Employers can promote themselves as an “employer of choice” by providing greater remuneration incentives to their employees, at no additional cost to the organisation. By giving employees the opportunity to obtain greater value and flexibility from their salaries, your organisation will become more attractive and competitive in the recruitment market and increase goodwill with new and existing staff.

Salary Packaging assists employers to:

Attract and Retain Employees
Create a competitive advantage in the marketplace by offering a more flexible and valuable remuneration package, allowing employees to increase their net disposable income (without increasing cash salaries).

Increase Employees’ Disposable Income
Salary packaging gives employees the flexibility to structure their remuneration in a more tax-effective manner. By reducing their Income Tax burden, employees can increase their net disposable income, and in some instances, become eligible (or increase eligibility) for Government means-tested benefits such as Family Tax Benefits.

Generate Employee Goodwill
Allowing employees to have some input into their remuneration will assist in engaging employees, let them know they are valued and appreciated and provide ongoing incentives to keep them satisfied.

Reduce Staff Turnover
By providing a more valuable remuneration opportunity for employees, your organisation will achieve greater staff retention by actively seeking to increase the value offering to staff and consider their individual needs.

Also, salary packaging creates a stronger commitment between employees and their employer, as employees are less likely to leave once a salary packaging arrangement is established (due to the hassle and risk of losing available benefits with any new employer), resulting in less staff turnover.

Greater staff retention results in lower costs for employment advertising, recruitment activities/services, interviewing and selection time and training costs.