We are reviewing our total remuneration and a question has been asked about car allowances. Is there a new emerging trend over the past year or two to move away from offering car allowances to employees below Executive / Leadership roles? I have looked at the traditional annual salary survey benchmark data, but this isn't showing any reduction in number yet.
I would be interested in hearing from Companies within High Tech / Consulting sectors who have reviewed their benefits recently. Have you retained or removed car allowances?
With the growing popularity of offering ULEV cars as a sacrifice benefit, we are wondering whether to keep this allowance or to consign it to the history books.
Thanks, Chris for raising this query.
Questions for Julie and Sam;
Julie, from the discussions internally I believe the only reason we are not rolling into salary as you are doing is tax purposes.
As this driven an uplift overall so that total 'take home' pay is in line or has the decision been to transfer the car allowance value across as it is?
Sam, we have considered how we move people away as part of our overall decarbonsiation and we can see that most car allowances are purely a way of trying to be market competitive. How has the change gone down within the business?
We are consolidating all remaining car allowances into salary.
We are removing our car allowances as part of our ESG/carbon journey along with encouraging less travel and hybrid working. It's being replaced by an alternative allowance that we are encouraging employees to spend on benefits. The allowance payable is grade driven and pro-rated based on working hours for those who are part time.
As company car leases come to an end, we will not be ordering new vehicles and instead will be moving employees onto the allowance.
We will also be introducing a hybrid and electric vehicle salary exchange scheme in the new year.
Chris I'm going to forward your post to our Global Fleet Manager - as we are discussing similar