Managing employee uptake of greener cars

15 July, 2020

More people than ever are driving Electric Vehicles (EVs) and a large proportion are company car and car benefit scheme drivers. With so many advantages - they’re cheaper to run, highly tax efficient and better for your organisation’s carbon footprint. But what if employees aren't sure about going electric? How do you manage and set up your car offering? We look at two approaches to help you decide on the appropriate level of car choice governance for your organisation.

1. Setting parameters on carbon emissions.

If your organisation is an eco-electricity producer it would make good business and reputational sense to only offer greener cars to your employees in the way of electric only, or a mix of electric and hybrid cars. Be that company cars or salary sacrifice options. There are plenty of different EV makes and models available with the majority now able to cover over 200 miles on a single charge. It makes electric cars highly practical for most drivers, and hybrid cars an exceptional middle ground for those slightly nervous about switching fuel types entirely.

With recent company car tax changes tipping in favour of greener cars (and especially pure electric models), there’s no doubt restricting choice to cars with lower emissions is good for your bottom line. Opting for this approach certainly won’t limit the attractiveness of your car benefit if you set the emissions cap correctly. The best way to do this is to understand your employees’ needs in terms of typical journeys and run a range of employer NI saving scenarios produced by different caps and also look at what the whole life cost of the car would be.

Go too low - for example by only allowing employees to drive 0g/km CO2 electric cars - and you could risk limiting the scheme’s appeal to employees who are ready to drive electric whilst reducing the appeal to employees who aren’t yet ready to change from fossil fuel cars or would logistically would find it challenging to drive a pure electric car.

Working with an experienced car benefit provider will help you understand how best to curate a car list that will deliver the right balance - an appealing employee benefit while grasping the carbon and cost-saving opportunity on hand.

2. Free choice, no cap on carbon emissions

A free choice of cars available on the scheme can be offered to your employees by removing the CO2 cap on cars. Whilst you may be worried that this would negatively impact your carbon footprint, working with a provider that offsets tailpipe emissions for every car across the whole vehicle range is a great way for you to have the best of both worlds. This means that your employees get a wider choice of vehicles whilst your organisation benefit from a carbon neutral scheme. Plus, you’ll likely find that the majority of employees will go for lower emitting cars as they’ll be paying lower company car tax on them. With a wider selection of cars, making a green car choice is also an option that’s based on education. As an employer, you’re already well aware of all the benefits electric cars bring, including low carbon emissions, cleaner air, big tax savings and lower running costs. Now all you need to do is educate your employees about these advantages. And that means plenty of communication. Working with a provider that can help communicate this value to your employees will make these efforts doubly effective.

Whether you decide to give people free reign or limit choice, there’s plenty you can do to influence your employees’ car selections. From inspiring and educational communications to providing cost-saving comparisons, you can nudge people to make the right choice for them, your organisation and the planet.

Making the right choice for your organisation

Each organisation must determine the right way for it to introduce ULEVs into its fleet; there's no set formula. We help our customers to understand that each organisation will have different needs, which will depend on a number of factors including:

  • the location of the business;
  • the commuting and business journey profiles of its employees;
  • the existing make-up of its fleet;
  • the number of employees not eligible for a company car;
  • the length of time left on its existing leases; and
  • whether employees have dedicated off road parking for the installation of a home charging point.

If you haven't yet considered a green car policy then we hope the information we've provided has highlighted a few ways in which you can introduce them. And, if you plan your transition to electric cars in a way, and at a pace, that suits your particular needs, success, and cost savings should be guaranteed.

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Tuskerdirect Limited is an appointed representative of Howden UK Group Limited (FRN 309639) for insurance mediation activities and Product Partnerships Limited (FRN 626349) for consumer credit activities, which companies are authorised and regulated by the Financial Conduct Authority.


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