Posted: February 23, 2026The answer might surprise you — and it could be costing you candidates.
When Sonas Technical sits down with hiring managers across Ireland’s construction and engineering sector, the question of company vehicle versus car allowance comes up more often than almost any other benefits conversation. And yet, despite its importance to candidates, it remains one of the least consistently handled perks in the industry.
If you haven’t revisited your firm’s vehicle policy recently, now is the time. The market has shifted considerably, and what felt generous a few years ago may now be falling short of candidate expectations, quietly costing you talent before you even get to the offer stage.
Where the Market Currently Sits
Based on the data we gather at Sonas Technical through live hiring mandates, candidate conversations, and our annual 2026 Salary & Benefits Guide, the picture is relatively clear: car allowance has overtaken the company vehicle as the preferred and most commonly offered option among mid-to-senior construction professionals.
For roles such as Project Managers, Senior Engineers, and Quantity Surveyors, a cash car allowance is now the norm at most tier-one contractors and large consultancies. Typical allowances in 2026 range from €7,500 to €14,000 per annum, depending on seniority and the expectation of site travel. Site-based roles with significant regional travel, think Contracts Managers overseeing multiple projects, often see allowances at the higher end or retain a physical vehicle as the more practical solution.
Company vehicles, whilst still common in civils, infrastructure, and utilities contracting, are increasingly viewed by employers as administratively cumbersome, particularly since the BIK (Benefit-in-Kind) changes that came into effect in recent years. For many candidates, a company car now comes with a tax bill that erodes its perceived value significantly.
The BIK Factor: Don’t Ignore It
The 2023 changes to BIK taxation on employer-provided vehicles fundamentally altered candidate sentiment towards company cars. Under the current regime, the taxable benefit is calculated on a combination of the car’s original market value and annual mileage, and at lower mileage levels, the BIK liability can be surprisingly steep.
We regularly speak to candidates who have turned down roles specifically because the company vehicle on offer, once BIK was accounted for, was worth considerably less than a clean cash allowance from a competing firm. The headline perk looked attractive; the take-home reality did not.
If you are still leading with a company vehicle in your offers, it is worth being transparent with candidates about the likely BIK impact. It is also worth considering whether a hybrid model, offering the candidate a choice between vehicle or allowance, might make your offer more competitive.
What Candidates in Construction and Engineering Actually Want
Across the roles we fill, from Site Engineers to Technical Directors, we see a clear generational and lifestyle split in preferences.
Younger professionals, particularly those under 35, consistently tell us they prefer a cash allowance. They want the flexibility to choose their own vehicle, manage their own lease, or simply factor the allowance into their household finances. They are also more likely to be living in urban areas where a large company vehicle can feel like a liability rather than a perk.
More experienced, site-focused professionals, particularly those clocking up significant mileage each week across multiple project locations, tend to prefer the simplicity of a fully maintained company vehicle. For them, the convenience of servicing, insurance, and road tax being handled by their employer outweighs the BIK cost.
The key takeaway for employers: a one-size-fits-all approach is increasingly the wrong approach.
What We Recommend to Our Clients
At Sonas Technical, the advice we give our clients is consistent: if you want to remain competitive in 2026, offer flexibility where you can. The firms consistently winning the best candidates are those who either offer a genuine choice between vehicle or allowance, or at minimum ensure their allowance figure is benchmarked against the current market rather than set and forgotten.
If your car allowance hasn’t been reviewed since 2022 or 2023, it is very likely below market rate. Fuel costs, insurance premiums, and vehicle prices have all risen meaningfully, and candidates are doing their homework.
A few practical steps worth taking now: audit your current vehicle benefit against the current BIK rules and model the true net value to a candidate; benchmark your allowance figure against live market data (our 2026 Salary & Benefits Guide provides role-by-role breakdowns); and consider introducing flexibility into your standard offer. It costs very little in administration but sends a powerful signal about how you treat your people.
The companies winning in the current talent market are not necessarily the ones offering the flashiest cars. They are the ones who understand what their candidates actually value and structure their benefits accordingly.
For a full breakdown of current benefits benchmarks across construction and engineering roles in Ireland, download the Sonas Technical 2026 Salary & Benefits Guide at sonastechnical.com, or speak directly with one of our consultants.