When a business considers offering a salary sacrifice scheme it is primarily promoted as a sweetener for employees, and the benefits for the employee are plentiful. But of course implementing such a scheme needs to make business sense, and there are several elements of a well-run scheme which perfectly align with progressive and wholesome business strategies.
If a business plans to introduce a salary sacrifice scheme, we have highlighted here a number of features which can help with corporate targets and objectives, and also to grow the business in a progressive way.
Operational efficiencies
Every business wants to see improvements to its bottom line results, and with a salary sacrifice car scheme, for example, the business will make savings on national insurance payments, if it goes down the route of offering zero-emission vehicles. But leasing vehicles through the business also enables fleet managers to monitor costs much more closely. Because lease deals have annual mileage restrictions included in them, grey fleet needs to be managed accordingly. So route planning needs to improve, job planning needs to be more cost-effective, driver behaviour needs to be monitored and the business needs to choose the most suitable vehicles for certain jobs. This will help to streamline the fleet impact and should result in operations being more efficient and fuel costs reducing also. In more fundamental terms, of course, being able to offer such a scheme to employees may mean that a business which can’t afford to offer frequent or regular pay rises, can still maintain good morale and productivity by other means.
Climate impact
Of course everybody has an environmental responsibility and every business should have climate impact goals, but this is particularly the case where a salary sacrifice scheme can have a nett-zero effect on fleet management. By making the switch to electric vehicles through a salary sacrifice car scheme, a business immediately reduces its emissions and promotes a positive message to its employees, as well as complying with corporate environmental targets.
Human resources
A huge task for managers at every level of the organisation is attracting and retaining the best employees. A lot of this comes down to the culture of the organisation and how it is structured to reward and promote the most valuable employees. And while a salary sacrifice scheme is an attractive perk for employees, as a non-cash benefit it also promotes fairness and equality across the business. With a salary sacrifice car scheme, the business is able to be fully inclusive with vehicle accessibility. Company cars have traditionally been seen as a status symbol, and something that maybe only elite-level performers in a business are able to access. A salary sacrifice car scheme has to be open to everyone in the business, and while it is optional rather than obligatory, it gives everyone access to the same opportunity. In terms of motivating and engaging staff, this is crucial from a human resources point of view, and is an easy-win with respects to boosting morale and creating an inclusive, diverse and progressive culture and environment. This should be a primary goal for any business strategy, because the knock-on effects of that are plentiful.
Compliance
Salary sacrifice schemes help with compliance because they need to take careful consideration of tax and national insurance regulations and GDPR responsibilities. If you are introducing a salary sacrifice car scheme, the management portal will provide you with professional employee and vehicle records, and also a good system for managing fleet service and maintenance, MOTs, licensing and insurance. Ultimately, a salary sacrifice scheme can add professionalism and diligent data and personnel management to all levels of the business.
There are lots of ways a business can align its annual targets, objectives and strategies with the introduction of a salary sacrifice scheme. The car scheme offered by Pink Salary Exchange is HMRC-approved and benefits from 20-plus years’ experience in the industry, so you know it is a tried and trusted scheme which will help with all the strategy benefits outlined above. So get in touch today and we can have your business signed-up straight away via a simple online process.