- 31% of HR and benefits professionals say improving employee experience and engagement is their top priority for 2025
- 43% of employers rate salary sacrifice car schemes as high or very important to their benefits strategy
- 38% cite National Insurance (NI) contribution savings as a major reason for implementing a scheme
- 63% of employers offering salary sacrifice car schemes do so to make electric vehicles more affordable for employees
London, UK, 28 April 2025 – As the UK braces for a tighter labour market, cost-of-living pressures and rising employer costs, improving employee experience and engagement ranks as the leading employee benefit priority for 2025, according to the new ‘Driving Loyalty Through Electric Cars’ report from salary sacrifice car scheme provider, Tusker.
The study explores the benefits that employers believe employees value most. Company-contributed pensions, paid sick leave, and flexible and hybrid working all feature prominently, while mental health and wellbeing support and private medical insurance are also appreciated.
The study reveals that 43% of employers now rate salary sacrifice car schemes as either high or very important, placing them firmly in the spotlight as a compelling, tax-efficient way to support staff wellbeing, sustainability goals and retention strategies.
This sentiment was also chosen as the most important focus area by 31% of HR and benefits professionals, with 20% identifying that supporting recruitment and becoming an employer of choice is also a major focus.
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.”
Another key finding from the report is that 63% of employers who offer salary sacrifice car schemes do so with the aim of making electric EVs more affordable for their employees. With rising living costs and a growing appetite for sustainable transport, EV salary sacrifice schemes rapidly become a highly valued and cost-effective benefit, helping employees drive new, fully insured and maintained electric cars for a fixed monthly amount – often at significantly reduced costs thanks to tax efficiencies.
From the employer’s perspective, 38% of organisations cite National Insurance (NI) contribution savings as a major reason for implementing a scheme, while 37% view it as a cost-neutral benefit, requiring no additional budget to deliver meaningful value to staff. These savings create a win-win scenario: employees access a desirable benefit, while employers make financial gains without added strain on resources.
Organisations are also choosing to reinvest the NI savings they receive in strategic ways. Nearly half (47%) of employers channel these savings back into the business or other employee benefits, helping broaden their overall reward offering. Meanwhile, 23% choose to share the savings directly with employees, subsidising the cost of vehicles further and making the benefit even more accessible, especially for those on lower salaries.
Employers like Landsec have seen significant engagement from staff following the introduction of EV schemes. After launching the scheme in 2024 in response to employee demand, the company reported a 26-point increase in staff saying their benefits package met their needs. With around 30% of eligible employees engaging in the scheme within six months, Landsec’s experience highlights how the right benefit can enhance both employee satisfaction and sustainability efforts.
Clements concludes: “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. 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.”
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Tusker is the UK’s leader in salary sacrifice cars. Part of Lloyds Banking Group, it has more than 16 years’ experience in offering an affordable way for employees to drive a new, fully insured, and maintained car. Its scheme, which is available to over 2 million UK employees, offers a range of options, from pure electric cars to hybrids and even traditional petrol and diesel vehicles. It provides a tailored scheme for organisations’ individual needs.
Tusker’s survey was completed in January 2025 and had 100 respondents.
