Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Company carsLatest NewsPay & benefits

Seven in 10 firms give employees the car or cash choice

by Mike Berry 13 Jul 2005
by Mike Berry 13 Jul 2005


Seventy per cent of companies offer employees the choice between a company car and a cash allowance, according to a survey by Mercer Human Resource Consulting.  

The average annual car allowance for company heads is £10,300. Senior managers, middle/junior managers and sales representatives receive respectively £8,200, £6,500 and £5,200 a year on average. Professionals get the lowest average allowance of £4,600.

The survey, involving 245 UK companies, focuses on the prevalence and features of car benefits, together with the related tax issues. 

For employees who opt to receive a car instead of an allowance, the typical purchase price varies significantly according to job role. For example, the average cost of a car for company heads is more than double that of a car for professionals – £32,800 and £16,000 respectively.    

Forty percent of organisations allow employees to purchase the car at the end of the replacement period.  

“Company cars represent one of the most expensive items in an employee benefit package,” said David Wreford, European principal at Mercer. “Company car policies now tend to focus on providing better value for both employers and employees.” 

Mercedes 320 is the most typical car for company heads, while senior managers generally opt for a BMW 5 Series. Typical cars for lower-ranking employees include Audi A4, VW Passat and Vauxhall Vectra.    

The survey found that car use also depends on workplace status. For example, 94% of company heads can use their cars for business and personal purposes compared with 47% of sales representatives and 35% of professionals.

“Both employers and employees tend to underestimate the costs associated with company cars and the value of the cash alternative.  As company cars become less and less tax efficient, more employees are likely to opt for the cash,” Wreford said.  

Avatar
Mike Berry

previous post
BBC HR chief earns £313,000
next post
Employers and unions target retail rage

You may also like

Employment law changes for 2022 and beyond: update...

1 Jul 2022

BT workers vote for strike action over pay

1 Jul 2022

Chief financial officers now more involved in HR

1 Jul 2022

Top 10 HR questions June 2022: Former employees

1 Jul 2022

Pay all care workers a £10.50 hourly minimum...

30 Jun 2022

Royal Mail managers vote to strike over restructure

30 Jun 2022

Give wellbeing a board seat: Prof Sir Cary...

30 Jun 2022

One in five workplaces lack LGBT support policies

30 Jun 2022

Christian doctor loses transgender pronoun case, but beliefs...

29 Jun 2022

New chief workforce officer at NHS England

29 Jun 2022
  • NSPCC revamps its learning strategy with child wellbeing at its heart PROMOTED | The NSPCC’s mission is to prevent abuse and neglect...Read more
  • Diversity versus inclusion: Why the difference matters PROMOTED | It’s possible for an environment to be diverse, but not inclusive...Read more
  • Five steps for organisations across the globe to become more skills-driven PROMOTED | The shift in the world of work has been felt across the globe...Read more
  • The future of workforce development PROMOTED | Northumbria University and partners share insight...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2022

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2022 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
    • OHW Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+