Research from Tusker, a salary sacrifice car scheme provider, found that 43% of employers rated salary sacrifice car schemes as high or very important.

The research revealed that companies prioritised benefits like company pensions, sick pay, hybrid working, mental health support, and private medical insurance.

Tusker also found that 31% of HR and benefits professionals saw employee experience as the main focus, while 20% said recruitment and being an employer of choice was a major aim.

Cheryl Clements, head of business development at Tusker, said: “With only 14% of employers expecting to offer pay rises above 4% in 2025, the pressure is on to provide benefits that make a real impact.

“Salary sacrifice car schemes, particularly those that offer electric vehicles (EVs), are increasingly being seen as a cost-effective way to deliver value to both employers and employees.

“They help employees manage their budgets more easily while offering a benefit that genuinely improves their lives.”

Additionally, the research revealed that 63% of employers who run salary sacrifice car schemes do so to make electric cars more affordable to staff.

Employers also benefit, with 38% citing National Insurance (NI) contribution savings as a main reason, while 37% said it was a cost-neutral benefit that needed no extra budget.

Meanwhile, around 47% of employers reinvest NI savings into other benefits or business areas and 23% share the savings with employees by subsidising vehicle costs.

Clements added: “As employers look for smarter ways to engage and retain their people, benefits need to be both meaningful and sustainable.

“Salary sacrifice car schemes tick both boxes, offering employees greater financial security while supporting greener choices.

“It’s a benefit that truly reflects the changing priorities of today’s workforce.”

She said: “We are proud to offer flexibility with fixed-cost motoring, lifestyle protections, and the ability to hand cars back during life events such as resignation or redundancy, removing barriers for both employers and employees.”