In today’s competitive job market, attracting and retaining top talent requires more than just a competitive salary. To stand out as an employer of choice – and to avoid getting caught up in unwinnable ‘wage wars’ – organisations must incorporate non-cash benefits into their corporate remuneration programs.
These benefits go beyond monetary compensation and offer employees additional perks that enhance their work-life balance, personal development, and overall job satisfaction. By strategically leveraging non-cash offerings, companies can create a more attractive work environment that appeals to top industry talent.
The relevance of employee benefits was highlighted in our recent June 2023 Pulse survey, where 38% of respondents indicated that they are looking to broaden their employee benefit offering in an effort to address staff retention and attraction in FY24. At our live client event in February we discussed three of the best non-cash benefits companies can use in 2023 to attract and retain employees. Read on to find out what they are and how you can use them.
Electric Vehicles (EVs)
Electric vehicles are gaining popularity as an enticing non-cash benefit, particularly for large, diversified businesses. Companies can consider incorporating EVs into their corporate fleet and even provide opportunities for employees to salary package these eco-friendly vehicles. With exemptions for battery electric vehicles, hydrogen fuel cell electric vehicles, and plug-in hybrid electric vehicles, companies can provide EVs while enjoying reduced operating costs for fuel and servicing. Detailed arrangements, including the provision of home charging stations, can be further explored to enhance this benefit.
Training and Development
For many companies, investing in employee training and development programs has proven to be a highly valuable non-cash benefit. Through tailored career development initiatives, employees have the opportunity to pursue higher-level studies, such as an MBA, which directly relates to their employment. This benefit not only demonstrates the company’s commitment to professional growth but also allows employees to advance their careers while achieving personal goals. By providing tax-effective options for educational courses, businesses can offer employees the chance to enhance their skills and contribute to the organisation’s success.
Tax Concessional/Exempt Items
There are a number of non-cash items which are treated as exempt or have a reduced value for fringe benefits tax (FBT) purposes. These items provide a range of perks that go beyond traditional remuneration packages, without a significant tax burden to the company. Relevant non-cash benefits can include airline memberships, professional memberships and laptops or mobile phones which are used primarily for work purposes. By bundling these benefits, companies can offer unique incentives that cater to the specific needs of their employees.
Incorporating non-cash employee benefits into corporate remuneration programs is a smart strategy to attract and retain top talent. By embracing offerings with the items outlined above, businesses can create an environment that not only meets employees’ financial needs but also promotes personal growth, work-life balance, and job satisfaction. The Reward Practice’s live event shed light on these three benefits as powerful tools to enhance employee attraction and retention in 2023. Stay ahead of the competition by adopting “Total Reward” strategies that make your company an irresistible place to work.
Contact us if you’re seeking guidance on your remuneration and reward strategy.
Related Posts
New Employee Share Scheme Changes Make Performance Rights More Attractive