Novated leasing is an attractive option for employees, offering them the pleasure of owning a brand new vehicle of their choice while keeping more money in their pocket each payday. And it can be an attractive tool for business owners who recognise the role that novated leases play in attracting, rewarding and retaining great staff.
Let's take a look at five ways novated leasing can boost your business:
1. A tool in salary negotiations
Attracting quality candidates is a tough job for any Human Resources Manager. Offering salary sacrificing options such as a novated lease as part of a salary package can help steer the right candidate your way and help your business become an employer of choice.
Your ideal candidate gets the benefit of unrestricted use of a new or used vehicle and the simplicity of paying for the total cost of ownership in one simple payment from their pre-tax salary every payday. And you can feel safe in the knowledge that you’ve been able to offer an additional employee incentive, without any expensive or time consuming outlay.
2. Reward your loyal staff
Once you’ve found that great candidate, you want to keep them, right? The cost of hiring, training and assimilating new staff into your team can be a drain on resources that few businesses can afford. While great staff members are worth their weight in gold, expensive staff retention packages and benefits schemes can quickly eat into your company profits. A novated lease allows you to reward your employees for their hard work and loyalty without putting a dent in your bottom line.
3. Save on Payroll Tax
Your employees won't be the only ones to enjoy the tax benefits that come with novated leasing a vehicle. Since novated leasing reduces your employee’s taxable income you'll also be paying out less money in Payroll Tax – now there's a win-win situation if ever there was one!
4. Reduce administration headaches
Many employers are hesitant to set up a salary packaging scheme as they are concerned about the amount of administration time required. However, setting up your new novated leasing program couldn’t be simpler. A quality novated lease provider will help you through the set up process with your HR and payroll departments. They may even help you promote and market your new initiative amongst your staff!
5. Go risk free
There is no risk to your organisation with novated leasing. The lease is in your employee’s name – if they leave their employment, they take the lease with them, leaving you with no liability or unused assets. This also means that novated leases are considered ‘off balance sheet’ as the vehicle is neither classified as an asset or a liability.
When you add up all the benefits novated leasing just make sense for your employees and your business, so why not contact Fleetcare today on 134 333 and discover how a Fleetcare novated lease can give your business that vital competitive edge?