The Employers Guide To Cycle to Work. How Your Business Benefits And The Simple Steps To Getting Your Own Scheme Today

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1 The Employers Guide To Cycle to Work How Your Business Benefits And The Simple Steps To Getting Your Own Scheme Today

2 Cycle to Work: A Vital Ingredient For Wellbeing And Performance In 2014, for the first time, an annual survey of employee benefits professionals found that encouraging wellbeing ranked in the top three outcomes from benefits provision. This is because organisations now realise that help staff stay fit and healthy has positive benefits for them as individuals as well as tangible business benefits like fewer sick days, better performance at work and higher all-round resilience. Of all the measures you can take to build a healthy workplace, there is an increasing body of research which shows that influencing the way your people travel to work away from car to more active forms of travel is one of the most important things you can do. Chief among these is the positive impact of bike commuting. 2

3 How Cycling To Work Benefits You And Your People 1) Lower Sickness Absence in 2010, research from the Netherlands showed that employees who Cycle to Work took on average 1.3 days fewer sick days than those who didn t. (1) 2) Help Reducing The Cost Of Living cycling to work can help save money on the rising cost of fuel and train fares. Even a partial bike commute can save on tram, tube and parking costs. Most importantly a Cycle to Work scheme gives employees up to 42% off the price of a new bike or accessories. 3) Healthier Employees even a small amount of bike-commuting helps to meet 150 minutes of weekly exercise advised by the chief medical officer and contributes to a reduction in risk of long term health issues such as heart disease, obesity and diabetes. (2) 4) It s A Highly Valued Benefit Cycle to Work is the second most popular salary sacrifice benefit after Childcare Vouchers; just under two thirds (62%) of employers offer it in the UK. (3) 5) Increasing Bike Commuting some 98% of employees say they would encourage others to use the scheme. (4) 6 Reducing Environmental Impact 87% of employers say Cycle to Work schemes are important in reducing their carbon footprint. They also reduce the impact of commuting by reducing pressure on workplace parking and traffic. (4) 7) Brighter, Happier People An eighteen year study from the University of East Anglia found that bike-commuters had an increased sense of wellbeing compared to car commuters. (5) This comes after a 2008 academic study in the US found that stressful car commuting increased hostility and obstructive behaviour in the workplace - bike commuting can help reduce the incidence of these behaviours. (6) 3

4 Getting Your Organisation Cycling To Work 1) Access Get A Cycle to Work Scheme Up And Running Cycle to Work schemes allow you to help your employees get a new bike at vastly reduced costs with no additional expense to you the employer. All you need to do is pick a Cycle to Work scheme provider who will help you set up a scheme which is compliant with the rules set by HMRC. A Cycle to Work scheme provider will also ensure the administration runs smoothly but this isn t the only thing you need to think about in your planning at this stage. Key areas to consider are: Choice does your provider give access to high quality cycle retailers who offer a good range of cycling equipment in the right geographical area for your business? Setting up a scheme has your provider got experience in helping businesses of your size and in your sector? What successful case studies and references can they provide as evidence of service quality and administration? Communication what will your provider do to help you promote your scheme to your employees? Wider benefits can your provider help you offer other health and wellbeing benefits which fit with what you are trying to achieve? 2) Support Help Employees Keep A HealThy Habit Making it easy for employees to Cycle to Work is fundamental to encouraging and maintaining levels of bike commuting. You can help reduce barriers and objections to cycling with small investments which make a big difference to those who Cycle to Work including: Security a dedicated area with good lighting where bikes can be stored safely preferably under cover. Lockers places to keep wet or damp clothing post-commute. Changing facilities addition of a shower cubicle. Bike repair sourcing someone who can come on site to help with running repairs. 4

5 3) Inspire Increase participation in your business Continuing support for cycling to work from you the employer helps promote bike commuting to existing employees and new ones. You can inspire participation through: Cycle to Work days using the annual awareness day in early September or the Cycle to Work week in the third week of June to get more employees into the habit of cycling. Training providing lessons or support for those who would like to Cycle to Work but need to get their confidence levels up. Buddy scheme helping new cyclists find their routes into work by teaming up with other cyclists who live in similar areas, know the route, and can provide tips and advice for novices. Reward for regular cyclists who save you money on workplace parking. Incentives and competitions not just for the most resilient cyclist but for new starters, evangelists and other kinds of bike commuters. Reducing Sick Days Lost Through Bike Commuting Some 744,000 employees currently commute to work according to the results of the 2011 Census which were published earlier this year. (6) There are around three million cyclists who are currently employed in the UK, according to Sky s Gross Cycling Report commissioned from the LSE in the same year. (7) This means there is a potential bike commuting gap of around two and a quarter million working adults who cycle for pleasure but don t Cycle to Work. Based on the saving of 1.3 sickness days per bike-commuter found in the 2010 Netherlands study into cycling and sickness absence, encouraging one third of leisure cyclists to start regularly using a bike for some or all of their commute to work, would save just under one million sick days in the UK each year. A Cycle to Work scheme is instrumental in recruiting new bike commuters if you start a scheme, one in two of those using it (54%) will be new to cycling to work. (8) Small and medium businesses have the most to gain from Cycle to Work schemes as they are significantly under-represented among scheme participants: nearly half (43%) of the current 32,000 employers operating the scheme are large employers. (8) Employer involvement in encouraging cycling to work is critical to realising gains in health and wellbeing. The problem is that even if we matched last year s rate of adoption, it would take four years to save half a million sick days. 5

6 Cycle to Work Schemes How They Work And How To Set One Up Setting Up A Scheme Is Quick, Easy And Completely Free 1. Choose your provider, who will handle a majority of the administration for you. 2. Promote your scheme to employees. 3. Employees choose their bike and/or safety equipment up to the value of 1000 and make their application. 4. Employees sign a hire agreement, with payment coming out of their gross monthly salary that means they can save up to 42% on the cost through income Tax and National Insurance savings that would otherwise be due. Employers make a saving on employer NI on the amount of salary sacrificed. 5. The bike and/or safety equipment can either be delivered to or collected by the employee. 6. At the end of the loan period the employer either transfers ownership of the bike to the employee or the employee can buy the equipment, according to HMRC guidelines. Any employer of any size can get a scheme up and running. Not only is a highly valued employee benefit, but it is better than cost neutral creating employer NI savings for your organisation. To set up a scheme today, call us on to get started. 6

7 Edenred Can Find Your Perfect Partner Setting Up A Scheme Is Quick, Easy And Completely Free We ve teamed up with two of the UK s top Cycle to Work providers to offer you even more choice for your employees and launch a the scheme that s right for you. Both our partners also offer additional savings on bike and equipment for even more added value. Cycle Solutions Employees can choose from 140 bike brands through the online shop, which includes free delivery to UK mainland and an 18 month warranty. Cycle Solutions can provide a complete, managed, end-to-end solution whilst maximising staff uptake of the scheme through high-quality marketing and promotion. Halfords Employees can choose their bike from any of Halfords store across the UK, including over 400 independent stores within their network. Dedicated account managers, and a fast employee application system - which can take as little as one day. If you choose to work with Edenred and one our partners, there are extra benefits to enjoy: Experience We are the pioneers of salary sacrifice benefits in the UK. This doesn t just cover Cycle to Work schemes but includes Childcare Vouchers which we brought to the UK market 25 years ago. Access to wider reward and benefits solutions As a business with a range of employee benefits, we can help you build a wider reward and benefits programme to engage and motivate your employees. This includes Childcare Vouchers, employee discount schemes, recognition schemes and much more. To find out how we can help you, your business and your people, get in touch today: Call us: us: Visit us: 7

8 Zodiac Aerospace Reach New Heights With The Launch Of Their Cycle to Work Scheme Zodiac Aerospace Worked With Edenred To Implement a Cycle to Work Scheme In Partnership With A Third Party Specialist Provider. They were very impressed with the huge amount of choice available in terms of bike brands and accessories. The scheme launched alongside other new benefits such as Employee Savings and Childcare Vouchers. Edenred provided an engaging and creative communications programme to promote the new benefits to staff, which included a regional launch event day. The Cycle to Work partner came along and brought with them a selection of sample bikes and were all set up to take applications on the day which created a huge buzz amongst staff. Zodiac Aerospace were extremely pleased with the uptake of the scheme which had over 10% of employees taking part, which marks a huge success. Gareth Welch, Payroll Manager for Zodiac Aerospace says It s a really highly valued benefit for employees and we are proud to be supporting health and wellbeing, as well as doing our bit for the environment. The partnership between Edenred and the provider has run very smoothly with an excellent level of service quality and administrative support. 8

9 References 1 - The association between commuter cycling and sickness absence August Report from the all-party commission on physical activity March The Benefits Research Employee Benefits Magazine -May The Healthy Commute Cycle to Work alliance February Impact of commuter stress on workplace aggression Journal of Applied Social Psychology - September Does active commuting improve psychological wellbeing? Journal of Preventive Medicine September Analysis of bike commuting Office for National Statistics March British Cycling Economy London School of Economics August Cycle to Work alliance News releases on cycle-to-work scheme take-up 9

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