Once an employer has decided to put a cycle-to-work scheme in place, most choose to use a third-party supplier to handle much of the administrative work. It’s important however for the employer to play a key part in promoting the scheme to employees.
It is wise for employers to have someone, usually in HR, dedicated to managing the scheme and liaising with the third party cycle to work supplier. If employers have an intranet then use that to promote and explain the scheme. Depending on budget, print information about the scheme and distribute that to employees. Hold meetings and perhaps a bike fair.
Employers who go it alone will need their own consumer credit licence. This could cost upwards of £12,000. They must not enter into credit agreements with employees aged under 18. Employers tend to use third parties that are either cycle-to-work scheme specialists or general benefits suppliers who will take away many of the headaches associated with running a scheme.
Ann Pickering, HR director at communications giant O2, told Personnel Today: “The most challenging aspect of the cycle-to-work scheme is the administration of the plan and the complexity of the rules surrounding it.
“Explaining to employees that they are leasing a bike for a set period and then have the option to buy it for a fair market value is a difficult message to get across,” she said.
But other reward and benefits managers explain that these complexities are usually offset by the enthusiasm many employees show for the scheme and by the cycle-to-work providers themselves who communicate how the scheme works effectively and who often handle many enquiries.