Managing your employee uptake of greener cars

Managing your employee uptake of greener cars

Now more than ever, electric vehicles (EVs) are becoming a mainstay of company car and car benefits schemes. No longer a novel choice, the many advantages of EVs meaning that they are now the preferred choice of car for many company car policies. Being cheaper to run, highly tax efficient and better for your organisation’s carbon footprint, for 99% of drivers, going electric is the perfect choice*

With 2035 now fast approaching, you have probably already begun to think about how you will transition your fleet to EV. If so, a question that will no doubt have cropped up is how to manage and set up your car offering to encourage EV adoption?

We look at two approaches below which could help you decide on the appropriate level of car choice governance for your organisation.

*For drivers for whom even a long-range EV would still not be appropriate, Tusker offer a wide range of low-emission hybrid, petrol and diesel cars too, all of which are fully carbon neutral.

1. Setting limits on vehicle carbon emissions

Since 2019, company car tax rates are heavily in favour of greener cars (and especially pure electric models, which are capped at just 2% until 2028). So there’s no doubt restricting the choice to cars with lower emissions is good for your company and your employees’ bottom line.

Opting for this approach certainly won’t limit the attractiveness of your car benefit if you set the emission’s cap correctly. The best way to do this is to understand your employees’ needs in terms of their typical journeys. You could run a range of employer NI saving scenarios produced by different caps, while looking at what the whole life cost comparisons of the cars could be.

Don’t go too low. For example by only allowing employees to drive 0g/km CO2 electric cars this could risk limiting the scheme’s appeal to employees who are ready to drive electric. Reducing the appeal to employees who would find it too logistically challenging to drive a pure electric car.

Fortunately, working with an experienced car benefit provider like Tusker will help you understand how best to curate a car list that will deliver the right balance. Offering an appealing employee benefit while grasping the carbon and cost-saving opportunity on hand.

Each organisation must determine the right way for it to introduce ULEVs into its fleet; there’s no set formula. We help our customers to understand that each organisation will have different needs.

Each organisation must determine the right way for it to introduce Ultra-Low Emission Vehicles (ULEVs) into its fleet; there’s no set formula, although there are some good templates.

2. Free car choice and no cap on carbon emissions

You can offer a free choice of cars to your employees by removing the CO2 cap on vehicles.

Whilst you may be worried that this might negatively impact your carbon footprint, Tusker offsets tailpipe emissions for every car across our whole vehicle range, so you can enjoy the best of both worlds. By choosing a car benefit provider that only provides carbon neutral vehicles, your employees get a wider choice of cars while your organisation benefits from reducing its overall emissions.

It’s likely that the majority of employees will choose lower emissions vehicles as a matter of course, in order to benefit from the lower company car tax (Benefit in Kind) that they will enjoy.

If offering a wider selection of cars to your staff, making green cars attractive can be a simple matter of education. As an employer, you’re no doubt already well aware of all the benefits electric cars bring, including low carbon emissions, cleaner air, big tax savings and lower running costs. Making sure that your employees know this too couldn’t be easier, with some clear and informative communications.

Tusker has two decades of experience in helping businesses to educate their employees on the ease and benefits of swapping to an EV in place of a petrol or diesel. So why not let us help you to get this message across effectively.

Making the right choice for your organisation

Whether you decide to give people free reign or limit choice, there’s plenty you can do to influence your employees’ car selections. From inspiring and educational communications to providing cost-saving comparisons, simple nudges can be very effective in helping drivers to make a choice that is right for them, your organisation and the planet.

Every organisation must determine the right way for it to introduce Ultra-Low Emission Vehicles (ULEVs) into its fleet for itself. While there’s no set formula, we have ample experience in helping our customers to understand that each organisation will have different needs, which will depend on a number of factors including:

• the location of your business.
• the commuting and business journey profiles of your employees.
• the existing make-up of your fleet.
• the number of employees not eligible for a company car.
• the length of time left on your existing leases; and
• whether employees have dedicated off road parking for the installation of a home charging point.

If you haven’t yet considered a green car policy, then we hope the information above has highlighted a few ways in which you can introduce them. And, if you plan your transition to electric cars in a way, and at a pace, that suits your needs – success and cost savings should be guaranteed.