03 Aug 2026

Employers back EV salary sacrifice to support talent attraction and retention

Electric vehicle salary sacrifice schemes are becoming an increasingly powerful tool for employers looking to strengthen employee retention.

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The latest Tusker survey shows strong momentum behind electric vehicle salary sacrifice schemes (EVSSS) with more than a third (34%) of UK employers offering one and a further 19% considering introducing one within the next two years.

Nearly half (48%) of employers say that introducing an EVSSS has helped them attract and retain talent, underscoring how these schemes are evolving beyond a traditional transport benefit into a strategic tool for employers navigating a highly competitive labour market.

Growing impact of scheme

This growing impact is reflected in employee and candidate attitudes. Last year, Tusker’s EV Driver Survey 2025 found that 27% of employees with an EV said having access to a salary sacrifice scheme made them more likely to stay with their current employer. The appeal was also applicable to jobseekers, with 60% saying the availability of a salary sacrifice car scheme would influence their decision to join a company.

This growing impact on attraction and retention is mirrored in employer perceptions, with Tusker’s 2026 research showing that EVSSS are increasingly viewed by organisations as a premium workplace benefit. More than a quarter (26%) of employers with a scheme in place rank it among their top two employee benefits, while half (50%) say it sits within their top three perks.

Concerns around implementation appear to be diminishing, with nearly three quarters (71%) of employers saying the process of adopting electric vehicles for employees is simple.

Strategic tool

“Employers increasingly see EV salary sacrifice schemes as a strategic tool that supports crucial business priorities of attracting and retaining talent, whilst delivering meaningful financial value for employees,” said Kit Wisdom, managing director at Tusker.

“Companies face multiple challenges of trying to manage rising costs while also improving employee satisfaction. EV salary sacrifice schemes are increasingly seen as a practical and reliable option in response. It’s particularly positive that businesses no longer see electric vehicles as something for the future - now they are a normal and accessible employee benefit that many companies are able to offer.”

Tusker’s survey also highlights financial benefits for employers. More than half (52%) say employer National Insurance savings are a key reason for implementing the scheme, with 43% reinvesting those savings into additional employee benefits or wider organisational initiatives.

Employers identified a range of motivations for implementing EV salary sacrifice schemes. These include enabling employee savings (32%), providing an affordable route into electric driving (23%), meeting employee demand (13%) and generating employer NI savings (10%).

The employee value proposition is equally significant. Nearly three-quarters (72%) of employers say EVSSS provide an affordable way for employees to drive electric vehicles, while 61% say the schemes help employees make meaningful financial savings.

Read the latest report from Tusker here.

Supplied by REBA Associate Member, Tusker

Tusker is the UK’s leader in salary sacrifice cars. Part of Lloyds Banking Group, it has more than 15 years’ experience in offering an affordable way for employees to drive a new, fully insured, and maintained car. Its scheme, which is available to over 1.8 million UK employees, offers a range of options, from pure electric cars to hybrids and even traditional petrol and diesel vehicles. It provides a tailored scheme for organisations’ individual needs.

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