Reward Live will examine the appeal of salary sacrifice car schemes and how they can be set up
Salary sacrifice has been the reward sector’s runaway success story. By enabling employees to sacrifice part of their official salary to the value of the perk they spend with it, not only do employees pay less NI and income tax, but employers pay less NI too; it’s a genuinely win-win result all-round.
Nowhere has this been more dramatic than with salary sacrifice for cars. Between 2012-13, provider Zenith saw its salary sacrifice fleet grow by 70%, and according to consultant OC&C, car salary sacrifice is predicted to account for 10% of all new car sales in the UK by 2025.
Why? Salary sacrifice appeals to staff because it opens up the prospect of being able to get a new car, even if they wouldn’t ordinarily qualify for a company car. SMEs can benefit by being seen as offering staff the ability to access a perk that might otherwise have been unavailable through a traditional fleet car company car scheme.
Setting a scheme up properly can give employees savings of around 30% compared to leasing a car direct, so in this opening session at Reward Live, Guy Roberts, director SG Fleet, outlines his views on the growth potential of this benefit, the value gives staff, and the retention levels it can create.
Roberts will give delegates the benefit of this experience by explaining how to set up a great car salary sacrifice scheme, including how it is as much about communicating this benefit as it is the choices of cars on offer.
He’ll reveal the best tricks for making the salary sacrifice cars the star of your benefits offering, and will also reveal how firms can grow their CSR credentials by offering high mpg, low emission options – a move which will also maximise the savings employees can make.
But he’ll also talk about how salary sacrifice is breathing new life into a hitherto static car market. With the upfront cost of a brand new car out of reach for most people, Roberts will detail how car salary sacrifice allows regular employees to walk off forecourts with a motor they might not ordinarily be able to buy. This could have an impact on how your scheme is run. In the first quarter of 2015, for instance, the most popular models were the Nissan Juke, followed by the Audi A3 – suggesting employees using salary sacrifice prefer to use the perk to treat themselves with better-than-basic cars.
That’s why you can’t afford to miss this session. It will show you how you can successfully create engagement you can only dream off, by letting staff buy a car they could only have dreamed of too.
Where: Edgbaston Cricket Ground
When: Wednesday 13 May
For more information: http://www.rewardlive.co.uk/rwl15/wp-content/uploads/2015/03/RL-Programme-2015.pdf