Company
cars or car-leasing schemes are still being used as an integral part of benefits
packages, especially for senior executives, according to new research.
The
research by IRS Employment Review shows, based on a survey of 209 HR
departments, shows two-thirds of employers offer company cars and half operate
a car allowance scheme.
The
review found:
● The median value
of a car allowance is £4,500
● More than 90 per
cent of organisations operate mileage allowances for employees who have to
travel on business. The most common practice is to follow the Inland
Revenue-approved rates of 40p per mile for the first 10,000 miles, and 25p
thereafter
● One-third of
organisations offer employees interest-free season ticket loans to help with
the cost of travelling to work
● 98.5 per cent offer the loan to pay for public
transport
● a quarter (26.5 per cent) of respondents
allow employees to use the perk to pay for car parking;
● fewer than one-tenth of employers (8.8 per
cent) cover road and bridge toll payments; and
● less than 1 per cent of organisations say
that the loan may be taken out to pay congestion charges.
● Three in 10 (30.9 per cent) respondent
employers limit interest-free loans to employees who have completed a minimum
length of service with the organisation.
These range from two months to two years
● Seven in 10 (69
per cent) organisations operate subsistence allowances to cover meals and
accommodation for employees who spend time away from home while on company
business.
IRS
Employment Review’s pay and benefits editor Sheila Attwood said: “Despite a
general feeling that company car schemes are not in keeping with environmental
concerns, the latest IRS research proves that employers are still rewarding
their staff with a variation of this particular benefit.
"What
is clear, too, is that many organisations still grant cars to senior employees
as a perk rather than because of any particular business need," she said.
“Benefits and allowances can significantly boost basic salaries; employers
recognise this fact and adopt a flexible approach when finalising their reward
packages.”
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