How to be SUPER competitive with your industry rivals!
As promised, we are continuing our mission to help SME’s attract super-hot talent in the market away from the sexy 'large corporate' competition. Our plan is for you to avoid the expensive bidding war from the start, and get you making smarter offers that won’t cripple your profit margins! Our first hot idea was to give a little extra annual leave. A way to give a little to get a lot better!
Now here is our next SUPER hot idea ….. drum roll please……
SUPER…………………..annuation!!!!
Yeah yeah I get it, Superannuation is not the sexiest of topics and it’s no holiday! But it is a massive draw card in today’s market! Again, keeping you off the negotiation table and into that space where you are looking out for your great new talent. Let me show you what this looks like.
On the average Australian salary of $70,000 per annum this is the super contribution:
9.5% (minimum standard) - $6,650
So, let’s look at what a little more super would actually cost you:
10% - $7,000
11% - $7,700
12% - $8,400
Now, for you to offer 12% super (which is amazeballs and sounds soo generous!) you are looking at an increase in payment of only $1,750 over the entire year! This is less than 50% of the usual $5k negotiation that we experience at this salary level AND how much more attractive does 12% super sound over the measly 9.5%..?!?!
But, if that’s not enough to convince you, let’s look at more positives:
The employee doesn't get taxed on this!
This is an investment in their future. Not only do they receive the additional contribution from you, but as time goes on they are earning interest. Now look at you building their retirement wealth!!
More mature candidates are definitely invested in their superannuation contributions because the time is edging closer, but don’t be fooled, the younger population are so much more educated and knowledgeable about super so this will definitely play into their consideration!
You receive the employer tax deduction of 27.5% per dollar contributed up to the maximum contribution amount of $25,000! No Fringe Benefits Tax on this idea!
It is not all slippery slides and gum ball machines when it comes to getting the best people. And when you can’t fight a war with the same weapons, it is all about your tactical approach.
So let’s get SUPER excited, and start playing around with how you can position your package to satisfy the next hot candidate you find!
Again, stay tuned. More savvy ideas are on the way from the Astute Recruitment & HR team!