Fleet News

HR unaware of full potential of salary sacrifice, Maxxia study finds

Maxxia

HR professionals suffer a lack of awareness regarding the full potential of salary sacrifice car schemes, suggests a new report released by asset finance company Maxxia.

The study highlights a number of misconceptions relating to the financial commitment required, the perceived administrative burden and consequences of an early-contract termination.

It found that 96% of current HR directors and managers are familiar with salary sacrifice schemes.

However, a third of those same staff members admit to finding the schemes confusing.

Maxxia said the confusion often appears to lie in the discrepancy between expectation and desire when it comes to cases of early-termination.

Three-quarters of respondents expected an early-termination charge, and while just 29% think it is possible for an ex-employee to keep their car when they leave mid-term, 71% would like them to have this option.

Maxxia said it is clear from this gap that HR decision makers are unaware that a new paradigm fulfilling this need is available and its Lifestyle Lease isproduct offers a solution to this early-termination liability.

This product establishes the lease with the employee rather than employer, it creates a portable agreement, allowing the employee to take the car with them and even continue the scheme through their new employer.

Gordon-Calder Jones, business development director at Maxxia, said: “What this report really shows us is that there is a problem of clarity in this sector.

"The majority of HR decision-makers believe the schemes are a valuable benefit, yet not all are implementing them due to misconceptions about perceived risk and hassle. 

"By reviewing the latest schemes in the market, HR staff would be aware that it is possible to enjoy all of the benefits that salary sacrifice car schemes have to offer with none of the risks or hassles normally attached.”

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee