Salary sacrifice vehicle schemes have surged in popularity in recent years - and for good reason. They have helped boost inclusion compared to traditional company cars (which were often only for senior employees or those who drove for work); they improve employee mobility and help employees and employers save money. Simultaneously, they support the shift to electric driving - helping organisations meet ESG goals and attract value-driven talent.
But as the schemes become more popular, a greater number of providers have popped up too. While having more options can be great, it can also feel daunting. Finding the right provider for your business isn’t just about offering cars, but also how they can reduce internal admin, improve the employee (and your) experience and reduce risk.
Here’s a checklist of priorities that will help you make the best decision for your organisation.
- Proven experience and scalability
Experience is important, but so is a proven ability to be able to scale and adapt to market and government changes, what businesses’ need and what employees need.
Look at how long potential providers have run their scheme, the number of vehicles they manage and the range of organisations they partner with. Providers who have a range of diverse and long-term, loyal clients are more likely to provide consistency and are often better equipped in understanding an organisation’s unique needs.
Also reflect on their package and how it has evolved. For example, do they have long standing relationships with manufacturers and service networks who can quickly resolve issues and reduce internal admin?
- Manufacturer access and vehicle availability
Provider’s access to vehicles, particularly EVs, is an extremely important factor to consider when choosing car benefits.
Providers with strong, reliable relationships with well-trusted manufacturers and car dealerships tend to have an elevated ability to secure competitive pricing, speedier deliveries and gain access to a broader selection of vehicles. This not only gives employees more choices regarding style and design, but helps to enhance inclusion. For example, providers like Tusker offer ‘pre-loved’ vehicles, which helps employees in lower pay-grades or who are trying to save money, to still have fair access to the scheme.
Relationships with the aftersales of manufacturers are also equally as important to minimise operational downtime if a vehicle needs a repair or maintenance.
It’s also vital to consider how comprehensive a providers’ overall package is. Tusker includes fully inclusive deals covering aspects like insurance, servicing, maintenance, and MOTs. This significantly reduces admin for both employees and employers, while giving drivers greater clarity over their expenses.
- Risk protection and policy design
Risk mitigation is crucial to salary sacrifice, particularly vehicle schemes.
Due to the increased scale of drivers in these arrangements compared to traditional company cars, it can increase the chance of experiencing termination events, like resignation or redundancy, which can create HR headaches without proper protection.
Many providers offer built-in protection, but cover varies significantly so it’s important to assess in detail. Tusker’s ‘Lifestyle Protection’ offers security for both employees and employers by allowing the return of vehicles without termination fees (typically after three months) in life events such as redundancy, resignation, long-term sickness, or parental leave. This significantly reduces the financial risk associated with the long-term commitment.
When assessing providers ensure you understand what events are covered, if there are limits to the number of cars that can be returned, where there are exclusions and how the policy is communicated, to ensure you and your employees are safeguarded from expensive fees.
- Integration with HR, payroll and benefit platforms
Integration is now more of an expectation when applied to salary sacrifice schemes.
Working with a provider that supports single sign-on (SSO) with internal platforms helps to make data integration smoother, reduce HR admin and make it easier for employees to access and understand their benefit options.
Good providers will have professionals that can support integration processes within numerous company teams, from HR to payroll, legal and IT.
This enhances the likelihood of a smooth, stress-free rollout which in turn will encourage greater engagement and uptake.
- Employee engagement and ongoing comms
Ongoing communications and educational content from providers is a must for scheme awareness and uptake.
It is important to be mindful of how provider communications have progressed, particularly how they have adapted their messaging around electric fleets. For example, how they treat issues important to employees like EV suitability, charging infrastructure and cost savings.
It is also vital to understand how they’ve scaled their comms strategies. Do their communications extend beyond the launch, helping employees and HR teams promote ongoing campaigns that enhance takeup, as well as providing educational resources that enhance employee clarity?
Clear guidance on areas such as Benefit-in-Kind (BiK) tax and range anxiety shows a provider goes beyond sales - they actively support employees in making informed and educated decisions.
Ongoing communications support, combined with continuous adaptation to the evolving needs of the workforce, helps reduce admin and drive engagement, while demonstrating that the provider has a strong understanding of the sector.
- Digital experience and self-service capability
Employees today expect an entirely digital experience when accessing benefits.
Providers should ensure that employees are able to:
- Compare continuously updated cars and prices
- Have a clear understanding of a salary sacrifice car’s impact on their pay and overall savings made
- Order and track their vehicle’s delivery online
- Manage servicing, maintenance, and contract changes
For employers, systems should also clearly reflect eligibility rules, policies and benefit structures.
This helps to provide greater clarity, and improve efficiency - supporting the employee and employer experience.
- Supporting ESG and net zero goals
Sustainability is now a crucial factor in HR decision-making. Regulations are changing, not least the 2030 ban of the sale of new petrol or diesel cars. Generally, investors and consumers are increasingly scrutinising company ethics; while employees, particularly younger generations, are choosing employers based on environmental values.
Finding providers who offer electric and hybrid schemes combats all these issues - helping reduce organisation-wide emissions while supporting the personal sustainability journey of employees.
For ESG purposes, it is also great to look for providers who support tracking of schemes, for example reports on emission reduction and offsetting. This enables businesses to clearly demonstrate their values while reinforcing their commitment to sustainability.
- Driver support and customer service
To ensure employees have a seamless experience, it is important to find a provider that provides ongoing support. This should include supportive, speedy responses throughout the employee journey - from choosing a vehicle to managing its contract. Look for a provider that offers:
- Multi-channel support (phone and digital)
- Expertise in EVs and salary sacrifice
- Are proactive with their support, responses so efficiently respond to issues.
- Also look at customer referrals, case studies and Trustpilot scores to show that their brand is highly credible.
High-quality support not only improves the employee experience, but encourages uptake and prevents additional burdens being placed on internal teams.
Interested in a vehicle scheme that delivers on all of the above? Visit Tusker.
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