the company by having a scheme (if an employee leaves or is made redundant).

However, according to CEO and Co-Founder Thom Groot “this is a misconception”, adding that there is no direct cost to business to run an electric car scheme, and through The Electric Car Scheme, there is no risk to the company should an enrolled employee leave.

This perceived cost is key in the decisions of directors, said the report. When asked to rank the importance of four considerations when implementing an employee benefit, cost came out on top. This was followed by the benefit to the employee, the risk to the business and finally the effort it takes to set up.