What don't you like about Novated Leasing

[MyCarBudget]

Most large organisations in Australia offer Novated Leasing as a employee benefit yet when speaking to HR professionals none of them like offering it as it comes with considerable admin responsibility.

Keen to hear what you think of the effort involved in offering Novated Leasing and if you think it is worth the effort.

[Cottoneyes]

The thing most companies need to do is write a good policy with clear cut guidelines such as "you may novate a car but only through xyz novated lease company" or "the novated lease must be a fully maintained agreement with all initial admin completed by the employee and the company has the right to not enter into the agreement"

For some employees it's too good of a benefit to pass up (particularly amongst sales people) and would add to some turnover if not offered. If set up right there is little extra admin for the company assuming they have competent payroll / rem& ben / HR / finance personnel.

[MyCarBudget]

Originally Posted by Cottoneyes

The thing most companies need to do is write a good policy with clear cut guidelines such as "you may novate a car but only through xyz novated lease company" or "the novated lease must be a fully maintained agreement with all initial admin completed by the employee and the company has the right to not enter into the agreement"

For some employees it's too good of a benefit to pass up (particularly amongst sales people) and would add to some turnover if not offered. If set up right there is little extra admin for the company assuming they have competent payroll / rem& ben / HR / finance personnel.

Great feedback and I suppose it comes down to how popuarl the service is at an organisation. In many cases it can begin with a new staff member coming across who already has a lease. HR then needs to accommodate them.

Unless the service is properly promoted most staff will know very little about it and won't understand the ins/outs, placing it in the too hard basket. They then miss out.

For executives and sales staff who are accustomed to it, having access to a Novated offer is pretty standard, particularly if they are required to travel with their vehicle.

[Cottoneyes]

Originally Posted by MyCarBudget

HR then needs to accommodate them.

Actually in my experience the novated lease companies need to be far more flexible in undertaking 'orphan' leases. Too many companies at the moment will only deal with employees who have 20 or 50 staff with active novated leases, which means when the employee moves to a different company who does not deal with the NV agency, they can't take the lease with them.

[MyCarBudget]

Do you find that staff at all levels are interested in car related benefits like NV? Do they come asking about what is on offer?