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10 May 2024

How electric car salary sacrifice could drive company culture

With environmental issues in the spotlight, offering electric vehicles is a great way for businesses to improve their ESG profile

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Understanding what drives today’s candidates and employees is essential to help build business success.

As people take an ever-greater interest in the values of who they work for, an electric car salary sacrifice scheme could hold the key.

The UK has a skills shortage. According to the UK Government’s own Office for National Statistics, in December 2023, there were an estimated nearly one million job vacancies (934,000), creating a highly competitive market for the best talent.

That’s why understanding what motivates employees has never been more important.

Personal values

In the same way consumers increasingly favour businesses that are committed to environmental responsibility, candidates and employees do too.

They take an active interest in a business’s environmental, social, governance strategies (ESG) and will support and engage any that align with their own values.

In a recent survey by a leading UK research organisation, 6,000 UK office workers, students, apprentices and recent graduates were asked about their attitudes to work.

A significant 82% placed some importance on being able to link values and purpose with the organisation they work with.

Meanwhile, 46% said they’d want their employer to demonstrate a commitment to ESG.

One in five said they have turned down a job when the company’s environmental stance did not meet their own.

By offering an electric car salary sacrifice scheme, companies can showcase their commitment to reducing carbon emissions and promoting a greener future. In turn, it creates a positive employer brand image.

Energising ESG commitments

Implementing an electric car salary sacrifice scheme doesn’t just help to attract and retain top talent. It also goes a long way to promoting a sustainable corporate culture, helping companies meet their ESG targets.

Electric vehicles are a key part of sustainable transportation, as they produce zero exhaust emissions and have a significantly lower carbon footprint compared with traditional petrol or diesel vehicles.

A defined ESG framework, supported by an electric car salary sacrifice scheme, provides a clear direction for companies to do business in a way that is consistent and aligned with their values and employee expectations.

How an electric car salary sacrifice scheme helps

  • Mutually beneficial - an electric car salary sacrifice scheme is a mutually beneficial arrangement designed to encourage the adoption of electric vehicles by employees.
  • Wellbeing benefit – the scheme is provided to eligible employees as a wellbeing benefit.
  • Tax and NI savings – employees exchange part of their gross salary before tax and NI in return for an electric car, which is leased by their employer.
  • Specialist partner – employers typically partner with an electric car salary sacrifice specialist to set up and manage the scheme.
  • All in one - the lease agreement usually covers the cost of the vehicle and the maintenance. Insurance and home chargers are often offered too.

Boost your ESG score

As Guy Spence, MD of electric car salary sacrifice specialist Electrix, explains: “An electric car salary sacrifice scheme can help companies boost their ESG score while helping to attract and retain today’s brightest talent. It’s a real win-win.”

In partnership with ElectriX

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