Biking Makes Business Sense 💰
Direct Financial Benefits for Businesses
As businesses navigate the challenges of today’s competitive environment, finding innovative ways to reduce costs and enhance workplace productivity is more desirable than ever. One solution that delivers tangible savings and improves employee satisfaction is the Workride benefits programme. Let’s delve into how cycling can add a little more money in the back pocket of businesses, employees, and society as a whole. Salary sacrifice schemes like Workride offer cost-saving opportunities for employers. Here’s how…
Reduction in Employer Contributions
Reduction in Employer Contributions* - when an employee uses Workride, the benefit comes off their pre tax salary, effectively reducing the taxable income, so you as an employer save on kiwisaver and ACC Levy contributions. For an estimated cost based on your workplace you can use our Employer Benefits Calculator
In New Zealand, employers pay ACC levies at a rate of 1.6% based on an employee’s gross income (ACC Salary and Levies Guide), making salary sacrifice an effective cost-saving strategy. Additionally, typically a mandatory 3% contribution is paid by employers through Kiwisavers. These savings, while dependent on specific conditions, can offer measurable reductions in employer expenses.
Minimal Implementation Costs
WorkRide is cost-neutral for businesses, making it an attractive option for employers. Our digital platform streamlines compliance and administrative processes, ensuring an easy roll-out without significant time or resource investment. The platform automates key functions, saving businesses and employees both time and money.
Decreased Parking Costs
Providing parking spaces for employees can be a significant expense, particularly in urban areas where space is at a premium. For example, the average annual cost of maintaining a single parking spot in a city centre can exceed $3,000 (NZ Transport Agency). Encouraging staff to cycle through WorkRide reduces the demand for parking facilities, freeing up valuable real estate or eliminating the need for additional leased spaces. It also opens up opportunities to reduce your vehicle fleet size and pay out less in mileage claims to staff.
Reduced Absenteeism
Employees who cycle to work are more likely to arrive refreshed and less stressed compared to those commuting by car. Regular cycling has been shown to improve overall health and well-being, which can contribute to fewer sick days and reduced absenteeism. Cycling is linked to lower risks of cardiovascular diseases and improved mental health (NZ Ministry of Health).
Boosted Employee Retention
Happy employees are more likely to stay loyal to a company. By offering desirable perks such as biking benefits, businesses can reduce turnover and the associated costs of hiring and training replacements. Improved morale and reduced commute-related stress also lead to greater workplace productivity. Businesses save an average of $3,500 annually for every employee retained (Hays Recruitment).
Indirect Savings for Employers
Wider Society & Environment
The advantages of WorkRide extend beyond the balance sheet, offering broader contributions to societal well-being and sustainability. These aspects are increasingly important to businesses aiming to enhance their corporate social responsibility (CSR) efforts.
Carbon Emission Reductions
Encouraging cycling over private car journeys significantly cuts carbon emissions. The average New Zealander emits 2.6 tonnes of CO₂ annually (NZTA). Businesses promoting eco-friendly commuting options like WorkRide help reduce this figure, supporting national targets of net zero by 2050
Enhanced Public Image
Companies that adopt green initiatives like WorkRide can boost their brand reputation. For example, New Zealand Post’s investment in cycling courier programmes enhanced their sustainability image while reducing emissions and operational costs (NZ Post Sustainability Report). Employees and customers alike value businesses that take tangible steps to reduce their environmental impact. According to a survey by Nielsen, 73% of consumers say they are more likely to support brands with clear sustainability efforts. It’s important that any credentials businesses do highlight are backed up by data, and not seen as green-washing
Supporting the Local Economy
Subsidising biking not only benefits employees but also supports regional bike infrastructure networks, contributing to the overall health of local economies. For instance, increased cycling can lead to expanded bike-friendly services and infrastructure improvements, creating a virtuous cycle of community benefit. Furthermore, cycling as part of commuting can significantly stimulate local economies. For example, a report from Christchurch City Council shows that investing in cycling infrastructure supports local businesses and creates long-term economic benefits (British Cycling Economy). which found that cycling contributed £2.9 billion annually to the UK economy in 2010 alone.
Where does workride come in?
Workride are New Zealand’s ride to work benefit program. We enable you to offset between 32-63% off a new bike or e-bike through your employer. Better yet, this cost is effectively spread out across 12-months through the salary sacrifice.
Calculate your savings using our Employer Benefits Calculator to see how much your business could save today!
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