An Employee Benefit Program provides employers with an additional resource that service the financial needs of staff. These needs are most likely not being met outside of the workplace which, based on independent research conducted by Mercer’s is increasingly becoming a critical factor in the assessment of jobs by employees.

Employees’ need for advice and education
Recent research carried out by AC Nielsen and Inside Story supports this notion still further.  From the findings of the research, almost two thirds of employees would like to receive access to financial education through their employer. However, only a small number indicated they were currently receiving access to financial education.

An Employee Benefit Program enhances and compliments the existing employer remuneration and employee benefits structure, which will also assist in attracting and retaining employees. Employers with an Employee Benefit Program can position themselves as ‘Employers of Choice’

Superannuation as a benefit

Superannuation is a noteworthy benefit provided to employees at a significant cost with employers contributing a minimum of 9% of base salary towards employees superannuation benefit.  There is a great opportunity for employers to get greater value from their investment – by turning what is perceived as “dead cost” into a valuable employee benefit.

For employees, superannuation is growing in importance, as it is, for the majority, the second largest asset behind their home.  However despite employers contributing considerable dollars into superannuation, a high percentage of employees have concerns that they are not financially prepared for retirement

Areas to review when considering a superannuation provider include:

• Advice provided - Employers need to be up to date with legislative change affecting their responsibilities as employers.
• Educational facilities - including personal interviews, group presentations and printed material, such as newsletters.
• Platform suitability - Employers are responsible for providing a superannuation solution for staff that is competitive and best for the staff.
• Insurance benefits – including design, placement and administration of group life and disability plans.
• Investment options - An employer with a default superannuation fund for staff needs to be more prudent with their choice of fund because it is other peoples’ money.
• Additional benefits such as loan discounts, health insurance and ancillary options.