We are looking at introducing salary packaging as a benefit to employees. What things do we need to consider?
When introducing a salary packaging option to employees, there are a number of steps you will need to take to ensure the process is well implemented. Some things to consider are:
- Have a clear understanding of current remuneration and benefit arrangements offered by the organisation
- Discuss the possible introduction with the tax and/or finance team in your organisation to get their advice and support
- Develop a fully costed proposal that outlines the positives and negatives of introducing remuneration packaging including benefits to be offered, how the administration will be handled and a detailed communication program
- Seek approval from senior management for program introduction
- Find a suitable outsourced provider to handle the administrative processes (if applicable)
- Work through the communications program and ensure employees understand the issues associated with remuneration packaging