Employers, who often have to go to great lengths to recruit each and every skilled worker, can use company bike leasing to set themselves apart from competitors who continue to ignore innovative mobility concepts.

The good news is that this benefit does not cost the employer anything, so the only real cost is the administration. The situation is similar for insurance and leasing, which are also covered by leasing companies. For employers, this means that they can concentrate on the essentials.

How company bike leasing works from the employer's perspective

If you want to provide your employees with company bicycles, you have three options. Firstly, you can buy the bikes outright, or secondly, you can finance them with a loan. However, the third option, where the employer leases the company bike, is the most popular. This is not least due to the comparatively small costs involved, which hardly affect liquidity. Another advantage of leasing is that the employer can easily return a bike when it is no longer needed, rather than being stuck with purchased bikes that are no longer worth much.

If you want to offer company bike leasing to your employees, the first step is usually to register online with one of the various leasing providers, such as mein-dienstrad.de. In the framework agreement, you can specify the terms and conditions, such as the maximum value of a bike or the maximum number of company bikes an employee can lease. Once everything is settled, it is up to the employees to register with the leasing provider, for example via a link. They can usually choose from a wide range of brands and models. As leasing providers work with specialist dealers, employees can usually pick up their dream bike from the shop around the corner.

These few processes mean that the employer only has to deal with a small amount of paperwork. The HR department needs to contact the employee to sign the transfer agreement. The payroll department is then informed of the process. That's it.

Apart from a small administration fee, there are no additional costs for the company. This is because the financing takes place through salary conversion, with the leasing instalment being deducted directly from the gross salary. The reduction in salary also reduces the employer's social security costs. The more wheels he leases for his employees, the more profitable this financing option will be for him.

In principle, the employer is free to subsidise individual aspects of the cost of bicycle leasing. This can apply to the leasing instalment itself, but also to the costs of repairs and inspections. These costs can generally be deducted as business expenses, reducing the employer's tax burden.

This is how the employer benefits from company bike leasing

The following overview gives a rough idea of the benefits that employers can enjoy thanks to company bike leasing. What specific advantages result from a comprehensive insurance package within the leasing offer is explained in number 4. You are also welcome to contact us directly if you have any questions about our flexible leasing insurance packages.

1. Benefits for greater employee loyalty

At a time when skilled labour is becoming increasingly scarce, companies need to do everything they can to attract and retain top talent. By 2030 alone, Germany could face a shortage of more than three million skilled workers, mainly due to an ageing population. With employees often free to choose their employer, benefits are playing an increasingly important role.

Offering your employees the opportunity to lease a company bike as an attractive benefit is an important signal that you care about your workforce. The prospect of leasing a modern bike or e-bike at a low cost can motivate many of your employees to stay with your company for the long term. While some employers are still trying to score points with applicants by offering a ping pong table, a bike lease can offer talented people something that will have a positive impact on their working day.

2. Leading the way to sustainability

In addition to employee loyalty, company bike leasing can be important for a company's public image for another reason. Environmental awareness is growing among all stakeholders, be they customers, consumers, business partners or investors. It is no longer just a few companies that are concerned about sustainable business practices. Sustainability is playing an increasingly central role in branding. But how does a company demonstrate that it is serious about the environment and not just riding the green wave?

The leasing of company bicycles for your employees underlines your commitment to sustainability. Bicycles and e-bikes are also a great way to get this message across, as they can be used as mobile advertising for the company.

3. Promoting employee health

Employee health has become an increasingly important issue in recent times. From an employer's point of view, this makes sense for a number of reasons. Healthier employees take fewer sick days, helping to reduce staff costs. In addition, healthy employees generally feel better, which also increases their satisfaction and productivity. It is not surprising, therefore, that occupational health management measures have been well established in many companies for a long time.

Cycling is easily on a par with back exercises, yoga or corporate fitness. However, it has the great advantage of being a natural part of the working day. Cycling employees cycle to work ten times in a normal week. This regularity, combined with moderate physical activity, makes cycling an important means of health promotion. The rhythmic movement of cycling also helps to reduce stress. For an employer, company bike leasing is an easy way to embed preventive health care into your company's DNA and increase employee loyalty.

4. Essential for company bike leasing: insurance coverage

Of course, the bike boom also has a downside. In 2021 alone, more than 230,000 bikes have been stolen in Germany. High-end bikes and e-bikes are particularly popular with thieves. Of course, bike damage is also a very diverse and relevant problem. Fortunately, you don't have to search for a suitable insurer if you lease a company bike. Insurance is usually offered as standard by the leasing company. With hepster as their insurance partner, employers can look forward to a range of sensible and flexible cover, and don't have to worry about whether their existing company insurance policy covers company bicycles, for example. Employees whose household insurance does not cover company bicycles can also count on maximum security. With fully comprehensive cover, they are protected against the usual risks of cycling, including accidents, vandalism and theft.

From the employer's point of view, there is also the risk that the employee may not be able to continue paying the leasing instalments for various reasons. These reasons include the following

• long-term illness
• disability
• parental leave
• maternity leave
• dismissal

Does the employer have to pay if his team is unable to work? In principle, no, if the employer has taken out payment protection insurance with the leasing provider's insurance partner. This insurance covers the full monthly leasing instalments of the absent employee. If the employee has to leave the company, the employer is not stuck with the bicycle or e-bike as he can usually return it before the end of the leasing period.

Comfort Fully Comprehensive covers theft, collision and accidental damage, so your employees are covered and can get on their bikes with complete peace of mind.

You can also add an optional bicycle cover letter to the policy. This kicks in if an employee is unable to get off their bike due to an accident or breakdown.

Up to a certain amount, the cover letter will pay for the cost of transporting an unroadworthy bicycle or e-bike to the nearest garage or destination.

Depending on the leasing company, additional services may be offered, such as inspections and repairs. The employer can also do something about employee retention by subsidising additional packages. The employer does not have to worry about additional costs for this subsidy, as the insurance premiums are usually also paid through deferred compensation.

The fact is:

With leasing providers who have hepster as an insurance partner, employers can look forward to digital insurance cover that is very flexible thanks to individual modules. In addition to all the usual risks described above, hepster's insurance package also includes instalment payment cover. What's more, there are no additional costs. The insurance packages for employers and employees are very easy to set up online and, thanks to digital processes, are simple to use, right down to the reporting of claims.