SAVINGS
The consultancy-led review has uncovered key savings for Royal Mail and better options for its drivers.
THREE
Royal Mail operate three company car schemes: job need (JNC), perk and salary sacrifice.
CHALLENGE
Zenith’s experts were challenged with getting under the hood of Royal Mail’s company car schemes, with an aim to provide recommendations to simplify the fleet strategy, tailor each scheme to its audience and align with Royal Mail’s business objectives.
SOLUTION
1. An unbiased analysis of job need
Royal Mail tasked Zenith with an all-encompassing review of its job need scheme to identify the financial and operational impacts and understand the cash allowance that would be needed to remain cost neutral.
2. A first-class perk scheme
The Royal Mail perk car scheme is split into four different arrangements, each offering a different package to the employee.
ELECTRIC VEHICLES
The detailed review included an analysis of the driver and business benefits of introducing electric and PHEV vehicles.
3. Giving electric the stamp of approval
Royal Mail were keen to explore the possibility of introducing electric and plug-in hybrid vehicles to the car scheme.
4. The full package
In addition to scheme-specific analysis, Zenith reviewed Royal Mail’s overall scheme designs, methodology and policies.
Results
The consultancy-led review has uncovered key savings for Royal Mail and better options for its drivers.
We are working closely with Royal Mail to implement the recommendations provided.
"At Royal Mail we operate three company car schemes: job need (JNC), perk and salary sacrifice. We asked the team at Zenith to review two of them. Zenith carried out detailed analysis to identify the actual cash allowance that we would need to provide to a driver to remain ‘cost neutral’, and to understand the cost differences of an electric vehicle versus the current diesel vehicle available under the scheme today. Zenith demonstrated that by retaining the JNC scheme and introducing electric vehicles we will benefit from saving both on fuel and NI. Drivers would also be more incentivised to choose an electric/PHEV given the significant savings available on BiK and private fuel costs, and we would achieve Class 1A NIC savings. The result of this extensive review will deliver best-in-class schemes, savings for us and better options for our drivers.”
Ian Dockerill, Employee Share Plans and Benefits Manager, Royal Mail