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The benefits of offering electric cars as a job perk

The switch away from fossil fuels is a necessity for the sake of the environment. One of the main ways this can be achieved is by increasing the number of electric cars on our roads. However, as we discuss here, there are more than environmental benefits to offering electric cars as a job perk. From improved brand image for the employer to financial incentives for employees, offering electric cars is a practical and forward-thinking move that can significantly optimise the employee experience and – importantly – contribute to a sustainable future.

The switch away from fossil fuels is a necessity for the sake of the environment. One of the main ways this can be achieved is by increasing the number of electric cars on our roads. However, as we discuss here, there are more than environmental benefits to offering electric cars as a job perk.

From improved brand image for the employer to financial incentives for employees, offering electric cars is a practical and forward-thinking move that can significantly optimise the employee experience and – importantly – contribute to a sustainable future.

Environmental Benefits of Offering Electric Cars as a Job Perk

From a non-business point of view, the environmental benefit of electric cars is the most substantial advantage. By encouraging employees to drive electric vehicles (EVs), companies can play a crucial role in reducing harmful emissions and promoting cleaner air.

The move to EVs as a job perk also helps with corporate social responsibility (CSR) goals along with environmental, social, and governance (ESG) targets and boosts brand image with a public statement of a company’s green credentials.

The main environmental benefits include:

  •       Reduction in carbon footprint: Electric cars produce zero tailpipe emissions, significantly lowering greenhouse gas emissions compared to petrol or diesel vehicles.
  •       Decreased air pollution: With fewer pollutants being released, urban areas can enjoy better air quality, contributing to public health improvements.
  •       Support for renewable energy: Many EV owners opt to charge their cars using renewable energy sources, further reducing the reliance on fossil fuels.
  •       Alignment with CSR goals: Offering EVs supports a company’s commitment to sustainability and responsible business practices, appealing to eco-conscious stakeholders.
  •       Reducing Scope 3 emissions: Companies are being increasingly scrutinised for their emissions output, one area of which is Scope 3. Businesses that introduce electric cars across their fleet, dramatically reduce their Scope 3 emissions output.

If environmental benefits were the only advantage of offering electric cars it would still be a worthwhile exercise. However, as we explore next, the benefits go far beyond helping the planet.

Financial Incentives of Electric Cars for Employees and Employers

While EVs are becoming increasingly popular, many motorists still aren’t aware of the benefits of choosing an electric car over their fossil-fuelled counterparts. Not least of all, are the financial incentives.

Financial incentives for offering electric cars as a job perk include:

  •       Cost savings for employees: Employees can save 30-60% on the cost of an electric car through salary sacrifice schemes. The monthly cost is deducted before tax, leading to substantial savings on Income Tax and National Insurance.
  •       Comprehensive monthly package: Employees benefit from an all-inclusive monthly payment that covers insurance, maintenance, tyres, and breakdown cover, with no deposit required.
  •       Tax benefits and incentives: Both employees and employers can take advantage of government incentives and tax benefits for electric cars. These include lower Benefit-in-Kind (BIK) tax rates for employees and potential grants or subsidies for employers and other benefits through Tesla novated leasing.
  •       Reduced operating costs: Electric cars typically have lower running costs compared to traditional petrol or diesel vehicles. This includes savings on fuel, as electricity is generally cheaper, and reduced maintenance costs due to fewer moving parts.

By incorporating electric cars into their benefits package, companies can offer employees a financially advantageous perk that also supports broader financial and environmental goals.

Employee Satisfaction and Retention

Attracting and retaining talent is a continual headache for employers. This has always been the case to one degree or another, but the challenge has been even more prominent since the “great resignation” that occurred during the COVID-19 pandemic.

While electric cars are not a magic bullet that will instantly solve this, they are an extra incentive that can make a significant difference in attracting and retaining employees.

Here are a few of the ways this can work in practice:

  •       Improved employee morale: Providing electric cars demonstrates a company’s commitment to employee well-being and environmental responsibility, leading to higher job satisfaction.
  •       Appeal to younger employees: Younger, environmentally conscious employees are particularly attracted to companies that prioritise sustainability. Offering electric cars or, even better, a used EV can help attract and retain this demographic, as many of them genuinely love electric cars for their environmental benefits and innovative technologies.
  •       Enhanced loyalty: Unique and valuable perks like electric cars can increase employee loyalty, reducing turnover rates and create a more committed and engaged workforce.
  •       Positive workplace culture: Implementing such forward-thinking perks like electric cars, flexible working or coworking passes if completely remote, and health insurance perks etc, contributes to a positive workplace culture, where employees feel valued and motivated.

By offering electric cars, companies can enhance their appeal to current and prospective employees, leading to improved retention and a more engaged workforce.

Enhanced Company Image

Consumers and potential customers are increasingly choosing who to do business with based on the strength of their environmental stance. Electric cars are a public statement of a company’s commitment to sustainability and innovation:

  •       Boosted reputation: Companies that offer electric cars are seen as forward-thinking and environmentally responsible, appealing to customers and investors.
  •       Competitive edge: Businesses that provide unique perks stand out in the job market, attracting top talent.
  •       Client appeal: Clients and partners are more likely to engage with companies that prioritise sustainability, and enhancing business opportunities.

Incorporating electric cars into employee benefits strengthens a company’s brand and underscores its dedication to sustainable practices.

Sustainability in Motion: The Case for Electric Cars

So to conclude, are there serious benefits to offering electric cars as a job perk? Well, the switch to electric cars is definitely gathering momentum. However, there are distinct challenges to address as we make the transition. Offering electric cars as a job perk not only helps overcome these challenges but also brings significant environmental, financial, and employee satisfaction benefits. It’s important to assess your financial position before investing in new vehicles for your company, though. 

By adopting this forward-thinking incentive, companies can enhance their sustainability efforts, attract top talent, and position themselves as leaders in corporate responsibility.                                                   

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