Last updated: 4th August 2022 at 11:26am
The following article was written by Martin Moore, Employee Benefits Consultant, Beckett Financial Services.
With the rising cost of living and a huge shift in employee expectations in the last decade, businesses are increasingly expected to help employees save money, promote emotional resilience, and support the financial, mental, and physical wellness of their staff.
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This can get expensive and quickly too. However, Cycle to Work schemes can lend cost-efficient support to these momentous asks… Businesses are setting them up in droves, here is why:
1. Employees save money
Purchasing a bike through a Cycle to Work scheme will typically save employees 33% – 43% of the cost of their package. This is because this benefit takes advantage of salary exchange, a reduction in their gross pay meaning the employee does not pay tax or national insurance on the exchanged amount. On top of this, the cost is spread over 12 months, reducing the anxiety of an immediate outlay. Now if we factor in the ever-increasing cost of fuel, employees can save a significant amount per year by commuting via bicycle, (some estimates place this saving at up to £2,000 per year!) employees quickly see a return on their investment.
2. Saves the business money
There is no initial outlay to set up a Cycle to Work scheme, simply choose your provider and work with them to implement your agreement. Once an employee chooses their package, the business fronts the cost of this with the employee repaying the business over a 12-month period. Now, factor in salary exchange. As the employee is having a deduction from their gross salary to recover the costs of the cycle purchase, the business is saving on Employers’ National Insurance contributions. Therefore, for every £1,000 spent on Cycle to Work, the business saves £150.50 in Employers’ National Insurance!
3. Healthier, happier employees
Aside from the obvious physical benefits, cycling helps us control the hormones responsible for stress, which can help maintain employee wellbeing. With workplace stress and anxiety on the rise boosting our emotional resilience can be critical for our long-term mental health.
The ONS site musculoskeletal and mental health issues among the top-rated reasons for employee absence in the UK, supporting employees to healthier minds and bodies helps bolster your workforce and increases resilience.
With employees returning to the workplace in numbers, a Cycle to Work scheme offers clear benefits to employers, and their staff and represents a small portion of an increasing surge to provide workplace wellbeing packages.
Beckett Financial Services offer comprehensive Employee Benefits Consultancy services, complimenting your existing HR policies and culture with a focus on benefits provision, tailored implementation and ongoing support and employee education.
To help establish your employee wellbeing plan, please contact firstname.lastname@example.org