6 Reasons to offer Novated Leasing to employees
Attracting, rewarding and retaining quality staff can be an ongoing challenge for many organisations – how can you offer your existing employees added benefits to encourage them to stay, and entice superstar new recruits to your business? One way to obtain and keep your staff is by setting up a Novated Lease program and offering salary packaged vehicles to employees.
There are many benefits for both employees and employers, so we decided to outline a few of the key reasons to set up a Novated Lease programme at your organisation.
1. Employees get a new car that they don’t have to use for business
Giving employees the option to lease a vehicle as part of their salary package means that they can have a brand new vehicle and pay GST-free instalments. The nature of Novated Leasing also means that employees do not need to use their vehicle for business purposes, and they can lease any new or used vehicle of their choice. This flexibility allows employees the independence they would get buying a car in their own merit, with the added benefits of salary packaging.
2. Increase your employees’ net income
Arguably the biggest benefit of Novated Leasing for employees is that, as they pay their vehicle instalments and running cost out of their pre-tax-salary, this can actually save them tax and increase their disposable income. So in many senses this is the same as giving your employees a pay rise and a new car – who would say no to that?
3. It is the perfect attraction and retention tool
It can be challenging to find new ways of retaining and motivating quality staff, but Novated Leasing is simple to offer and provides real benefits to employees. Offering employees the chance to enjoy a new car and pay less tax is a fantastic incentive for staff. Novated Lease programmes can be set up for any sized business, from SME’s to large corporations, so any organisation can offer this benefit.
4. There is no risk to your business
There is no risk to an employer when setting up a Novated Lease programme as the lease only applies for as long as the employee stays with your company. Your Novated Lease provider will give you access systems and end of service support, so that changes are easy to manage and simple to resolve. Because vehicles supplied to employees through Novated Leasing are not company property, your business assumes no financial risk.
5. It is free for organisations to set up Novated Leasing
It is completely free for employers to set up a Fleetcare Novated Lease program at their business. There are no setup, administration or support fees, so setting up your Novated by Fleetcare programme will cost you nothing.
6. It is easy to set up and manage
While many employers are hesitant to set up and promote Novated Lease programmes because they are unsure of how it works or think that too much work is involved, but this couldn’t be further from the truth. Most Novated Lease programmes are easy to implement, with straightforward administration systems for your HR and payroll departments. These systems are also supported by your Novated Lease provider’s team of experts.
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