Cafeteria plan: flexible wage package as leverage in the “war for talent”

In today's competitive job market, recruiting and retaining talented employees is a challenging task. This often results in a real “war for talent”. Companies are looking for creative ways to differentiate themselves and attract potential talent. A popular strategy is to offer a cafeteria plan as part of the overall compensation structure. This plan gives employees the freedom to put together their own benefits package, choosing from options such as extra vacation days, hardware, insurance, training options or… a lease car.

The adaptable and personal nature of a cafeteria plan appeals to applicants because it gives them the autonomy to tailor their terms of employment to their individual needs. With a cafeteria plan, companies distinguish themselves as employers. They care about the well-being of their employees and offer the opportunity to maintain a balanced work-life balance. As a result, they increase their appeal and convince talents to choose their organization.

Each cafeteria plan is unique and comes about after careful consideration. It must certainly be in line with the vision of the organization and the priorities and expectations of the employees. This is not just about a financial allowance, but is based on a clear business and HR strategy. Fleet managers benefit from the use of a cafeteria plan, where a lease car is an attractive asset for employees who normally do not qualify for a vehicle.

When choosing lease cars, it is important to map out the company vision. Based on this, you determine which models to include in the cafeteria plan. Some companies opt for a simple wage policy with one type of vehicle, while others offer a wider range of models or give employees the freedom to choose their own vehicle. This promotes employee motivation and satisfaction.

Companies are increasingly opting for greening and are switching to electric vehicles in their fleet. A green fleet is an important step towards environmentally conscious entrepreneurship and the inclusion of 100% electric vehicles in the cafeteria plan is an essential link in this.

Creating a cafeteria plan requires careful planning and communication to ensure that the plan is effective and meets the needs of employees. To draw up a cafeteria plan for lease cars as a fleet manager, it is best to work with a step-by-step plan:

1.Define the company vision: This lays the foundation for the cafeteria plan with lease cars. Identify which accents and priorities you want to have as a company.

2.Employee needs analysis: Conduct an analysis and collect feedback through surveys or conversations to understand their expectations of a lease car.

3.Select the suitable options: Based on the vision and needs, you choose the suitable options. Consider factors such as make, model, contract length and additional services.

4.Compose the offer: An attractive offer that fits the budgetary and operational possibilities of the company. Also provide flexibility and choice.

5.Communicating and promoting: Provide detailed information about the available options regarding lease cars and about the selection procedure. Promote it as an attractive condition.

6.Start-up and management: Collaborate with all parties to ensure a smooth start-up. Provide a clear management system to facilitate (necessary) adjustments to the plan.

7.Evaluation: Collect feedback and analyze impact on engagement and retention. Adjust the plan as needed to meet employee needs.

8.Need help? LeasePlan can help you from A to Z and unburden you when entering lease cars in a cafeteria plan.

It is important to know that all the features, advantages and disadvantages of a lease car cafeteria plan differ per company and depend on agreements between employer and employee.

In an upcoming blog we will take a closer look at the benefits, changes in taxation and the points for attention for lease cars within a cafeteria plan. We will keep you informed!