Case Study: How Mon Motors used employee car benefit to improve their attrition rates
As well as significant savings to the business, the scheme has delivered hundreds of thousands of pounds of employee savingsTags: Automotive Consultancy ECOS Taxation
Boosting staff retention using an Employee Car Ownership Scheme
Established in 1971, Mon Motors are one of the largest groups in South Wales and the West of England. They are a family run company whose values are built on providing an exceptional customer experience and building long-lasting customer relationships.
To do this, Mon Motors believes that they need to focus on their own people. The company ethos is that by retaining brand experts and experienced staff, the customer journey will be improved.
They implemented a CBS Employee Car Ownership Scheme (ECOS) in 2010 for their senior management team, as well as opening up the scheme to the wider workforce who wouldn’t normally be entitled to a company car.
The company were looking to reduce their employee turnover, which was causing them to lose vital experience and key skillsets. Within the Automotive sector, staff attrition rates are high at anything between 30-50%. Mon Motors wanted to improve employee loyalty and reduce attrition rates to around 15%.
Furthermore, Mon Motors were looking for a solution for their company car drivers, who were paying a significant amount in company car tax, driving demonstrator vehicles.
An ECOS from CBS was implemented as part of an enhanced rewards package for all employees, to raise Mon Motors’ employer profile and improve their staff retention, supporting them to future-proof their business from a people and skills perspective.
The scheme was also used dynamically to deliver a cost effective equivalent to a pay rise for senior employees, simply by offering them a saving on their scheme car in comparison to a company car or their existing private arrangement.
There was fantastic uptake from both need and perk drivers, with 120 vehicles across both of the successful schemes. Mon Motors have attrition rates at well below the industry average, and believe this is a vital aspect of their customer centric approach.
Mon Motors also replaced demos with scheme vehicles, allowing them to cost-effectively show the full model mix as well as creating a stream of higher spec, desirable used car stock.
Gavin Cleverly, Managing Director at Mon Motors described the results of the scheme;
“Here at Mon Motors we take great pride in being a business that is not only highly customer centric but also places great importance on making its employees feel valued, rewarded and proud to represent the Mon Motors brand.
“The product offers employees who would ordinarily drive higher specification vehicles as demonstrators and be subject to high levels of company car tax the opportunity to navigate this financial burden. Since we launched ECOS in 2010 and as well as significant savings to the business on Class 1A NI, the scheme has delivered hundreds of thousands of pounds of employee savings every year and continues to be firmly embedded in our benefits and rewards package.
“Looking to the future, we plan to continue to keep attrition rates as low as possible by dovetailing a CBS solution such as Flexi, with our overarching HR goals.”