CASH INSTEAD OF A CAR PLEASE!
Tue, 28 Oct 2014
New employees will take the cash instead of a company car when being recruited for a new role, according to research from professional services company Towers Watson.
Tower Watson’s 2014 Company Car Benefits Survey shows that cash allowances continue to be employees’ preferred option (55%) and that there has been a 5% increase in the use of cash-or-car choice plans since 2012.
Half of UK companies also plan to review their company car policies in the next 12 months, with more than three-quarters of companies saying their current policies need revising for them to remain competitive.
“Car benefit policies are prone to change, with even small updates to legislation, taxation and environmental standards impacting on how car-related rewards need to be delivered,” says Darryl Davis, senior consultant at Towers Watson’s Data Service division.
“So when companies update their policies they should also benchmark them in light of increased hiring activity and competition and because they are such a high-value aspect of the reward package.
“As the individual value of car schemes continues to rise, Western European companies are moving away from car-only schemes to choice policies with a cash alternative – in line with the greater flexibility that employees are demanding in all areas of compensation,” adds Davis.
“In the broader context of external pressures continuing to suppress salary and bonus levels, company car schemes and car allowances are an opportunity to reward staff more competitively.”