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.
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.