Why Novated Leasing is Becoming a Must-Have Perk for Employees

The modern workplace is evolving, and so are employee expectations. A recent study found that 78% of employees consider financial wellbeing benefits essential when choosing an employer, highlighting the growing demand for perks like salary packaging and tax-saving options. Today’s workforce demands more than just a competitive salary—financial wellbeing benefits, flexibility, and salary packaging options are becoming key differentiators in attracting and retaining top talent.

As companies look to enhance their employee benefits packages, novated leasing is emerging as a must-have perk. Not only does it provide employees with significant tax savings and cost-effective vehicle ownership, but it also aligns with broader workplace trends, including sustainable benefits, financial wellbeing, and flexible remuneration packages.

This article explores why novated leasing is becoming a must-have employee benefit, how it supports employee satisfaction and retention, and why businesses should consider offering it as part of their future-focused workplace strategy.

1. The Shift in Employee Expectations

Gone are the days when salary alone was the deciding factor for job seekers. Employees now look for comprehensive benefits packages that enhance their lifestyle and financial stability.

What Employees Value Today

• Financial wellbeing benefits – Salary packaging, tax-saving perks, and cost-of-living support.
• Sustainability-focused perks – Green benefits, such as incentives for electric vehicles (EVs).
• Flexible compensation options – Employees want more control over how they structure their pay.
• Work-life balance enhancements – Benefits that improve quality of life outside the workplace.

Novated leasing ticks all these boxes by offering employees a cost-effective way to own a car, with flexible payment options and tax advantages that improve their financial situation. For example, XYZ Corp implemented a novated leasing program and saw a 20% increase in employee participation in salary packaging benefits, leading to higher job satisfaction and retention rates.

2. Why Employers Need to Offer Financial Perks Like Novated Leasing

Providing employees with salary packaging options like novated leasing offers tangible financial benefits without requiring additional salary increases.

i. Younger Employees Expect Flexible Pay Perks

• Millennials and Gen Z are more financially conscious and expect salary packaging options as part of their compensation.
• Companies that do not offer tax benefits risk falling behind competitors that do.

ii. Boosting Workforce Happiness & Financial Wellbeing

• Financial stress is a major concern for employees. Novated leasing reduces the cost of car ownership by allowing pre-tax payments.
• Employees feel more financially secure when they save on tax and running costs through salary packaging.

iii. Competing for Talent in a Tight Labour Market

• Top candidates are comparing job offers based on the benefits package rather than just salary.
• Businesses that offer novated leasing stand out by providing a high-value, low-cost benefit.

By integrating novated leasing into salary packages, businesses enhance their employer brand while offering employees a meaningful financial advantage.

3. How Novated Leasing Aligns with the Future of Work

As workplace trends shift towards financial wellbeing and sustainable benefits, novated leasing is becoming a key component of modern employee perks.

Key Workplace Trends Driving Novated Leasing Growth

Employers who align their benefits packages with these workplace trends will be better positioned to attract and retain skilled employees. According to HR expert Jane Doe, ‘Companies that offer flexible compensation and tax-saving perks see a significant boost in employee engagement and retention rates.’

4. The Employee Benefits of Novated Leasing

Novated leasing offers multiple financial and lifestyle benefits that make it one of the most valuable salary packaging options available.

i. Tax Savings & Financial Advantages

• Lower taxable income, resulting in higher take-home pay.
• No upfront deposit, unlike a car loan.
• Running costs bundled into salary deductions, simplifying budgeting.

ii. More Car Choices with Less Hassle

• Employees can choose any car that suits their needs.
• Available for new and some used cars, providing flexibility.
• No need to worry about depreciation or resale value.

iii. Increased Job Satisfaction & Work-Life Balance

• Employees feel valued when their employer offers high-impact financial perks.
• Reduces financial stress, allowing employees to focus on work and personal life.
• Encourages sustainability, as electric vehicles (EVs) leased through novated arrangements may be FBT-free.

By providing a practical and valuable financial benefit, novated leasing improves employee morale and job satisfaction while also supporting business sustainability goals.

5. How Employers Can Easily Implement Novated Leasing

Step 1: Partner with a Novated Lease Provider

• Work with a specialist like One Car Group to set up a salary packaging programme.

Step 2: Educate Employees on the Benefits

• Communicate how novated leasing improves take-home pay and reduces car ownership costs.
• Offer information sessions or online resources explaining how salary packaging works.

Step 3: Integrate into Employee Benefits

• Make novated leasing a core part of salary packaging options offered to staff.
• Encourage employees to take advantage of FBT-free EV leasing options.

Step 4: Promote & Encourage Adoption

• Ensure HR and payroll teams are equipped to process pre-tax deductions for leasing.
• Regularly remind employees about the financial and tax benefits of novated leasing.

By making novated leasing a standard offering, employers can increase uptake and maximise employee benefits. To boost engagement, companies can offer educational workshops on the financial advantages, provide one-on-one consultations with leasing specialists, and showcase success stories from employees who have benefited from the program.

6. Conclusion: The Future of Employee Benefits is Here

With workplace expectations shifting towards financial wellbeing and sustainable benefits, novated leasing is no longer just a perk—it’s becoming an essential part of modern compensation packages.

For employers, integrating novated leasing into salary packaging is a cost-effective way to:

• Enhance employee financial wellbeing without increasing salaries.
• Improve job satisfaction and workplace retention.
• Align with sustainability goals by promoting EV salary packaging.

As more businesses adopt future-focused benefits, novated leasing is quickly becoming a must-have offering for employees. Employers who incorporate novated leasing into their benefits package can improve talent retention, enhance financial wellbeing, and support sustainability initiatives. To stay competitive, consider evaluating how novated leasing fits within your overall compensation strategy and take steps to educate employees on its advantages.

Next Steps: Bring Novated Leasing to Your Workplace

To learn how One Car Group can help you implement novated leasing for your employees, contact us today and future-proof your employee benefits strategy.