Company Cars: The Pros And Cons Of Introducing A Company Car Scheme
Many businesses provide company cars to help their employees get around. The employee can jump in the car and drive to their next work location with no issue. They don't need to waste time and money on public transport and risk all sorts of delays and cancellations. Company cars streamline the process and enhance employee performance. Company cars are particularly popular for roles that involve a lot of travelling in the UK.
If you're not too sure about a company car scheme, here are the pros and cons.
Pros Of Company Cars
Company cars are convenient for both the employee and employer. Employees have much more flexibility when travelling around for work. They can get to remote locations and visit projects on-site – without needing to catch a train. They can commute to an office out of the way and make it home for dinner.
A company car is also a sought-after employee benefit. A worker vehicle could attract more high-quality candidates and improve your team's calibre. The company car scheme will help with recruitment and staff turnover. It's particularly useful for those with children who need the added flexibility. In a world of employees resigning at record rates, a company car could be just the thing to attract and retain top talent.
You could even use the company car as part of a salary sacrifice scheme. It will reduce the employer's NIC obligations and increase the employee's take-home pay.
Cons Of Company Vehicles
Company cars can cost a lot of money. The employer will be responsible for maintaining the car, including servicing, MOT, and more. Thankfully, MOTs can be booked easily online, so the process doesn't need to take too long. The cost, however, can add up over time.
Employees also face extra taxes for driving company cars, taking a chunk out of their salary. The employee needs to be able to afford to run the company car.
Many people are trying to reduce their carbon footprint these days, and using public transport is far better for the environment. Take a look at the local public transport network and assess whether a company car scheme. Most employees may already have a car or use public transport out of convenience. Think about how the company car scheme will impact your business reputation – and whether it could counter your brand values. For example, if you are an eco-friendly brand, you could offer electric or hybrid vehicles to your employees.
Company Car Conclusion
As you can see above, the advantages of a company vehicle program outweigh the costs. It's time for your business to upgrade its employee benefits package this year with a company car scheme.
