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Why Salary Packaging May Be The Key To Reducing Employee Turnover

Here at Simplygreen, we understand that your task of gaining and retaining employees can be challenging. However, over the years we’ve seen first hand how offering salary packaging options can give you a real advantage in both recruitment and retention.

While there are a number of factors that contribute to the reasons why an employee may leave an organisation, a key one is that the job simply didn’t offer enough. Of course, an increase in pay is always nice, but it has been revealed time and time again that a $1 an hour raise simply isn’t enough to keep an employee engaged and on board. Employees want salary packages that cater to their needs, and creating those salary packages is an area where SimplyGreen has particular expertise.

The Cause Behind High Employee Turnover

There are a variety of reasons why Australians have chosen to leave their employers over the past few years. A recent Australian Human Resources Institute survey of just under 600 respondents cited the following for being part of the reason why there is a 13% turnover rate from 2012 to 2013:

• Lack of promotional opportunity (20%)
• Poor relationship with manager (17%)
• Insufficient pay (12%)

Interestingly enough, the dollar amount that an employee is paid isn’t the only type of compensation employees and job candidates are looking for.

Along with having company culture that is a good fit for an employee, being able to offer salary arrangements that fits with his or her lifestyle may tip the balance in favour of their accepting, and retaining, a role with you. And, importantly, many of the elements that can be included in a package can benefit the employer as well.

The Benefits of Salary Packaging for Employers

The benefit to an employee for choosing to salary package is that they are able to receive services or goods at a pre-tax rate. For the employer, however, you’re able to offer the best talent in your industry fantastic benefits that would otherwise cost them (or yourself) hundreds if not thousands of dollars in company resources.

Some of the most enticing salary packaging options that Simplygreen can include in tailored salary packages are:

• Novated car leasing
• Superannuation
• Self Education Expenses
• Income Protection Insurance
• Mortgage repayments (FBT exempt and rebatable organisations only)
• Rent payments (FBT exempt and rebatable organisations only)
• Personal loan and credit card repayments (FBT exempt and rebatable organisations only)
• Utility bill payments (FBT exempt and rebatable organisations only)
• Electronic devices
• Meals and entertainment (FBT exempt and rebatable organisations only)

When organisations, regardless of their size, choose to salary package, they are able to not only save a lot on taxes, but they’re also able to gain, maintain, and retain top talent. This means that you’re not only able to save company resources, but you’re giving your company the chance to develop and grow.

The Simplygreen team understands the ins and outs of salary packaging and the associated tax regulations, and is in an ideal position to advise you on the pros and cons as they apply to your organisation. We offer a variety of wages payment solutions to help you attract the best candidates in your industry while also saving money. We welcome your call today on 1300-664-323 to discuss how we can help you.