As the UK still emerges from the Covid-19 pandemic, many businesses are grappling with the transition from widespread remote working back to the office. While some employees are eager to return, others are hesitant or uncertain about commuting again. The challenge for employers is to find ways to encourage employees to make the return to the office seamless and hassle-free.
One increasingly popular solution is the use of car subscriptions as part of employee benefits packages. Many businesses are offering employees the option to subscribe to a car, as it provides flexibility, low upfront costs, and a simple solution to the challenges of managing a company vehicle. In this article, we’ll explore why car subscriptions are becoming the go-to option for employers looking to support their workers in returning to the office.
The Post-Covid Shift: Why Car Subscriptions Are Gaining Popularity
Before the pandemic, many companies provided company cars as a perk for employees, especially for those in senior positions or who needed to travel frequently for work. However, with the rise of remote working during the pandemic, the demand for company cars waned as people were working from home, and many employees no longer needed to commute to an office regularly.
Now that businesses are encouraging a return to the office, employers are looking for ways to incentivise workers to make the transition back into the office more appealing. Many employees are still wary about public transport, and some might not own a car or prefer not to deal with the hassles of car ownership. This is where car subscriptions have come into play.
Car subscriptions offer employees an easy way to access a vehicle for a set period—whether it’s for a few months or longer—without the financial burden of traditional car ownership or leasing. The flexible, all-inclusive nature of car subscriptions makes them an attractive option for employers looking to provide employees with a practical commuting solution without the complexities of managing a company fleet.
Why Car Subscriptions Are Ideal for Employees Returning to the Office
Here’s why car subscriptions are particularly well-suited for employees who need to commute to the office post-pandemic:
1. Low Upfront Costs
Traditional car leases or purchasing a company vehicle requires significant upfront costs, including large down payments, purchase costs, or long-term commitments. Car subscriptions, on the other hand, typically have no or low upfront costs. Employees simply pay a fixed monthly fee that covers all the essential costs—insurance, maintenance, road tax, and sometimes even fuel.
For employers, offering car subscriptions allows employees to access vehicles without requiring a large financial commitment or worrying about the complex logistics of car ownership. The flexibility of monthly payments means businesses don’t have to worry about significant financial outlays, making it an attractive solution in a post-pandemic world where finances are still recovering for many companies.
2. Flexibility: No Long-Term Commitment
Car subscriptions are highly flexible, which makes them ideal for employees who may not want to be tied down to a vehicle long-term. If an employee’s work situation changes, or they move to another location, car subscriptions allow them to simply return the car and cancel their subscription with minimal hassle.
This is particularly advantageous for employers who want to provide an option for workers without the complications of long-term contracts. If the employee leaves the company or no longer requires the car, they aren’t stuck with the responsibility of disposing of the vehicle or managing its resale—something that can be a challenge with traditional company cars.
3. Easy Fleet Integration
For businesses with a large number of employees, managing a fleet of company cars can be complicated, especially when trying to keep track of maintenance, insurance, and ownership. Car subscriptions make it easy to add vehicles to a company’s fleet without the administrative headaches.
Many subscription services allow employers to add vehicles directly to their fleet insurance policies, streamlining the process and ensuring the vehicles are fully insured without the need for additional paperwork. This makes it simple for employers to offer cars to employees without the burden of managing individual insurance policies or maintaining separate contracts.
4. No Depreciation Concerns
One of the key concerns with traditional company cars is the depreciation in value over time. When a company purchases a vehicle, its value drops significantly the moment it leaves the showroom. With car subscriptions, employers don’t have to worry about this issue. Subscription services provide a set monthly fee, and at the end of the subscription period, the vehicle can simply be returned. There’s no need to worry about losing money on the sale or trade-in of a company car, making car subscriptions a more financially efficient solution.
5. A Sustainable Option
Many car subscription services now offer electric vehicles (EVs) as part of their subscription packages. This is a great opportunity for employers to promote sustainability and reduce their carbon footprint. Providing employees with access to EVs through a subscription model encourages greener commuting, aligns with corporate sustainability goals, and helps businesses meet their environmental targets.
Who’s Offering Car Subscriptions for Employees?
Several companies have jumped on the trend of offering car subscriptions to employees as a part of salary benefits or corporate incentives. Here are two providers that are making it easier for businesses to integrate car subscriptions into their employee offerings:
Ezoo
Ezoo is one of the leading companies providing flexible car subscription services, including options for businesses. With a focus on offering all-inclusive subscriptions, employees can drive a variety of vehicles, including eco-friendly electric cars. Ezoo’s subscription packages are designed to be easy to integrate into employee benefit schemes, and they offer full fleet management capabilities, including insurance and maintenance.
Cocoon Vehicles
Cocoon Vehicles is another provider that allows businesses to offer car subscriptions to employees, particularly with a focus on electric and hybrid vehicles. By integrating a salary sacrifice scheme, Cocoon Vehicles helps employers provide tax-efficient vehicle benefits. Employees can access a range of vehicles with low monthly payments, all-inclusive services, and the flexibility to swap cars as their needs evolve.
How to Implement Car Subscription Schemes for Employees
For employers looking to implement car subscription schemes, the process is relatively straightforward:
Partner with a Subscription Service:
Work with a provider like Ezoo or Cocoon Vehicles to establish a fleet of subscription vehicles that employees can choose from.Communicate the Benefits:
Make sure employees are aware of the benefits of using a car subscription, such as lower upfront costs, the ability to switch vehicles, and the flexibility of no long-term commitment.Set Up a Payment Structure:
Employers can either offer the subscription as a fully paid benefit, or they can set up salary sacrifice schemes where employees pay for the subscription through a deduction from their pre-tax salary.Manage the Fleet:
Subscription services often allow businesses to easily integrate multiple vehicles into their existing fleet insurance policies, ensuring that everything is covered without additional paperwork.
Conclusion: The Future of Employee Benefits
As the workforce continues to transition back to the office post-pandemic, businesses are seeking new ways to support their employees. Car subscriptions offer a flexible, low-cost, and hassle-free option for employers looking to provide commuting solutions. With services like Ezoo and Cocoon Vehicles, businesses can easily integrate these services into their employee benefits packages, helping to ensure that workers have a smooth, sustainable, and stress-free return to the office.
By offering car subscriptions through salary sacrifice schemes or other employee benefit options, employers can improve employee satisfaction, encourage sustainable commuting, and save on the administrative burden of managing a fleet of company cars.
