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Fewer workers will get company cars due to working from home, while more will be given electric vehicles

Having relaunched its EV salary sacrifice scheme in December 2021 and made it available to the entire company, rather than a ring fenced population of employees, Ian Davis, head of payroll at Direct Line explained how it boosted its ESG agenda.

The environmental, social and governance (ESG) benefits of an electric vehicle (EV) scheme are apparent, but what would introducing one during the current economic climate mean for employees? Elizabeth Howlett asks the experts.

Pre-pandemic, benefits surrounding company cars was an emotive subject reward professionals approached with caution. Long considered a status symbol and a way to lure talent into the fold, the company car has been a widely popular benefit and as ubiquitous as free fruit or Friday drinks. 

The move towards electric vehicles (EVs) has steadily been gaining momentum but, with recent events around panic buying fuel, and a heightened spotlight on climate change, more people and businesses will undoubtedly be drawn to this alternative.

Balancing the need to provide good quality benefits with the cost of provision is a challenge for almost all companies in the UK today.

Many companies are reconsidering the basis of their company car selection policy and moving away from basic or effective rental costs toward Total Cost of Ownership (TCO) or Wholelife costs. TCO means the true cost of the vehicle is calculated using a number of factors in addition to the vehicle’s rental price.