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Your employees have the drive to save you a car load of money

We live in tough economic times for employers; overheads are steadily increasing and profit margins are being squeezed. These days it can be difficult to keep good staff when you can't afford to give them a pay rise and yet their family's cost of living still keeps on rising. Significant numbers of employees are either moving to jobs with marginally better salaries or, increasingly, to a job closer to home to cut back on fuel and parking costs.

This is a trend which is costing you money. When good staff leave, you not only lose their experience and expertise but you have to go to the expense of recruiting and training someone to replace them. But there is a way to break this vicious circle; a way to retain staff by putting more money in their pocket even at a time when you cannot afford to increase their pay.

When good staff leave, you lose their experience and expertise.

The Workplace Parking Scheme is a HMRC approved arrangement that is guaranteed to save both you and your employees money. It can be introduced as a stand-alone scheme, or tailored to fit in with an existing menu of employee benefits. Either way it offers significant savings to both the organisation and the staff who opt to take part in the scheme.

The Rising Cost of Parking

For companies based in our town or city centres, the cost of car parking for employees is inexorably rising. The Guardian reports a 30 per cent rise in city centre parking charges over the last 12 months. Assuming you do not have the space at your premises to provide your staff with a free parking space, they have to pay to park elsewhere and suffer the rising costs that come with that.

The Guardian reports a 30 per cent rise in city centre parking charges over the last 12 months.

As a result, your staff are hit in the pocket. Human resources experts suggest this is already resulting in lower employee morale and, in many cases, an increased level of staff turnover.

How the Workplace Parking Scheme Works

The scheme is an arrangement between the company, HMRC and those employees who choose to take part. A specialist employee benefits provider will help you set up the scheme and assist you in administering it on an ongoing basis. Workplace parking is a 'salary sacrifice' scheme whereby participating employees agree to a variation in their contract to allow you to deduct an agreed amount of money from their salary each month which will be used to pay for a parking season ticket at a location near the workplace.

The big advantage of this arrangement for the employee is that the salary sacrifice deduction is made without any tax or employee's national insurance being applied to it. This offers the employee a significant saving which, together with the additional savings a car parking season ticket offers, provides them with a very attractive package.

There are enormous benefits for you as an employer too. The scheme is simple to set up and run and, because the proportion of salary that your employees commit to car parking charges through salary sacrifice is free of employer's NI, you make a substantial cost saving too.

There are enormous benefits for you as an employer too.

What are Other Employers Saying About the Scheme?

The experience of employers who have signed up for the workplace parking scheme is universally positive. The relief the scheme gives on employer's NI provides a net cost-saving even after the scheme provider's fee is deducted. This is a saving which, for many employers, can be in the thousands of pounds annually.

But what employers have also noticed since they joined the scheme is that employee satisfaction has increased. Employees like the fact that they are saving money on their workplace parking charges and appreciate the fact that it is their employer who has helped them achieve this. Human resources managers report lower staff turnover which, in turn, retains experienced staff and lowers the employer's recruitment and training costs.

In short, everyone gains.

Author: Eoin Olivers photo

Author: Eoin Oliver

Eoin Oliver is a web designer and blogger with six years of experience writing content and designing graphics for clients large and small. For the past three years Eoin has been focused on researching and writing about the childcare voucher scheme. When not hard at work, Eoin can be found in the company of his 4-legged companion Layla.

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