With all the rhetoric surrounding the current Federal industrial relations changes it is intersting that a study by HR group Mercer suggests that employers are being increasingly flexible in what they offer their employees.
With all the rhetoric surrounding the current Federal industrial relations changes it is intersting that a study by HR group Mercer suggests that employers are being increasingly flexible in what they offer their employees.
Mercer's full press release is below:
Employers are offering their staff greater choice and flexibility across a range of benefits and work practices from telecommuting and parental leave to how employees want their super invested, according to a recent study from Mercer Human Resource Consulting.
The 2005 Australian Benefits Review, Mercer's annual study on current market practice and emerging trends in remuneration and benefits in Australia, has revealed that 67 per cent of companies offer telecommuting as an option, up from 51 per cent in 2004.
Rob Knox, head of Information Services at Mercer said this may indicate that organisations are trading off hours worked with flexibility in other areas.
"At the same time as 25 per cent of companies reported that working hours have increased, there was a 16 per cent rise in organisations offering telecommuting. Technological innovations such as blackberries and PDAs mean it's possible for an employee to be productive and available for more hours of the day, which is a benefit to employers. On the other hand, it offers employees the flexibility to work from outside the office - which many staff regard as a considerable benefit," said Mr Knox.
The first rise in Australia's birth rate for a decade, last year, was accompanied by a significant increase in the availability of paid parental leave. This year's Australian Benefits Review showed a significant increase in the availability of paid parental leave. There was an eight per cent increase in the number of organisations offering paid maternity leave (49 per cent in 2004 to 57 per cent in 2005) and a seven per cent increase in paid paternity leave (38 per cent in 2004 to 45 per cent in 2005).
Mr Knox said, "Organisations are mindful of the folly of losing good staff just because they are starting a family - particularly when the retirement of our baby boomers is further shrinking the overall pool of talent.
"Instead, companies are seeking to protect their investment in people by offering incentives to return to work, such as paid parental leave and the opportunity to telecommute."
Mr Knox said the trend reflects the increasing efforts by companies to collaborate with employees and build a compelling employer brand.
"Companies recognise and are acting on the basis that employees respond well to being treated as individuals, and appreciate having their personal circumstances taken into account by their employer.
"Employees today are looking beyond the cash components of remuneration and considering other factors such as workplace culture, family-friendly policies and non-monetary benefits when accepting or deciding to remain in a role," he said.
Superannuation was another area in which significant change was recorded this year, including:
- An increase of six per cent in the number of organisations offering a choice between making super contributions before or after tax (from 45 per cent in 2004 to 51 per cent in 2005); and
- A three per cent increase in the number of companies giving employees a choice about how they want their super invested (from 87 per cent in 2004 to 90 per cent in 2005).
"Two factors have contributed to these changes - the recent legislative changes to super in Australia, and the emerging willingness of employers to offer staff flexibility and choice as part of their overall remuneration package," Mr Knox said.
Other key figures from this year's Australia Benefits Review include:
- the first rise in average voluntary turnover since 2000 (up 1.1 points to 12.8 per cent);
- a continuation in the trend for companies to offer non-financial rewards as employee motivators. In 2005, 86% of the organisations surveyed offer non-financial rewards, compared to 76% of organisations in 2004, 74% in 2002 and 55% in 2001;
- on average, companies are predicting an overall increase in remuneration of between 4.3 and 4.5 per cent, compared with an average of between 4.1 and 4.2 per cent predicted last year.
Mercer collected data on remuneration and benefits management from around 220 Australian organisations operating in all major industry groups and sectors for the 2005 Australian Benefits Review.
