Manage remuneration and employee benefits
BY Tao Jiang
BSBHRM505A
Manage remuneration and employee benefits
A remuneration package includes salary or wages but may also contain
other benefits or rewards such as accommodation, a car, telephone, gas
or electricity allowances, meals or milk. Working out a good
remuneration package will help to attract, retain and encourage the right
employees.
Remuneration packages should suit the business situation, and reflect
the responsibilities and duties of the position and the skills and abilities
of the employee. To attract and retain staff it is also important to
consider current market rates being offered for similar positions.
Now let us see an example of Remuneration package for receptionist:
Minimum wage: $50000
Maximum wage: $60000
Location allowance ($8.27 per week- single) minimum: $ 937.5
($16.54 per week –with dependent) maximum: $1875
Annual Leave Loading 17½ %( Based on 4 weeks’ salary) minimum:
$656.25
Maximum: $748.25
Total cash package minimum: $44304
maximum: $49226
Superannuation 9% minimum $ 3765
maximum: $ 5430
Superannuation 5% minimum: $ 2.033
maximum: $4987
Total package minimum: $50,102
maximum: $59,643
Types of pay
Manage remuneration and employee benefits
BY Tao Jiang
BSBHRM505A
Pay for ordinary hours
Ordinary hours of work are usually the hours agreed to between the
employer and the employee as being the hours which will be worked
before any overtime or penalty rates are payable.
Ordinary hours of work is an important concept in remuneration,
because it is often used to calculate the various leave entitlements and
termination payments. Ordinary pay for your employee may be the
minimum award rate or federal or state minimum wage or an agreed
higher rate.
Overtime pay
Overtime payments are a type of penalty rate and usually involve an
additional percentage of the ordinary rate of pay to compensate the
employee for working in excess of the ordinary number of hours or
outside the ‘spread of ordinary hours’.
Pay for weekend work and public holidays
Payment for working on days other than the ordinary days of the
business (e.g. on weekends and public holidays) is another form of
penalty rate.
Awards usually specify the level of payment for work done on weekends
and public holidays.
Bonuses
Bonuses are designed to reward employees who meet set targets or
goals, for example, higher productivity. Performance measures might be
milk production over a particular period, annual profit, or incidence of
mastitis.
Other benefits
Although remuneration is mostly thought of as wages, the value of
accommodation, a car, telephone, gas or electricity allowances, meals or
milk and any other benefits can be considered when putting together a
total package.
Superannuation
Manage remuneration and employee benefits
BY Tao Jiang
BSBHRM505A
Superannuation is not technically part of the employment remuneration
package as, apart from the exceptions listed below, all employers must
pay superannuation for all employees.
However, some employers choose to pay an increased rate of
superannuation to attract employees and in this case superannuation
may form part of the remuneration package.
The superannuation guarantee legislation requires employers to provide
superannuation contributions for employees as a percentage of their
‘ordinary time earnings’. This amount must be paid to the
superannuation provider at least every quarter, and a record kept of all
contributions made.
Task2
Conduct a gap analysis
Remuneration can be defined as basic components of employee’s
composition. There are two different types of remuneration which are
fixed and variable remuneration. Firstly remuneration is based on the
monetary reward that employer have to pay for employees. Secondly,
variable remuneration is refers to other additional pay that could be
change every month, therefore it could motivate the employees to
achieve best performance and target.
Gap Analysis compares your current situation with the future state that
you want to achieve once your project is complete. By conducting a Gap
Analysis, you can identify what you need to do to "bridge the gap" and
make your project a success. You can use Gap Analysis at any stage of
a project to analyze your progress, but it's most useful at the beginning.
Manage remuneration and employee benefits
BY Tao Jiang
BSBHRM505A
To carry out a Gap Analysis, first identify your project's objectives. Then
analyse your current situation, making sure that you gather information
from the right sources.
Finally, identify how you'll bridge the gap between your current situation
and the desired future state.
However, employee benefits are something uses to supplement
compensation. This is extra allowance for employees, for instance,
product discounts relevant to the organisations industry or production;
salary sacrifice options; additional leave entitlements; relevant
association memberships and subscriptions.
Identify which awards or industrial agreements apply to
receptionist.
Individual transitional employment agreement: It is an individual written
agreement between you and your employer setting out the terms and
conditions of your employment. These include things like how much you
are paid, your hours of work, and other things relating to your job. It will
be assessed against the no disadvantage test to ensure that your ITEA
does not disadvantage you against an applicable collective agreement,
or an applicable award.
Employee collective agreement: A collective agreement may cover
businesses run by more than one employer. An employee collective
agreement is made between your employer and the employees
employed at the time who will be covered by the agreement.
Employer greenfields agreement: it is made by a single employer before
the employment of any workers to be employed as part of a new
business, new project or undertaking. They have no counterpart in any
previous Act.
Competitiveness: The job description of reception staff has expanded
quite a bit due to the increased use of technology in the workplace. In
addition to their usual tasks, many reception staff also assist their
companies with payroll, bookkeeping, receivables collection, and a
variety of other office tasks. In many cases a receptionist is expected to
perform multiple tasks quickly and efficiently.
Manage remuneration and employee benefits
BY Tao Jiang
BSBHRM505A
Consider other benefits
Once you have determined the current market rate you can then add
other benefits into the equation.
For instance, the face value of a wage for a dairy farm employee may
not appear to be attractive compared with other industries. However,
when the total package is measured you may be surprised at its value to
the employee.
What changes to the approach the organization takes to
remuneration and benefits for that position.
Research occupational groups to determine those which are industrial
agreement-based
Access market rates surveys regularly to ensure the organisation’s
required level of competitiveness for particular occupational groups is
maintained; ensure that employees receive at least their minimum
entitlements in accordance with organisational policies and legal
requirements; ensure salary packages comply with organisational
policies and legal requirements including fringe benefits tax and
superannuation; ensure incentive arrangements, if included, comply with
the organisation’s remuneration strategy.
They can provide some reward options like, incentive plans which are a
formal process of assessing goals in a role at standard performance with
performance at a higher level; performance bonuses may be for high
performance against a special project or one-one activity; sales
commissions are very specific to roles that can impact direct sales
results. Share plans allocations are unique to publicly listed
organisations and are generally applied to the achievement of a specific
ownership and loyalty to the organisation.