Electric vehicle company car schemes are fast-becoming a key retention and recruitment tool as the job market heats up following the pandemic.

EVs have changed the perception of company car schemes completely in a very short space of time

While petrol and diesel company cars have been seen as less attractive by drivers in recent years due to rising Benefit-in-Kind (BiK) taxation, EVs have changed that perception completely in a very short space of time, FleetCheck has reported.

Managing director Peter Golding said: “We are hearing a lot of anecdotal evidence from across our customer base that, where EVs are being offered to employees, there is a definite increase in satisfaction. It’s partially a financial benefit because BiK taxation is so low, but there is also a genuine momentum behind people wanting to adopt EVs.”

Golding added that EVs are proving particular attractive to drivers on company car schemes as the employer takes on the financial risk of an EV, without an impact on business running costs.

“Fleet operators now know that whole-life costs for EVs are comparable to petrol and diesel equivalents, but the monthly lease rates still look prohibitively high from a consumer point of view.

“As long as the driver’s personal profile makes them a suitable driver of an EV in terms of factors such as vehicle range and having access to off-street charging, there is a currently a very good argument to offer them an option within their budget from a human resources point of view.”

And EVs are also proving highly attractive to employees as part of salary sacrifice schemes, due to the cost savings.

“Our view is that every employer of every size should be considering offering EV-based salary sacrifice at the moment. It provides a substantial employee benefit at little or no cost to the employer and seems very much a no-brainer.

“At a point in time when the jobs market looks as though it could be more competitive and fluid than for many, many years, the role of EVs in recruitment and retention appears to be something that will only grow while taxation remains low.”

However, with BiK tables still only available until 2024/25, uncertainty remains over the benefits for company car drivers adopting EVs going into the second half of the decade.

“Will the Government start to move it back to the levels that we have seen for petrol and diesel vehicles, or will it view the company car market as an ongoing means of promoting electrification of the overall car parc?,” added Golding.