6 things you need to know about uniforms and workwear

Auto Retail Agenda recently reported how a JLR directive on uniforms had caused consternation amongst retailers. JLR’s ‘The Look Book’ has set out what staff should wear under the new House of Brands strategy. It combines dark blue suits with white leather trainers, and white T-shirts or black roll-neck jumpers.

“These things aren’t cheap, so who pays for them,” said one retailer. “Because it’s either unbranded or very subtly branded, then if the retailer pays for it, the clothing could be subject to benefit-in-kind taxation.”

“Retailers have the freedom to adopt ready-to-wear or bespoke items according to budget,” responded JLR, “and procure through a supplier of their choice.”

As JLR reviews evidence submitted by retailers, the issue of workwear and uniforms in modern auto retail has come to the fore. To get on top of the issues retailers need to be considering, we spoke to Darren Leigh, director of branded custom workwear experts Leighmans.

1: How to choose and source your uniform

Darren advises retailers work with a genuine workwear brand, along with a supplier that can guarantee UK stock for continuity of supply. This helps detach the retailer from the seasonal effects of ‘fast fashion’ and lessens the risk of items going out of stock, or being in such high demand that sourcing them becomes impossible.

“Genuine workwear brands provide much harder-wearing items, with a product life of 12-18 months. There are retails brands trying to cross over into the workwear sector, but these will not last as long – expect around six to nine months before they need to be replaced. Often, the cost savings are not worth it, and are outweighed within a single lifecycle.”

When it comes to logos, Darren says embroidery will last far longer, and maintain the professional appearance of the garment. “Heat transfers are cost-effective for short runs but, if tumble-dried, will curl up at the edges, as the glue used to apply them is re-melted.”

As for the number of items per employee, four to five everyday upper body garments will help deliver maximum garment longevity and help maintain a clean, professional appearance.

2: Tailor your uniform to each department

“There can be a lot of lazy buying when it comes to uniforms. Retailers will seek feedback from the sales team, and use this to make a decision for the whole retailer, even the whole group. As these people will be going in and out of the building, they’ll maybe choose a cotton polo, with a jacket on top, to give a bit of warmth.

“But this won’t work for the technician. They’ll swelter in it. They need something that will take moisture away from the skin, which a blanket buying decision won’t deliver. The uniform has to be appropriate for the department. We worked with Alan Day Group to do this, and getting it right has led to a positive knock-on effect across the entire group.”

3: Think about what your employees will be comfortable wearing

You can use an agency to create a stylish, premium, design-first uniform. The models wearing it will look fantastic. But what about the people in your business who aren’t catwalk stars – will they feel as happy? Or will they feel self-conscious wearing something they’d never dream of wearing in everyday life?

“All your employees should feel comfortable wearing your uniforms, no matter what their shape and size. Getting it wrong can have a huge impact on morale. It’s important retailers use their experience when creating a uniform policy, and don’t simply base decisions on what a non-automotive design agency comes up with.”

4: Considering benefit in kind and clothing for work

Assets given or lent to employees, either wholly or partly for private use, count as a benefit-in-kind (BIK). Surprisingly, this includes clothing. But there are exemptions. Gifts to employees that are “trivial” – costing no more than £50 – are tax and NI free. They can be made as many times per year as you wish (although gifts to directors are capped at six per year, again up to £50). Work outfits supplied as components would qualify, so long as the shirt and trousers or skirt each cost under £50.

If an item costs more than £50, then they could be lent to employees. The BIK is 20% of the item’s value when first provided to the employee, plus maintenance costs (such as dry cleaning). And as long as these amounts total less than £50, then the trivial exemption applies.

“The company can also pay the tax on the employee’s behalf. However, this is very complicated, and it is an area you would need a tax expert to oversee.”

5: What counts as uniforms and workwear

If clothing counts as workwear, there is no tax or NI liability. Protective clothing is “worn as a matter of physical necessity because of the nature of the job” and includes overalls, protective gloves and so on.

Uniforms are less clear-cut. HMRC says uniforms must “readily be recognised” as such “by the person in the street”. This means that requiring employees to follow corporate dress codes isn’t enough. The best way to turn ordinary clothing into a uniform is to include an obvious, recognisable logo.

6: Uniforms help customers relax and employees perform better

The days of everyone wearing a suit and tie have long gone, says Darren. It is considered off-putting to customers, particularly younger buyers. “Everyone dresses in a more relaxed way today – and those looking at buying a new car wouldn’t dream of dressing up to visit a retailer. So why shouldn’t the salesperson dress accordingly, to reflect what their customers are wearing? 

“Branded uniforms have also been proven to increase value added product (VAP) sales, because customers are more relaxed and willing to have meaningful conversations with the salesperson. The transaction feels less combative, and the non-verbal communications are more positive, so they are more open and willing to consider products.”

If your retailer is thinking about investing in a new uniform for your team, make sure you factor in the potential bottom line benefits to the business – and be sure to measure it once the implementation is complete.

YOUR ACTION PLAN

• Use genuine workwear brands instead of retail alternatives
• Make sure you understand the benefit-in-kind implications for your employees
• Seek feedback on uniform plans from everyone in the business
• Make sure uniforms are fit-for-purpose for each department
• Read JLR’s plans for a new retailer uniform