Using Car Benefits to Drive Engagement

Transcription

1 Using Car Benefits to Drive Engagement

2 Transport of the future?

3 Let s get started

4 Established 25 years ago, we are 1 2 A multi award-winning leading provider of vehicle based benefits The UK s largest independent leasing company We manage over 42,000 vehicles and our schemes are live in many household brands and some of the biggest organisations in the UK.

5 A company car for everyone?

6 Company Cars UK Market Overview c.31m cars and 3.6m LCVs c.2.8m company cars around half of these SMEs c.1.36m cars funded by contract hire Average CO2 emissions have fallen from 181g/km in 2000 to 128.3g/km in 2013 (41% drop) New car registrations increased 10.1% in the last 12 months and are over pre-recession levels (SMMT) 30 months of growth Switch from petrol - in % diesel and now over 50% are diesel

7 All Employee Benefit Company Car Pros, Cons and Trends in funding BiK changed to emissions based ra=ng

8 Challenges in 2014 and Beyond for HR

9 ① Simplification ② Competition for talent ③ Retention ④ Proving value of benefits - ROI Economic Downturn Economic Growth Cost savings & policy Focus on benefits - to attract and retain talent Focus on core business reduced admin

10 Why do you offer employee benefits?

11 An effective retention tool An effective recruitment tool Supports employee health and wellbeing Supports the employer brand Because industry or regional competitors do Source: Employee Benefits, The Benefits Research 2014

12 And how can car schemes help?

13 An attractive benefit that helps retain, engage and motivate Improve on what your competitors are offering Tailor it to your brand Increase duty of care compliance You open up an additional income stream Minimal admin to handle Now you can open up car schemes to your wide audience base!

14 Salary Sacrifice increasing in popularity

15 Attractive to employees and employers The principal of Salary Sacrifice is accepted by 80% of Drivers as a viable way to secure the use of a new vehicle survey of 500 randomly selected UK drivers. 80% Salary sacrifice car schemes are the most popular benefit that employers plan to add to their flexible benefits plan. Employee Benefits/Towers Watson Flexible Benefits Research, 2014.

16 How it works 1 Employee orders car discounted due to Corporate s buying power 2 Zenith leases car to employer. Employer can reclaim a proportion of VAT, reducing initial cost 3 Employee pays for use of car from gross salary, saving income tax and NI and pays Benefit-in-Kind (BiK) tax on car 4 Employer saves Class 1 NI on sacrificed salary and pays Class 1A NI on the BiK value of the vehicle

17 Example Savings Example Savings Drivers often underestimate how much their existing (non salary sacrifice) package costs Indicative savings versus retail Significant savings can be made through salary sacrifice * The Kia lease has a monthly payment of for 36 months. Figures are indica=ve only. Insurance is based on a 32 year old male living in LS28 with 10 years driving experience, no penalty points or convic=ons, zero no claims bonus, with business use and 500 excess. The insurance quota=on is the cheapest available on comparethemarket.com. The Kia quota=on has been obtained from Kia online ( on 10 February ** Quota=ons are indica=ve for a 32 year old based on a 20% tax payer as at 10 February 2014 and will vary according the scheme structure, tax rates and manufacturer pricing available at the =me. Offer valid un=l Images are for illustra=on purposes only. Terms and condi=ons and early termina=on fees apply.

18 Benefits to your employees 1 Brand New Car 2 Fixed monthly payments 3 No deposit and no hidden costs 4 Significant cost savings compared to retail alternatives 5 All-inclusive package fully insured, taxed, maintained, with road tax, breakdown, tyres, glass and more All employees need to do is keep an eye on their fuel.

19 Where Salary Sacrifice works well 1 Commitment to marketing, not just at launch 2 Large organisations with large eligible " populations 3 Stable organisations 4 Where it researches well with employees

20 In Summary

21 Balance needs of employees & business In Summary, cars related benefits can support Attracting Talent Retention Duty of care compliance Allowing choice Environment through lower CO2 Work with your provider to receive the best result and drive engagement and meet core business objectives

22 NATS Case Study The NATS Low Emissions Car Scheme Christine Hyde Supply Chain Management

23 About NATS A leading provider of Air Traffic Control products and services Previously part of the Civil Aviation Authority, we became a PPP in 2001 (NERL) providing en-route and Oceanic air traffic control for the UK. Regulated for Safety and Price by the CAA NATS Services Ltd. (NSL) provides air traffic control at the busiest UK airports And products and services in >60 countries world-wide. Consultancy, control towers, centres, and Air Traffic Control at some Spanish Airports

24 " Low Emission Car Scheme - Why did we do it? Savings Employee benefits Grey fleet control Reduce CO2 Talent Acquisition and Retention Must haves Easy Admin for NATS Minimal risk Executive Support Trades Union engagement Savings Contingency fund " " "

25 Key facts the NATS Low Emission Car Scheme Launched 1st April g/km CO2 cap 2 cars per employee 1 for partner/spouse 2 year contract Clear policy 70+ orders within the first three weeks 580 vehicles ordered in total since launch Average emissions 108g/km Choice of over 900 cars 11% Eligible Employees

26 What went well Learnings Cross functional team Attention to detail FAQs Cooperation from manufacturers Planned launch campaign Great roadshows Online ordering Dedicated team at Zenith Contingency fund build More information about tax Change eligibility period Vehicle Return

27 What s next? Mini roadshows New improved website Greater choice of cars Electric cars CO2 level reduction?? Refresh communications Refresh Policy Monitor savings

28 Any questions?