Costs electric company car to the company

[I 8 a 4RE]

Question: I work for a large corporate. We are trying to make an offer to a new team member, but we are just too far apart on the package.

The last thought I had: What benefit can we offer that is a low cost to the business but high value to the employee?

I know he likes his cars: Could we offer him an electric company car?

Due to the low BiK of 1% and 2% in the coming years, it would be very cost effective to him.
By doing so we could offer him a Taycan / e-Tron / Model X which would cost him <£3k per annum out of pocket.

However, I have no idea how much cheaper (if at all) offering an electric car is for a business vs. just offering that money in cash.
Before I send the whole HR team on a wild goose chase; any thoughts?

[sociopath]

Find a new candidate.

If it's this hard now, just think what it'll be like when they're working for you

[DaveH23]

Isn't that a bit like offering a vegetarian a voucher for a Steak Restaurant?

[anonymous-user]

I 8 a 4RE said:

However, I have no idea how much cheaper (if at all) offering an electric car is for a business vs. just offering that money in cash.
Before I send the whole HR team on a wild goose chase; any thoughts?

It won't be much cheaper to the company. You would save the employer's National Insurance, that's all.

I'd suggest reviewing how much additional value this new person could really add to the company and how you are going to measure it. And whether if you break your salary structure for this one person, how much trouble it might cause you with other members of the team.

[J1990]

EddieSteadyGo said:

It won't be much cheaper to the company. You would save the employer's National Insurance, that's all.

I'd suggest reviewing how much additional value this new person could really add to the company and how you are going to measure it. And whether if you break your salary structure for this one person, how much trouble it might cause you with other members of the team.

You also save on pension contributions, which depending on the company package could be somewhat material.

If the guy is being offered a 120k company car I'm assuming this is a fairly well paid job, I doubt the actual amount saved would be worth the extra effort vs just offering a higher salary. If the higher salary isn't an option now, what do you do in a year or two when it comes to pay review?

[anonymous-user]

J1990 said:

You also save on pension contributions, which depending on the company package could be somewhat material.

Yes, good point.

[I 8 a 4RE]

J1990 said:

You also save on pension contributions, which depending on the company package could be somewhat material.

If the guy is being offered a 120k company car I'm assuming this is a fairly well paid job, I doubt the actual amount saved would be worth the extra effort vs just offering a higher salary. If the higher salary isn't an option now, what do you do in a year or two when it comes to pay review?

Thank you both; so NI and pension that helps.
I will let HR run some numbers.

Re: pay review: in most meritocracies proving your worth from outside is much harder than inside, same here. He will be fine.