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It’s all about the package – salary packaging for not-for-profits

2 min read

Organisations can struggle to identify what is appropriate remuneration for current employees. It is not always possible to pay employees what they deserve and attempting to predict the way remuneration needs will change over time can be fraught with difficulties.

Employers must be flexible and tailor remuneration to ensure a suitable salary for each employee, as determined by their individual circumstances.

From an employer’s perspective, the real value of salary packaging is the ‘sum of the parts’; each individual’s salary packaging arrangements are less important – it’s more about the total value of the offering.

There are several key points to consider when selecting a salary packaging provider to serve your employees:

1. The right provider – Identify a provider that will work for your organisation. They are your representative offering employees the flexibility of salary packaging services on your behalf.

2. Your value – Consider how your organisation will be valued by the salary packaging provider. It is imperative that you and your employees receive appropriate service and that the size of your organisation does not make your needs a low priority.

3. Flexibility – Situations can change, so it is important that your provider is flexible and has the capacity to be responsive to the needs of your organisation and your employees, and can promptly adhere to changes in government legislation.

4. Simple options – The options available to your employees should be simple to understand and offer clear salary packaging directions.

5. What’s on offer – Work out what your provider is actually offering. Your organisation needs to ensure all fees and charges are visible from the outset. The provider must communicate any charges for additional services or whether there are costs to your organisation for salary management services. Providers must show how salary management services will fit in with your organisation’s administration processes.

Meeting these varying needs and providing a better salary is not beyond your reach. It is possible to provide the flexibility your employees want while adding value through cost effective means such as salary packaging. As employees start to receive the value of their packages, organisations are empowering themselves to achieve greater staff retention and become a more desirable destination for new talent.

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