Yorkshire Building Society prefers cash over cars

Case Study: Yorkshire Building Society

Build in reduced admin Yorkshire Building Society has had a cash allowance scheme in place since 1998.

Mary Blackwell, supplies manager at the organisation, believes the reduction in admin is the key advantage of the scheme. “It certainly is easier to administer, we obviously have more to do when we have to organise a vehicle for employees,” she admits.

Blackwell expects the number of cash allowances to increase over the next few years because more employees want the flexibility and choice that such schemes offer. However, although this means less administration for the fleet department, the rising number of employees taking cash allowances will mean more of a focus on health and safety.

“We won’t lose any responsibility, it will simply mean that more attention will be given to those employees taking the cash allowance. Duty of care is important and we will be working more closely to ensure all cars purchased outside the company are fit for their purpose,” she says.

The amount of cash permitted to each employee for their vehicle is calculated by the human resources department. It bands employees together and aims to keep the allocated sums in line with its competitors.

The human resources department is also keen on the cash allowance scheme, because it makes the organisation more competitive and attractive during the recruitment process. “Cash allowance makes for a more flexible and competitive benefit, which is important to human resources at the recruitment stage,” Blackwell adds.