Employee Remuneration, Benefits, Incentives
Checklist Guide
ABOUT
Do you pay your staff accurately and on time? Do you have relevant benefits and incentive packages in place?
1. We are paying all our employees accurately and on time in accordance with employment legislation i.e. Fair Work Act, Awards, Employment Agreements
Why is it important?
- You are required under the law to pay your employees the correct amount on time.
- You are required to ensure you pay your employees under the correct Modern Award and/or in line with Employment Agreement terms and conditions.
- You will attract the right people to apply for roles if you are paying in line or over and above the Award rates.
How can I tell if I meet this in my business?
- You know which roles are classified under which Modern Award.
- You know the Award rate for each role under the Modern Award.
- Employment Agreements are provided to all employees.
- The employees are paid in line with the Modern Awards.
- Employees are paid according to the communicated pay schedule.
What do I need to do to meet this item?
- Assess each role to establish which Modern Award is relevant.
- Assess employees pay rates in line with the relevant Modern Award.
- Use an Employment Agreement template.
2. We maintain an accurate staff list with all up to date details i.e. names, titles, employment type, anniversary dates, probation period, salary and bonus/benefit details etc.
Why is it important?
- You need to maintain staff information for seven years under the law.
- You may need to refer back to any information in the event of an audit, performance concerns/issues.
- You may need refer to the information if you are offering another employee the same term and conditions as another employee to ensure pay/bonus equity is maintained.
How can I tell if I meet this in my business?
- You have employee records (either hard copy or electronically which are up to date at all times.
- Each employee record has all the relevant information stored.
What do I need to do to meet this item?
- Establish an employee file/record for each employee.
- All relevant information is filed in the individual’s record.
3. All employees receive a copy of their pay slip or have access to download an electronic copy
Why is it important?
- All employees are entitled to receive confirmation of their pay which includes entitlements information as well as tax paid, https://www.fairwork.gov.au/pay/pay-slips-and-record-keeping/pay-slips
- You ensure that you maintain a record of pays to ensure you pay the correct taxes and Workcover premiums.
- You ensure that you meet your obligations under the ATO Single Touch Payroll, https://www.ato.gov.au/Business/Single-Touch-Payroll/
How can I tell if I meet this in my business?
- Each employee receives a payslip either electronically or hard copy.
- Each employee’s payslip communicates leave entitlements, superannuation payments and tax information as well as their net pay.
- You have Single Touch Payroll in place for your business.
What do I need to do to meet this item?
- Ensure you have the ATO Single Touch Payroll in place.
- Ensure you have a pay process which gives employees a payslip which includes all the relevant information.
4. Salary decisions are approved by the appropriate Director(s) and based on performance reviews/feedback and KPIs (not on personal biases)
Why is it important?
- An effective and high performing business rewards their employees based on their contribution and performance.
- Salary increases are based on a transparent process which all the employees are included.
- You will lose high performing employees if the salary review is based on personal biases.
- You will build a reputation in the industry that you reward employees based on personal bias. This action may result in difficulties attracting the right fit employees.
- Director(s) need to approve salary/benefit increases (as well as new hire salaries) to ensure there is equity in the business.
- Director(s) need to approve salary/benefit increases (as well as new hire salaries) to ensure there the business can afford the increases.
How can I tell if I meet this in my business?
- You have a consistent salary review process based on performance, feedback and achievement of KPIs.
- Director(s) sign approve salary/benefit increases and new hire salaries.
What do I need to do to meet this item?
- Director(s) salary approval process in place.
5. We undertake regular benchmark comparisons of our salary and benefits packages to ensure we remain competitive (At least annual)
Why is it important?
- It provides a consistent base line to assess salaries in your business with general industry rates.
- You need to pay competitive salaries in order to keep your high performing employees.
- You need to pay competitive salaries to attract the right fit employees.
- It communicates to the employees that you are using independent information to assess salaries.
How can I tell if I meet this in my business?
- You use a Salary Guide to review salaries and benefits.
What do I need to do to meet this item?
- Utilisation of a relevant industry Salary Guides.
- Salary Guide informs salary decisions.
6. We have a clear policy in place reminding employees that salary information is confidential and they are not permitted to discuss their salary or benefits with other employees
Why is it important?
- Having a clear policy in place communicates to the employees that you are serious about keeping all salaries/benefits confidential.
- You may be paying different salaries to people in the same job, with the same qualifications, same responsibilities.
- You want to ensure that salaries/benefits do not create any friction between employees.
- You ensure that salary conversations do not affect the business’ culture and morale.
How can I tell if I meet this in my business?
- Managers and leaders are not asked questions from employees about another employee’s salary.
- You have a salary confidentiality clause in your Employment Agreement.
- You pay the same salaries for the same role which requires the same qualifications with the same responsibilities.
- You have a transparent salary review process in your business.
What do I need to do to meet this item?
- Salary review process.
- Salary confidentiality clause in Employment Agreement.
7. We have a documented culture code document which reflects the lived experience of working in our organisation and which is used to assist with recruitment, performance management, communication and expectation management.
Why is it important?
- The culture sets out how you do business, how you interact with each other as well how the team communicates with the outside world, e.g., clients, suppliers, etc.
- Your culture is the formula, the DNA that provides guidelines, boundaries and expectations for your team and your customers, and is the primary platform to inspiring and motivating your people, and is the most powerful resource you have to attract, recruit, hire and retain the highest level of talent to your business.
- The best people always want to work with the best businesses, and the best people are the catalyst for creating ongoing business success.
How can I tell if I meet this in my business?
- A culture code document is used for recruitment, selection, performance reviews as well as external stakeholder communication and process.
- You have a high performing business with no behavioural issues.
- The business culture is so strong that employees select to leave.
- The culture communicates performance and behaviour expectations as well as client service levels.
What do I need to do to meet this item?
- Create a culture code document which outlines values, vision, performance and behaviour expectations.
8. We have implemented a range of employee benefits which have been developed to match our company culture and which match the expectations of our ideal team members.
Why is it important?
- Having a good benefit program in place helps keep employees happy, remain loyal to the business, and retain those who are the future of the business.
- Employee benefit programs reward and recognise the right performance and behaviours which are in line with the business objectives.
- It increases the level of productivity at work, reduces the employee turnover, generate higher profits.
- It can increase customer satisfaction and retention.
How can I tell if I meet this in my business?
- The right employees are choosing to stay working for the business.
- The benefit program results can be measured via a number of business KPIs.
- The benefit program Return on Investment (ROI) can be measured.
- You are recognising the right behaviours, performance and customer engagement.
- The business achieves it business strategies and objectives.
What do I need to do to meet this item?
- An employee benefit program which rewards and recognises the right behaviours, performance levels and client expectations.
- A system to measure the success and ROI of the employee benefit program.