Employee benefits can be a valuable tool for employers. They can help to attract and retain top talent, improve employee morale and productivity, reduce employee turnover, and improve the company’s image.
Employee benefits can also help improve employee health and well-being, which can lead to several other benefits for the employer, such as reduced absenteeism and increased productivity.
While the type of employee benefits that an employer offers will vary depending on the size of the company, the industry, and the location, some of the most common employee benefits include health insurance, retirement plans, paid time off, and sick leave.
Other common benefits include dental insurance, vision insurance, life insurance, disability insurance, and tuition reimbursement. However, one perk is rapidly becoming the benefit of choice – cycle to work.
What is a cycle to work?
Cycle to Work is a government-backed scheme that allows employees to save money on the cost of buying a new bike and cycling equipment. A number of different providers, including Cyclescheme, Extras, Halfords Bikes to Work, and Evans Cycles, administer the scheme.
To use the cycle-to-work scheme, employees need their employer to be eligible. Once the employer has their application approved, the employee can then choose a bike from one of the 2000+ participating local or national retailers, including brands such as Specialized, Trek, Giant and Scott, to name a few.
The employer will then pay for 50% of the cost of the bike, and the employee will pay the remaining 50% through salary sacrifice. Salary sacrifice means that the employee does not pay tax or National Insurance on the cost of the bike.
Employees can use the cycle-to-work scheme to buy any type of bike, including road, mountain, and hybrid bikes. They can also use it to buy cycling equipment, such as helmets, lights, and locks.
The scheme is a great way for employees to save money on the cost of buying a new bike and cycling equipment. It is also a great way for employees to improve the culture of wellness by cycling to work.
How does Cyclescheme benefit employees?
Here are some of the benefits of the cycle-to-work scheme:
- Financial savings: The cycle-to-work scheme can save employees a significant amount of money on the cost of buying a new bike. For example, a £1,000 bike can be purchased for just £500 through Cyclescheme. This is because the employer pays for 50% of the cost of the bike, and the employee pays the remaining 50% through salary sacrifice. Salary sacrifice means that the employee does not pay tax or National Insurance on the cost of the bike.
- Health and fitness: Cycling is a great way to stay fit and is a great stress reliever. Regular cycling reduces stress through the release of endorphins and reducing cortisol. By starting the day with a cycle commute, employees will be able to approach their work and home life with a clear head and focused mindset. Cycling to work not only helps improve mental health but, as a form of aerobic exercise, contributes to stronger cardiovascular health, increased stamina and overall physical fitness. This translates to higher energy levels, improved concentration, and reduced fatigue in the workplace.
- Environmental benefits: Cycling is an environmentally friendly and sustainable way to travel. It produces zero emissions and can help to reduce air pollution, improve air quality and reduce traffic congestion. Cyclescheme can help employers to meet their sustainability goals and improve their public image.
How does Cyclescheme help employers?
Cyclescheme can benefit employers in a number of ways, including:
- Reduced absenteeism: Employees who cycle to work are less likely to be absent from work due to illness. This is because cycling can help to improve cardiovascular health and reduce stress levels.
- Increased productivity: Employees who cycle to work are more likely to be productive at work. This is because cycling can help to improve mental alertness and concentration.
- Improved employee morale: Cycling to work has been proven to make employees more satisfied with their job and have a positive attitude toward their employers. This is because cycling can help improve mental and physical health and provide a sense of achievement.
- Reduced carbon footprint: Cycling produces zero emissions and can help to reduce traffic congestion. Businesses can reduce their carbon footprint and improve their environmental credentials by encouraging employees to cycle to work.
- Improved public image: Businesses that offer Cyclescheme to their employees can improve their public image. This is because cycling is seen as a healthy and environmentally friendly way to travel. By offering Cyclescheme, businesses can show that they are committed to the health and well-being of their employees and the environment.
- Employers save, too: Businesses that offer the scheme recover the bike’s full cost and save up to 13.8% of its value in NICs.
Why cycle to work is an employee benefit of choice?
The cycle-to-work scheme has become a popular employee benefit for several reasons.
There is a growing trend toward promoting active lifestyles and encouraging employees to adopt healthier habits. Cycling is a great way to achieve this, and many employers are now offering the Cyclescheme benefit to help their staff purchase bikes and cycling accessories at a reduced cost. These well-being benefits are also extremely attractive to potential candidates and can help improve recruitment and retention.
Not only are the savings for the employees and employers huge, but the scheme is also easy to implement and manage, with the providers handling all of the administrative tasks. This means that employers do not need to dedicate significant time or resources to the benefit, making it an attractive option for businesses of all sizes.