Sustainability is the word on most people’s lips in 2023. With growing awareness of climate change and its effects, comes people wanting to make changes to ensure a better future.
Both Corporate Social Responsibility (CSR) and Environmental, Social, and Corporate Governance (ESG) should be considered key by businesses, as prospective employees, partnering companies, and investors care more than ever about sustainable work practices. In fact, My Staff Shop found that out of over 5000 people surveyed, 54% of them said that their company’s sustainability ethos is critical to their view of the organisation.
Air pollution and fossil fuel consumption are huge factors in the climate crisis, so finding future-proof transport is not only important, but with many countries pledging to ban the sale of fossil fuel powered vehicles, it will eventually become necessary. While public transport can reduce the number of vehicles on the road, and therefore the amount of air pollution, cars are a necessity for many people. Enter electric vehicles.
Electric Vehicles (EVs) seem to be everywhere now, with the number of battery-electric cars in the UK increasing nearly tenfold since 2019, according to Zapmap. People want EVs, but cost plays a large role in taking the plunge and going electric. Buying a new EV is an investment that isn’t realistic for everyone, so being offered alternative options could enable your employees to reduce their emissions, while saving money with the costs of running a vehicle.
Salary sacrifice. It’s a benefit that gets mentioned a lot but do people actually go for it? If employees are keen on switching to electric for sustainability and to stop shelling out money for expensive petrol, but can’t afford the outright costs of a new EV, it’s a fantastic alternative that provides staff with the opportunity to swap their petrol car for an EV. For many people it is the only way that they would be able to afford an electric car, so providing a salary sacrifice scheme can give your employees the chance to get one.
“Businesses can save 8.2 tonnes of carbon every year by joining the salary sacrifice scheme and a driver of a small hatchback can save circa £101 on an EV on Salary Sacrifice compared to an ICE equivalent per month,” states Tom Baker, a Partnerships Manager at Octopus EV.
So how does an electric car salary sacrifice work? Well, employees can opt to give up a portion of their salary to lease an electric car, saving money by reducing income tax and National Insurance. In addition to this, the cost of charging an EV is almost always cheaper than a petrol or diesel car. Employees save money, get a new car, and are reducing their carbon footprint. It’s a win-win, so why not help your employees to invest in the future?
Not only does an electric car salary sacrifice scheme provide a golden opportunity for your employees to get the car that they want, but adds to the amount of sustainable transport on the roads. Oh, and it’s a bonus to show that your company takes sustainability seriously!