As we inch further into the 21st century, the winds of change continue to reshape the business landscape. The future of work is not just about breakthrough innovations or flexible work schedules; it’s about creating environments that align with the values of today’s workforce. Enter the rising star of employee benefit trends: ‘green benefits’.
Sustainability is no longer a buzzword but a claxon for action, echoed by millions of socially-conscious individuals. Companies who answer this call are boosting their green credentials and finding themselves on the favourable side of an emerging employee benefit trends. So, let’s dive into the sea of green benefits and explore one benefit fast becoming the darling of the corporate world – electric vehicle (EV) salary sacrifice schemes.
The Changing Landscape of Employee Benefits
There was a time when employee benefit were a straightforward affair: annual leave, health insurance, and maybe a gym membership thrown in for good measure. But as Bob Dylan once sang, “The times they are a-changin’,” and employee benefit are not spared from this transformation in the current business landscape.
As a new generation of workers enters the corporate world, they bring fresh perspectives, novel priorities, and a hefty dose of environmental consciousness. Millennials and Gen Z, the latest entrants into the workforce, are looking beyond the paycheck. They crave a sense of purpose and an alignment of values, and want to know that their work contributes to the planet’s wellbeing.
When choosing a workplace, a company’s environmental and social responsibility is increasingly a significant factor for younger generations. The Purpose Pulse Report revealed that 71% of Millennials and Gen Z’s see climate change as the biggest challenge facing their generation. Consequently, they influence their career choices. Deloitte’s 2021 Global Millennials and Gen Z Survey shared that 44% of Millennials and 49% of Gen Z’s have made decisions based on their values.
The answer lies in green benefits.
Green Benefits: An Emerging Trend
What’s green, offers tangible value, and can significantly bolster employee morale and retention? You’ve got it – green benefits.
Green benefits are a subset of employee benefits, specifically designed to focus on sustainability and environmental consciousness. They are attractive for organisations looking to marry their corporate social responsibility (CSR) initiatives with their employee benefits program.
Such benefits can include:
- Green Commute Initiatives: As we rethink our commuting practices in the face of climate change, companies can encourage employees to use public transportation, bicycles, carpooling or electric vehicles. This can be done by subsidising the cost of these alternatives or providing necessary facilities like bike racks or charging stations.
- Eco-friendly Workspace Options: This includes everything from energy-efficient office buildings to sustainable office supplies. Some companies even go the extra mile by supporting tree-planting initiatives, offsetting their carbon footprint, or endorsing waste recycling programs.
- Sustainable Investment Options: Increasingly, employees are interested in aligning their investments with their values. Offering a ‘green fund’ or similar sustainable investment options in a company pension scheme is a concrete way of supporting employees’ desires to make a positive impact on the world.
- Green Learning and Development Programmes: From workshops on sustainable living to sponsoring employee participation in climate action movements, these programs help foster a culture of sustainability within the organisation.
However, one benefit is making waves for its triple advantage of being green, practical, and financially appealing – EV salary sacrifice schemes. It’s time to shine the spotlight on this trend.
Electric Vehicle Salary Sacrifice: A Win-Win-Win Situation
An EV salary sacrifice scheme allows employees to give up part of their pre-tax salary in exchange for a brand-new electric vehicle at a hefty discounted rate. Sounds pretty good, doesn’t it? But it’s not just the employees who stand to gain; this scheme also benefits employers and the environment, creating a rare win-win-win situation.
Employees get to drive a brand-new electric car without the upfront cost, and their monthly payments come out of their gross salary before tax. Alongside an incredibly low Benefit in Kind rate (a type of tax paid on non-monetary compensation), EV salary sacrifice results in significant savings compared to a traditional car lease.
For employers, an EV salary sacrifice scheme can make a huge difference in talent acquisition and retention. It sends a clear message to current and potential employees about the company’s commitment to sustainability. These schemes are generally cost-neutral to implement and can even result in lower National Insurance contributions due to the lower gross salary.
Lastly, the environment benefits every time someone chooses to drive an electric vehicle instead of a traditional petrol or diesel car. Lower carbon emissions, improved air quality, and a step towards a more sustainable future – what’s not to love?
The Future of Work and Employee Benefits
Green employee benefits, such as EV salary sacrifice schemes, are rapidly shaping the future of work. The next generation of workers isn’t just looking for financial compensation. They want to align their work with their values, contributing to solutions for the pressing issues of their time.
This changing landscape requires businesses to be proactive, innovative, and sincere in attracting, retaining, and engaging talent. Offering green benefits is not just about ticking a box for corporate social responsibility. It’s about genuinely embedding sustainability into your business operations, demonstrating a commitment to your employees’ values, and taking concrete steps to make a positive environmental impact.
We’ll leave you with this: the future of work will be more green, more sustainable, and more attuned to the values and needs of its workforce. As we move forward, businesses that embrace this trend and incorporate green employee benefits, like EV salary sacrifice, will lead the way.