Boosting staff retention in a challenging market
Employee Car Ownership Schemes can keep employees feeling genuinely valued and motivated in challenging market conditionsTags: Automotive ECOS Taxation
Enhance rewards, save money and keep your best people
2018 proved to be a challenging year for the motor retail sector as WLTP and Brexit uncertainty impacted stock availability and consumer confidence when it came to buying a new car. The result was another year of falling new car registrations and in turn downwards pressure on profits. This impact of course extends to dealer employees, with external factors influencing their ability to fulfill earnings potential.
In response, dealers shifted their focus to used cars, as both demand and used values remained strong, providing a profit opportunity on sales. After-sales also had a key role to play in delivering profitability and dealers that performed well in these areas were resilient in challenging market conditions.
This market shift means there is a consistent demand for skilled employees in key areas, with dealers looking to boost staff rewards to retain and attract the best people. This can be evidenced in the 2018 BDO Motor Salary Survey which shows that overall;
‘Once management pay is excluded, there has been an average 3% increase in dealer pay, with aftersales employees seeing increases above this average.’
This shows that despite the new car market being down, salaries have increased above the rate of inflation delivering a real term pay increase as dealers strive to retain their best talent.
To help manage this challenge, Car Benefit Solutions has worked closely with automotive manufacturers and their respective dealer networks to develop market leading solutions that allow dealers to enhance employee rewards, save money, gain incremental new vehicle registrations and generate valuable used car stock in the process.
Tax robust and compliant, CBS products are tailored to the needs of each business and can be used dynamically to keep dealer employees feeling genuinely valued and motivated whilst moving closer towards business goals.
Employees currently entitled to a car benefit, who choose a CBS product as an alternative do not pay company car tax liabilities, and no employer Class 1A NIC applies. Future increases in company car benefit tax also do not apply. The CBS product delivers business savings through the provision of a rewarding staff benefit.
The CBS all employee product offers affordable access to popular models, creating increased brand affinity alongside flexible repayments that can be tailored to meet business objectives. Collectively this encourages dealership-wide staff loyalty and retention, while simultaneously increasing the business’s profit opportunity.
A quick look at dealers with a high rating on Glassdoor and Best Companies underlines that those who have implemented CBS products alongside other workplace engagement strategies are recognised and celebrated as setting a benchmark for the industry.