Employee Benefits are no longer a perk, but a priority

As the employment market has become increasingly competitive, employee benefits are no longer a ‘nice to have’ but essential. With jobseekers placing greater emphasis on total reward packages, organisations have had to significantly alter their recruitment processes and offerings. Candidates no longer just compare salary when choosing a new role, they also analyse the full range of benefits on offer and how they correlate with their needs, lifestyle, and values.

In recent years, particularly following the pandemic, changing workforce demographics, and shifting workplace expectations, businesses have had to reflect on their benefit strategies. The focus has shifted away from generic rewards to a more tailored, flexible approach that can support the diverse needs of employees.

The rise of meaningful, money-saving benefits

One growing ‘must have’ within benefits packages is a range of salary sacrifice schemes that are both cost-effective and highly valued by talent. Examples include:

• Car benefit schemes, that include electric and hybrid vehicles
• Cycle to work schemes
• Car parking solutions
• Annual leave purchase options
• Technology schemes (laptops, smartphones, tablets)
• Childcare vouchers

These are offered alongside more traditional, lifestyle focused benefits, including:

• Employee assistance programmes (EAPs)
• Retail and leisure discounts
• Travel savings
• Cashback offers
• Health and wellbeing memberships
• Recognition and reward programmes

Research highlights that 65% of candidates consider employee benefits when considering job offers, while 80% of employees are more likely to stay with a company that offers well-structured benefits packages. These statistics highlight the need for organisations to act now to attract and retain staff, especially as market competition continues to change.

Why salary sacrifice car schemes are surging

Salary sacrifice schemes, especially for electric vehicles, are one of the fastest growing employee benefits. YouGov research indicates that over 74% of the workforce would like an EV salary sacrifice scheme at their workplace. The appeal of these schemes to talent is evidently receiving recognition from many employers, with overall fleet numbers for salary sacrifice vehicles rocketing by 63% year on year. As a result, over 80,000 UK employees are now driving electric cars via these schemes, many of whom were unable to afford or access them before.

One reason for this surge is the cost savings associated with salary sacrifice car schemes. On average, drivers on Tusker’s salary sacrifice scheme saved more than £320 a month in 2023. Not only are these drivers reporting £1000 saved on fuel per year with electric vehicle options, but the schemes also reduce monthly tax and National Insurance by being paid for through salary reductions. They are also helping employees to budget more efficiently – there are no financial surprises; as the monthly cost typically includes insurance, servicing, maintenance, replacement tyres and breakdown cover, at fixed rates to protect from price rises.

As a further bonus to the financials, these schemes support wider employer and employee ESG goals by making lower-emission vehicles more accessible. For example, Tusker has successfully moved car orders from 17% electric in 2019, to 80% electric by 2024. Some studies have suggested that electric vehicles emit 17% to 30% less carbon dioxide than petrol cars over their lifetime, massively enhancing organisational sustainability with every employee who switches to electric.

Easy to set up, strategic to offer

Despite common misconceptions, with the right providers most benefits are quick to implement and require low administration. Whether rolling out a full suite or a single scheme, providers have streamlined onboarding, automation, and daily support, making adoption easy, even for small HR teams.

Additionally, many benefits like salary sacrifice car schemes, provide employers with NIC savings, helping them to offset setup and platform costs. Therefore, they are not only easy to adopt but also cost-effective for employers.

Ultimately, the key to a great benefits strategy is to select options that align with employee priorities, strengthen their financial health beyond pay, and deliver strong ROI. When done correctly, benefits become a strategic asset, not a resource drain.