Salary sacrifice: the experience of fleet decision-makers

Guidance - and areas of annoyance - from fleet decision-makers on salary sacrifice schemes were shared at the May meeting of the Fleet200 Strategy Network.

Here are key points in the discussion:

Three schemes cited around the table have not had huge take up in the first 12 months of launching their scheme. All had between 500-1,200 employees with nine-11 vehicles ordered within the first 12 months.

Main comments on underperformance were due to affordability – 20% taxpayers close to minimum wage can’t access any vehicles.

It's important to share 100% NI with the employees; this should be an employee benefit and not for the company to profit from it. Take up in the company where this is the case is at 5.5% take up across their schemes.

Frustration expressed that one salary sacrifice provider only offers a ring fenced number of vehicles depending on what stock vehicles they have available.

Age restrictions on insurance depending on the insurance group of vehicles is a concern. It is essential to only show employees what they can afford and vehicles they can have insurance on, rather than the entire list of vehicles available to all staff.

Include the charge point into the driver rentals. It acts as an important enabler of EV transition.

Sal sac should be marketed to grey fleet/cash takers to incentivise them out of their petrol/diesel private cars.

Sal sac providers do the bare minimum to market the schemes. Whilst myth buster documents seem common, there was no additional support such as roadshows, webinars, videos, to help employees understand the benefits and to try and simplify sal sac as a product.

Video: hear why fleet decision-makers value the Fleet200 Strategy Network (find out more and apply to join below)