Leasedrive Velo argues that HR should do more to promote salary sacrifice
The company launched its own salary sacrifice scheme called EnviroDrive in October 2008, promoting the cost saving and environmental benefits, but says that take-up has been slower than it should have been. Whilst the company said that some providers may have been slow in offering schemes, it commented that some of the blame for poor take-up must lie with HR and, in particular, the compensation and benefits community.
Roddy Graham, commercial director at Leasedrive Velo, said: 'In many cases, they have not taken the time to fully understand the "ins" and "outs" of salary sacrifice or, when convinced, properly developed an implementation plan and clearly communicated the benefits of the company car as a benefit under salary sacrifice. Given that the company car is one of the most valuable, high-profile and emotive employee benefits, this can often represent an oversight on the part of HR to properly seize the initiative, especially at a time when they have to be more creative with total reward packages.'
This follows the publication last week of survey results from ACFO showing that interest levels in salary sacrifice schemes are lower than marketplace comments would suggest.
Leasedrive Velo's essential guide looks at the background; answers what is a salary sacrifice; where HMRC figures; looks at what an employee and employer has to consider; considers car salary sacrifice schemes, identifies the benefits of car salary sacrifice schemes to an employee and the employer; investigates potential issues and concludes that salary sacrifice provides a creative way to enhance the total remuneration package in the eyes of the employee at no additional cost to the employer and as a tax-efficient scheme for the employee, saving them both money.
Free copies of the Essential Guide to Car Salary Sacrifice Schemes are available to download at www.leasedrivevelo.com/guide-salarysacrificeFor more of the latest industry news, click here.