The Employer s Guide to Cycle to Work. Pedalling in the right direction
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1 The Employer s Guide to Cycle to Work Pedalling in the right direction
2 Cycle to Work: a vital ingredient for wellbeing and performance Employers now recognise that employee wellbeing is an issue which has a direct impact on how well their organisations perform. Helping your staff to be fitter and healthier has positive benefits for them as individuals in their personal lives as well as reducing sick days, improving engagement and performance at work and general resilience levels. Organisations are now addressing employee wellbeing in two ways: through HR policy which encourages healthy behaviours and by ensuring the benefits they provide for employees support wellbeing. Wellbeing ranked in the top three outcomes from benefits provision In 2013, for the first time, the annual Employee Benefits Magazine research found that encouraging wellbeing ranked in the top three outcomes from benefits provision. As more and more employers put measures forward this year to help improve and protect the physical health of their employees, an increasing body of research over the last five years shows Cycle to Work schemes have an important place in the benefits mix as a way of supporting employee wellbeing and improving business performance. 2 edenred.co.uk/ehub
3 The Benefits of Cycle to Work Lower sickness absence research from the Netherlands showed that employees who cycle to work took on average 1.3 fewer sick days than those who didn t. (1) Helps reduce 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 47% off the price of a new bike and/or safety equipment. Healthier employees even a small amount of bike commuting helps meet the 150 minutes of weekly exercise advised by the chief medical officer, contributing to a reduction in risk of long term health issues such as heart disease, obesity and diabetes. (2) 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) Increases cycling to work culture some 98% of employees say they would encourage others to use the scheme. (4) Reduces 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) Brighter, happier people An 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. (5) 3 edenred.co.uk/ehub
4 4 edenred.co.uk/ehub
5 Tips for launching a successful Cycle to Work scheme in your organisation This three point plan will help your business maximise all the potential business, health and wellbeing benefits of a Cycle to Work scheme. 1 2 Access Get the right scheme up and running The most important thing for any employer who wants to implement a Cycle to Work scheme is to get one which is compliant with the HMRC rules. A specialist Cycle to Work scheme provider will help you with this and make sure the administration runs smoothly. But you shouldn t just be looking for administrative support from your Cycle to Work partner - key areas to consider are: Choice does the 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 the 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? 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. Organisations can reduce barriers and objections to cycling with small investments which make a big difference to those who cycle to work including: You shouldn t just be looking for administrative support from your Cycle to Work partner 5 edenred.co.uk/ehub
6 Security a dedicated area with good lighting where bikes can be stored safely preferably under cover. Lockers places to keep a change of clothing post-commute. Changing facilities addition of a shower cubicle. Bike repair sourcing someone who can come on site to help with running repairs. 3 Inspire Increase participation in your organisation Continuing employer support for cycling to work helps promote bike commuting to existing employees and new ones. Employers 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. 6 edenred.co.uk/ehub
7 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 3 Promote your scheme to employees. Employees choose their bike and/or safety equipment up to the value of 1000 and make their application Employees sign a hire agreement, with payment coming out of their gross monthly salary that means they can save up to 47% on the cost through income Tax and National Insurance savings*. Employers make a saving on employer NI on the amount of salary sacrificed. The bike and/or safety equipment can either be delivered to or collected by the employee. At the end of the hire period the employer either transfers ownership of the bike to the employee or the employee can buy the equipment, according to HMRC guidelines. Employees can save up to 47% on the cost of a bike Any employer of any size can get a scheme up and running. Not only is it 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. *47% savings based on additonal rate of Tax 7 edenred.co.uk/ehub
8 Zodiac Aerospace reach new heights with the launch of their Cycle to Work scheme We worked with Edenred to implement a Cycle to Work scheme in partnership with a Cycle to Work provider. We 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. We were extremely pleased with the uptake of the scheme which had over 10% of employees taking part, which marks a huge success for us. 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. Gareth Welch, Payroll Manager, Zodiac Aerospace 8 edenred.co.uk/ehub
9 Edenred can find your perfect partner 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 the scheme that s right for you. Both our partners also offer additional savings on bikes and safety equipment for even more 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 employee uptake of the scheme through high-quality marketing and promotion. Halfords Employees can choose their bike from any of Halfords stores across the UK, including over 400 independent stores within their network. They offer 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 of 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. Communications expertise we will work with our partners to manage strategic communication programmes to maximise uptake across all other employee rewards and benefits you take from us. 9 edenred.co.uk/ehub
10 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 programmes and much more. To set up a scheme today, call us on to get started, or hello@edenred.co.uk 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 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 10 edenred.co.uk/ehub
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