Low uptake on your electric vehicle salary sacrifice scheme ?

Why EV salary sacrifice schemes can stall and how to spark positive employee action

If you've launched an EV salary sacrifice scheme and uptake hasn't lived to expectations - here's what to do next. 

If employee response to your EV Salary Sacrifice scheme so far has been somewhat underwhelming you're not alone - it happens more often than you might think. 

Uptake doesn't always follow intent and whilst interest might be there the leap for employees to take action might need a little nudge, assistance and consistency to help it go from lukewarm engagement to meaningful results. 

The first step is to look at where things might be stalling - giving you valuable insight and ideas in to how to unlock your salary sacrifice scheme's full potential. 

Awareness isn't the same as understanding: 

A poster in the staff area or cafe, or a broadcast launch email is rarely enough - it might resonate with the individual who was about to buy and ready to jump but for others it may be just a matter of timing, or the need for more information on what it is ... how it works... if they're eligible and how they can access the vehicles available. Worse still some may confuse it with the company car scheme and assume it is only for senior staff or field personnel. 

Solution: 

Make education part of the launch and follow-up with a simple guide, internal Q&A session or even a short explainer video. Make it relevant to all eligible employees in the business, visually enticing and jargon free - and keep the communications and information flowing. 

Your salary sacrifice provider should be able to provide you with simple assets and materials to assist with employee awareness 

Is there too much choice - or not enough ? 

There is rarely too much choice - more often it is a case of it not being clear how and where to find it - or it isn't easy to navigate and find what you need. Employees are busy and Salary Sacrifice will mostly likely be new to them - they may never have leased a car before. If they can't quickly see the vehicles of interest, are overwhelmed with too many questions or can't get the answers or information they need - they'll disengage. Getting access to vehicle information, pricing and a human to talk to must be easy, quick and deliver the answers they need. 

Solution: 

Make sure your employees know who to speak to - include a telephone number to the Sal Sac team at your provider on every communication -  even better if you have named contacts . Make access to the portal, microsite or web pages simple and ensure the basic scheme information is clear and present.  Consider also curating a shortlist of best offers or best sellers to help employees get start - your Salary Sacrifice provider will be able to do this along with communicating their very latest offers and pricing to keep interest and engagement high. 

How many employees actually know how to access the salsac scheme ? 

Is there one person or a team that owns and drives participation in your salary sacrifice scheme ? It may have been launched and was never mentioned again - or as we are finding more and more currently - it was launched but without clear and simple instructions on where to go and how to access the scheme.  Without this basic information - and regular reminders uptake will stall - but it is worth noting that not one size or solution fits every company. Communications should be planned from the outset and evolved as the scheme progresses to match your company - employee profile, locations and culture etc. 

Solution: 

Consider appointing internal champions or advocates that can assist employees with their questions and talk about their experiences. Make sure the scheme stays visible to employees all year round and consider seasonal themed promotions or information like: " How to maximise electric car range in the depths of winter. Highlight new adopters, their cars and experience within communications to keep the scheme in peoples minds. 

Is "too good to be true" salary sacrifice pricing affecting uptake ?  

There is no doubt the EV salary sacrifice delivers impressive savings, but for many, and especially if they don't know or can't see how it works - it sounds suspicious. If it isn't explained fully and in easy to understand terms many will assume there's a catch - when clearly there isn't !

Solution: 

This again highlights the need for effective and consistent communications - demonstrating how the savings occur ... the VAT, the NIC and income tax ... and include illustration for both basic rate and higher rate tax payers to avoid the feeling of exclusion. 

Ensure that communications highlight that your EV salary sacrifice scheme is HMRC compliant ... that insurance and full maintenance is included ... there aren't any large upfront rental payments and no credit search is made on the employee. #

Your salary sacrifice provider should be able to give you fresh comparison each month to keep it relevant and in date and ensure figures quoted are accurate 

The following articles may also be useful:  

• More than a benefit: Why EV Salary Sacrifice is more than just an employee perk

• SME Elegibility: Can a small business offer an EV Salary Sacrifice scheme to their employees? 

• BIK changes: Is salary sacrifice still worth it with the upcoming changes in BIK rates for EVs?

• SME benefits: How does a small business benefit from offering EV Salary Sacrifice  

Still not sure what's holding your salary sacrifice scheme back - or why uptake is lower than expected ? 

Take our 10-question Salary Sacrifice Healthcheck to gain a better insight into your current scheme - what's working, what's potentially missing and where to go next. 

The right scheme delivered and supported well will help you reduce emission, attract and retain the best talent and save everyone money - but only if employees are getting and understand the message. 

That's what you signed up for and that is what your Salary Sacrifice provider should be able to deliver 

Just as with car and van leasing we believe there is a better way for Salary Sacrifice to set-up, launched and delivered - and that is what we are building. If you'd value a no-obligation and open discussion around your current scheme and how to make it better give us a call at NEV Leasing on 01206 585837 ... email getintouch@nevleasing.com or simply complete and submit the form below. 

Better schemes mean bigger uptake and cleaner transportation - and we're passionate about helping companies make it happen.