Reward employees and boost employee motivation with company car

Date: 24/11/2010

Employers developing staff benefit schemes should consider company cars, according to new research.

A study by Lex Autolease found that nearly 80 per cent of staff would take up a salary sacrifice car if they had to replace a privately owned one.

And 71 per cent would be keen if tax benefits showed a £50 improvement than private leasing, reports Employee Benefits.

Claudia Rose, corporate sales director at Lex Autolease, told the publication: "There is a significant pent-up demand in the grey fleet sector for employee benefits like company cars, particularly if they offer tax breaks in a hassle-free, payroll-based package like salary sacrifice."

Salary sacrifices arrangements offer staff employer tax breaks by giving up part of their salary. Common schemes include childcare vouchers, car parking spaces, bike loans and mobile phones, but can also cover health screening and food vouchers.

This follows other reward and recognition advice from expert Peter Reilly from the Institute for Employment Studies, who said that employee benefits should be tailored to individual staff.

Posted by David Farrior 

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