Just over half (51%) of employer respondents who offer a car salary sacrifice scheme to staff provide the benefit to raise employee morale, according to research by finance organisation Maxxia.
Its HR views on salary sacrifice car schemes report, which surveyed 100 HR professionals in UK-based organisations with at least 250 employees, also found that 49% of respondents who include a car salary sacrifice scheme in their employee benefits package do so to attract new talent to the business.
The research also found:
- 56% of respondents introduce car salary sacrifice schemes to provide a valuable benefit to staff.
- 47% of respondents believe car salary sacrifice schemes encourage the use of safer, greener cars.
- 61% of respondents who have a car salary sacrifice scheme in place do so to offer safer cars to employees, and 53% do so to encourage the use of greener cars.
- 67% of respondents who do not currently offer a car salary sacrifice scheme to employees are considering introducing one in the near future.
- 96% of respondents are familiar with car salary sacrifice schemes, and 82% of respondents fully or partially understand them.
- 37% of respondents think that early termination charges are incurred by the employer, and 35% believe these would be covered by an associated insurance policy.
- 71% of respondents would like employees to keep their car if they leave before their scheme reaches its full term, and 29% believe this is possible.
Gordon-Calder Jones, business development director at Maxxia, said: “What this report really shows us is that there is a problem of clarity in this sector. The majority of HR decision makers believe the schemes are a valuable benefit, yet not all are implementing them due to misconceptions about perceived risk and hassle.
“By reviewing the latest schemes in the market, HR staff would be aware that it is possible to enjoy all of the benefits that salary sacrifice car schemes have to offer with none of the risks or hassles normally attached.”