Pay in the New Economy
Beating the Great Resignation with benefits
Flare has collaborated with leading consultancy EY to examine how the Great Resignation is taking shape in Australia, and how employers can best position themselves to retain and attract talent in the post-COVID economy.
A study of 7,000 workers in Australia demonstrates significant financial stress and an “underpackaged” workforce, with limited access to benefits or products that support financial literacy and wellbeing.
Among the study’s key findings:
- Employers of all sizes have an imperative to review the financial and personal benefits that they are offering their employees, or risk being left behind.
- The conventional approach of providing a static intranet page focussed on self-service misses significant opportunities for employee empowerment and engagement.
- 7 in 10 Australian employees are living pay-check to pay-check and have less than AU$5,000 in savings on average.
- There is significant merit in giving employees the option to access pay on-demand without charging interest or fees, as a part of a comprehensive suite of benefits provided to them by their employer.
- Australian workers have a clear interest in salary packaging like novated leases, with 76% wishing to take it up if offered. There are significant tax benefits to this for employees, yet many either do not understand or cannot access them.