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Company cars have become part and parcel of business life in recent years, with more and more organisations offering them to employees as part of their benefits package. A company car reaps several benefits, such as access to transportation and low-cost advertising and branding.
If you’re looking to keep hold of top talent, boost your business’s reputation, and ensure staff have a safe mode of transport to get to and from the office, here are some further benefits of why company cars are vital for employees, as well as ways to introduce them into your business operation.
Why company cars are so important to employees?
Convenience and Comfort
A primary reason why employees value company cars is simple – their convenience and comfort. With a company car, staff don’t have to worry any longer about the hassle and expense of maintaining their own vehicle. What’s more, they can enjoy the luxury of a newer car model that comes equipped with the latest features. This can make the rush hour commute that little bit more bearable, comfortable, and enjoyable. If you’re focused on comfort in particular, it’s wise to offer newer company cars, rather than provide an old banger!
Company cars can also provide substantial financial benefits for staff. If you provide a company car for employees, this can help them save money on the purchase, repair, and maintenance of their own vehicles. You’re bound to have some team members who live on a tight budget. By offering a company car, this can be a huge weight off their shoulders. For staff who have to travel long distances to and from work, providing a company car could be a lifesaver.
As a business owner, it’s vital you take your employee’s safety seriously. Safety is another crucial aspect to consider when it comes to company cars. You can make sure your team have access to a safe and reliable vehicle that’s equipped with the latest safety features. Doing so helps in lowering the risk of accidents and injuries, giving staff greater peace of mind. This is another reason why it’s better to shell out on newer company car models, rather than ones that haven’t got top-of-the-range safety features included.
Attracting and Keeping Top Talent
If you were to ask any business head what they require most out of their venture, it’s hard-working employees who share the same values as them. This can be achieved. However, you’re going to need to offer incentives like a company car to get the best talent flocking to your brand. Regardless of what sector you’re in, every business is vying for the same pool of skilled workers. To stand out from the rest, offering a competitive benefits package is essential.
Speaking of benefits, you could introduce company cars into the business via a salary sacrifice scheme. Pink Salary Exchange have a salary sacrifice car scheme you can take advantage of. They have an array of new electric vehicles employees can lease. Employees simply give up a portion of their gross salary. In return, they’re able to lease an EV that can be used as a company car.
Boost Brand Image and Reputation
Company cars are brilliant for enhancing a business’s brand image and reputation. Provided you’ve got a well-maintained fleet of company cars, this can convey a sense of professionalism and attention to detail. When clients rock up to your premises for an important meeting, they’re sure to be impressed if they spot a string of fancy-looking cars in the car park!
Employees who have access to a company car can help them achieve a better work-life balance. Some staff may be unable to afford a car of their own, meaning they have to rely on public transport to get to work. If you’ve ever been on a crowded rush hour bus or train, you will understand it’s not the greatest way to kick the day off! Should you offer a company car, employees won’t have to worry about being sandwiched in with other commuters. Instead, they’ll have their own space in the car which can increase productivity and job satisfaction – a win-win!
Offering a company car to employees can provide numerous tax benefits, both for you and staff. In many cases, you can claim tax credits or deductions for the cost of buying and maintaining company cars. Staff may also benefit from reduced tax liability for using a company car for business purposes. This means you won’t have to worry about forking out for the entire cost of the vehicles.
As we’ve discussed, there are clear reasons why company cars are so beneficial for employees across the board. Implementing company cars into your business can do wonders for enhancing your image, improving employee retention and satisfaction, and contributing toward your overall success.