More than eight in 10 (83%) of companies plan to offer an electric car salary sacrifice scheme for employees in 2024, new research by The Electric Car Scheme finds.

The study found 47% of companies plan to implement an EV sal-sac scheme in the first half of 2024 alone

Its study of 250 managing directors, finance directors and HR directors revealed that 47% plan to implement one in the first half of 2024 alone, while 16% already have one in place at their business.

The findings echo latest BVRLA research. Its newly published Leasing Outlook for Q2 2023 shows salary sacrifice numbers for its members have soared by 54.6% year-on-year, far outstripping other forms of funding solutions.

However, while many businesses are aware and interested in such schemes, which allow employees to save 30-60% on an electric car lease, there are a number of potential misconceptions which may be holding back uptake.

Nearly nine in 10 (89%) directors believe it would cost them money to run an electric car scheme, as 90% believe there is significant risk to the company by having a scheme (i.e., if an employee leaves or is made redundant). That’s despite the fact there is no direct cost to businesses to run an electric car scheme and some providers, such The Electric Car Scheme, ensure there is no risk to the company should an enrolled employee leave.

The research also ranked the most important considerations when considering implementing a new employee benefit. Cost came out on top, followed by the benefit to the employee, the risk to the business and finally the effort it takes to set up.

Thom Groot, CEO and co-founder of The Electric Car Scheme, commented: “There is tremendous demand for electric cars through salary sacrifice, which is rising all the time. It is no surprise to see that 2024 is set to be a landmark year for the scheme. This is a sought-after benefit, and one that can make a big difference in both talent attraction and retention, and HR directors clearly realise this with plans to stay ahead of the curve in the works.

“What is clear, however, is that decision makers still see it as a potentially risky, complex, and costly benefit to implement.

“This is exactly why we set up The Electric Car Scheme, I was trying to set up a scheme for myself and found it far too complex. The Electric Car Scheme is free for employers to run, removes that complexity by taking the paperwork off stressed HR managers’ hands, and through our market-leading risk protection means that there is no risk to the business.”