Company car schemes are key to recruitment and retention, says survey

Companies are recognising that company car schemes are increasingly worthwhile investments, with 27% more fleet managers currently seeing company cars as a recruitment and retention tool than earlier this year, according to a survey published by GE Capital.

Our guide to company cars helps you make the right buying decision…

RESEARCH How salary sacrifice is reshaping company car benefits Five ways to fund a company car scheme Pros and cons of providing company cars Outsourcing fleet management: how to select a supplier 10 questions to ask when changing your fleet supplier How to build a company car policy     MARKET EVALUATION  Cash for car: an alternative to company car schemes  Short term car hire: a sensible alternative? Car clubs and what they mean for businesses Fleet management glossary: the jargon of company cars Car leasing and contract hire companies: 20 major players ‘Opticash‘ cash allowances     IMPLEMENTATION  Grey fleet driving offences: how to deal with a growing problem Seven steps to upgrading fleet management software How to implement the outsourcing of fleet management How good is your car benefit policy?     Personnel Today Smart Buyer: all Company Cars content

More than two-fifths of managers value company cars as an important part of employee recruitment and retention. Cost is still an important factor for 82% of fleet managers in running their company car schemes. However, there are ways for companies to cut the costs of implementing and maintaining such plans.

Personnel Today reported last month that the reduced company car tax on low-emission cars had made purchases funded through salary sacrifice much more appealing to both employees and employers.

The employee funds the car, by taking a reduction in salary, and pays company car tax. Income tax and national insurance contributions can be reduced because the cost is deducted from the employee’s gross salary before statutory deductions.

Gary Killen, UK commercial leader for GE Capital, commented: “The company car should not be seen as merely a component in getting a job done, even in times when economic conditions are tougher.”

The report also found that more managers are offering their employees the freedom to choose the manufacturer of their company car, with 40% now giving staff this option. This is a 29% rise on the previous survey.

The Fleeteye industry review is based on a quarterly survey of fleet operators which measures their practices and attitudes towards company car schemes.

For advice on procuring and implementing company car schemes, read our Smart Buyer guide.