Childcare, gym memberships and discounted movie tickets are just some of the perks Australia’s top companies are offering staff as the chance of a pay rise continues to look like a thing of the past.
Many businesses have stopped rewarding staff with annual bonuses because of the decline in the economy.
Experts have said despite the cutting back of monetary rewards, staff still have access to a host of perks.
“The biggest incentive we’ve found, especially for women, is the provision of childcare services,” recruitment research firm Kronos Asia-Pacific vice-president Peter Harte said.
“It’s the larger corporations that are opting for this.
“But most companies have a healthy policy where they offer reduced payments for gyms.
“Companies also offer staff spot awards, and present them with gift cards.
“We’re seeing an increase in gift cards being given to staff because there has been a change in the way companies were taxed on these.
“Gift certificates are ad hoc and easy to get. But those in the transport sector often get petrol cards.
“But The Body Shop, for example, send their staff products from their shop,” he said.
Looking outside the remuneration box
A report released by Mercer found organisations were looking outside the remuneration box.
It found 24 per cent of Australian companies interviewed were considering recognition programs, and 22 per cent were considering work-lifestyle benefits.
It listed half-day Fridays every fortnight in summer, free boot camps or gym subscriptions, a transport allowance or a free lunch once a week as being offered, along with childcare, remuneration packaging, supporting development and recognition.
Commonwealth Bank employees’ benefits includes discounts on flights, accommodation, fitness and health, personal technology and entertainment.
Accounting firm Ernst & Young has also continued its employee benefits scheme with vouchers for well-performing staff, and access to an on-site gym.
“The cost of recruitment and the time it takes is pushing companies to offer staff more incentives, particularly if pay rises aren’t an option,” Mr Harte said.
Good for employees, good for business
National Australia Bank group executive for people, communications and governance Michaela Healey said employee benefits were a “key part” of the bank’s employment offering.
“We believe what’s good for our employees, and is good for business – because our employees play a key role in the customer experience and the performance of our organisation,” she said.
“We continually look at ways to ensure our people are engaged and are enabled to be productive.
“NAB offers its employees discounts on its banking services, as well as savings on products, activities, sporting and entertainment events through the NAB Staff Club.
“NAB people can also access non-financial benefits such as flexible working options, childcare facilities at some major buildings, additional leave to volunteer in the community and matched-giving to charities.”
Employers of choice
Stonewater consulting group executive director Faz Fazal said large Australian companies had spent time and money developing their employee benefits program and being an “employer of choice”.
“Most have generally kept these benefits in place,” he said.
“They just haven’t improved or got more elaborate in the current decline in the jobs market.
“I think companies realise that they might not be able to increase pay and wage dramatically but these employee benefits don’t cost them that much in the scheme of things.”
Mr Fazal said he didn’t expect conditions in the Australian job market to improve for at least 12 to 18 months.
He said Australia was experiencing a white-collar recession.
Those in the $150,000 to $500,000 bracket were feeling the pressures the most, with “ad-hoc hiring” plaguing the economy, and large numbers of redundancies. “I think we’re at the pointy end of redundancies,” Mr Fazal said.
“We have hit the bottom with the largest corporations ending their two to three-year journeys on cutting costs and they are now seeing the true fruition of the cost-saving measures,” he said. “Businesses are waiting to see who takes the next jump and starts growing.”
Mr Fazal said once one company takes the lead and starts hiring, competitors will follow.
Job seekers hold back
A recent survey by recruitment firm Randstad found fewer employees were prepared to move jobs given a slump in confidence in the employment market.
It found Australia was one of a few countries to experience a downturn in the last quarter, with countries such as Spain, Norway and India experiencing increases.
Of those surveyed, fewer than 10 per cent of people were actively looking for work and 70 per cent would consider moving if the “right role” arose.
With the nation’s unemployment rate reaching a high of 5.8 per cent, according to the latest figures from the Australian Bureau of Statistics, it is no wonder job-seekers are holding back, Randstad group director Steve Shepherd said. He expected the unemployment rate to rise, despite job-seeker confidence making a comeback after the federal election, but said there will be a lag between companies coming back into the market and hiring.
“There was patchiness in the Australian jobs market [over the past three months],” Mr Shepherd said.
“But we are seeing a slight pick-up in permanent job orders in IT, engineering, accounting and finance, and from the pharmaceutical and construction sector.
“However, employers are still preferring to hire people on a more temporary basis and in contract roles due to the flexibility this provides to scale up or scale down depending on business conditions,” he said.
From: The AFR