Why predictable monthly costs are becoming one of the most valued employee benefits

By Cheryl Clements, Head of Business Development at Tusker

The current economy and job market is cemented in uncertainty and constant change, and as a result, financial stability has become a top concern for the majority of employees. According to recent research from Health Shield, 78% of employees are still worried about the cost of living crisis, which is a major problem for employers too, with 54% of employees citing that financial stress has impacted their ability to do their job. 

With so much lost productivity, and sickness absence hitting a fifteen-year high – increasingly attributed to mental health and financial anxiety – it is no surprise that more employees expect benefits that help them manage their money with confidence.

One great way for employers to support their workforce’s financial security is by increasing their access to more predictable monthly costs. When employees’ funds are already stretched, unexpected costs - like a tyre replacement or an insurance hike – can trigger significant stress, sometimes even from just worrying that they might happen. 

Simultaneously, the subscription economy has reshaped how we interact with our money, with everything from entertainment to food shopping becoming accessible through fixed monthly costs. As a result, more employees expect benefits to follow the same pattern - reliable, easy to manage and free from unexpected financial shocks.

The psychology of predictable costs

From a behavioural perspective, uncertainty is one of the biggest causes of financial anxiety. When we have less control over our expenses, budgeting becomes more stressful and long-term planning can feel daunting.

Here are a few reasons why:

• At their core, most humans are risk averse. This means they find comfort in routine. Unpredictable outcomes can lead to anxiety, which may result in irrational decisions based on emotion rather than logic, which can worsen finances.
• Establishing predictable costs helps build consistent financial habits and reduces the cognitive load associated with money management, allowing people to keep their energy for other priorities.
• People often forget or avoid infrequent, large purchases - like car repairs or annual bills. This results in last minute stress to find the money. Treating these costs as more frequent, smaller bills, ensures people aren’t caught off guard. In turn, this reduces employees relying on alternatives like short-term borrowing, which may collect interest and increase their overall financial stress.
• More awareness of outgoings allows for better financial planning, boosting perceived control, as well as confidence of finances and long-term goals.

Subscription-style benefits and why Tusker fits perfectly into your employee package

For all the same psychological reasons above, subscription services have exploded, becoming the norm in how we navigate our expenses. Therefore, integrating how employees negotiate costs outside of work should be replicated in their employee benefits.

Salary sacrifice aligns naturally with this new way of thinking, particularly when it comes to all-inclusive car schemes, like Tusker’s. With Tusker, employees pay a fixed monthly amount taken from their gross salary before tax and National Insurance are applied - producing significant savings, whilst also making the cost of running a car more predictable.

The fixed monthly amount also includes:

• Insurance
• Road tax
• Servicing and MOT 
• Maintenance and repairs
• Breakdown cover

There are no deposit or unexpected costs, just one straightforward, consistent monthly bill, with only fuel or charging to pay on top. By including elements such as servicing and insurance, you not only make vehicle costs more predictable, but also simplify things for employees by bringing their contracts together and reducing the stress of dealing with different contractors. This reflects the subscription model employees increasingly adopt in their personal lives, making it intuitive, accessible and stress-free.

For many employees, it also makes new vehicles, particularly electric ones, more accessible and affordable than they are on the high street, whilst also avoiding many of the unpredictable financial risks normally associated with a new car.

Other predictable-cost benefits you can offer

While vehicle schemes often deliver the greatest, structured impact - saving employees from extremely high unexpected costs, grouping together multiple contracts and even providing significant cash savings - they’re part of a wider trend towards predictable-cost benefits. Other examples include:

• Technology salary sacrifice - Employees access laptops, smartphones or home office equipment through a fixed monthly reduction. This avoids large one-off purchases, helping to facilitate predictable household budgeting
• Cycle to work schemes - Consistent salary sacrifice payments for bikes and safety equipment, that also come with tax and National Insurance advantages
• Childcare vouchers - Predictable monthly contributions that help parents manage childcare costs, alleviating budgeting anxiety
• Health and wellbeing subscriptions - Gym memberships and wellbeing apps which align with subscription-based finances, whilst helping improve overall physical and mental health

Why employers gain as much as employees

Cost-certainty benefits don’t just support your workforce, they provide a range of benefits for employers too. These include:

• Higher productivity rates - Financial anxiety is a large contributor to poor productivity and burnout in the workplace. Reducing the burden of this stress, as well as the anxiety that comes with budgeting and financial planning, helps keep employees focused and engaged.
• Stronger employer brand - Businesses that offer benefits that align with employee struggles and needs demonstrate genuine empathy, as result, they often evoke stronger loyalty from their workforce, increasing attraction and retention.
• Support ESG goals - Schemes like Tusker’s help employers improve their carbon footprint with reduced emission commuting thanks to carbon offsetting.
• Cost-efficiency - Salary sacrifice models generate employer NI savings, making predictable, high-value benefits financially beneficial to businesses too.

Predictability - the new foundation of modern benefit packages

As the cost of living continues to trouble most employees, they increasingly expect perks that support their financial wellbeing. Structured monthly costs, like vehicle schemes and gym subscriptions, provide greater stability and certainty, helping them stress less about their personal life and focus more on their work.

Interested in how you can innovate your benefits with a car scheme that simplifies and structures employee finances, while helping everyone save significant costs? Tusker’s all-inclusive salary sacrifice solution makes predictable, stress-free and sustainable mobility accessible for every workforce.