employee benefits survey 2013
TRANSCRIPT
Survey of Australian HR managers
What drives employee benefits strategy
in Australian organisations?
Executive Summary
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100% of HR managers surveyed say that employee benefits drive retention
Leave and flexibility are considered the most important type of employee benefit followed by financial benefits such as salary packaging
Cost to the organisation is a key factor in deciding which employee benefit to provide to their workforce
Understanding of salary packaging and novated leasing is high among the HR managers surveyed
78% of organisations that do not already have salary packaging or novated leasing are considering to implement in 2013!
73% of organisations surveyed already have salary packaging or novated leasing in place
Drivers of employee benefits
We asked what the main drivers of an employee benefits strategy were:
100% of HR managers surveyed either agree or strongly agree that
employee benefits drive retention
Salary Packaging & Novated Leasing as an Employee Benefit
What do you see are the main drivers of an employee benefits program?
5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
5% 63% 32%
36%
60% 35%
64%
Engaging Staff
Retaining Existing Staff
Attracting New Staff
Disagree Agree Strongly Agree
Types of employee benefits ranked in order of importance to HR managers surveyed
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Leave and flexibility benefits
Financial benefits such as salary packaging
Wellness programs such as gym memberships
Access to consumer retail discounts
Leisure and lifestyle memberships
Cost to the organisation is a top consideration while deciding what benefits to give
employees
Cost to the organisation
Potential participation of employees
Ease of implementation
Savings offered to employees
Compliance and risk
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5
Awareness and understanding of salary packaging and novated leasing is high among HR managers across Australia
I understand salary packaging and novated leasing very well
I don’t know anything about salary packaging or
novated leasing
Somewhat understand the benefits
5%
38%
57%
73% of HR managers surveyed have salary packaging or novated leasing as an employee
benefit in their organisation already
Does salary packaging or novated leasing form part of your organisation’s employee benefits program?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Yes
No 27%
73%
78% of HR managers who do not offer salary packaging or novated leasing are
considering offering it in 2013
Would you consider exploring the option of including salary packaging and novated leasing as part of your organisation’s employee benefits program in 2013?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Yes
No 22%
78%
Only 19% of organisations that do salary package do it internally completely
Do you outsource or do the benefits administration internally?
In the combination category, most do salary packaging internal and novated leasing outsourced
Combination
Internally
Outsourced
19%
44%
37%
The main advantages of why organisations want to salary package – particularly cars
Top advantages of providing salary packaging and novated leasing
Tax benefits and therefore more competitive salaries
Meets employee expectations and is consistent with competitor offering
Employees expect it nowadays
Cost neutral to the company. Employees get to purchase a vehicle they would not normally be able to afford.
Provides freedom of choice and flexibility for employees and reduced vehicle costs to employers
More to offer to employees, leads to greater tie-in or retention
Tax benefits; ability to spread cost
Top challenges to providing salary packaging: HR managers believe there’s
not enough benefit for employees
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
There’s not enough benefits for employees
The process is complex to implement and administer
It is difficult to understand how salary packaging/novated leasing works
It is expensive to implement and administer
Employees aren’t intrested 18%
68%
50%
43%
39%
One of the respondents’ comments was: “Planning, thought and variety overcome these challenges”.
71% of HR managers would consider a service that guarantees the lowest price
for new cars as an employee benefit outside of salary sacrifice
Car buying service
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Yes
No 29%
71%
