How to hold on to Your Employees During the Upcoming Boom in WA
If you live in WA you will know three things about the resources industry. It’s hard work, it pays well and there is always someone hiring. All three facts contributed to the skills shortage of 07, putting the power in the employee’s court. Job hopping became rife with miners and tradespeople picking and choosing positions that suited them and skilled labourers making a mass exodus from the eastern states.
Anyone in upper management knows that when you lose an experienced employee the costs in lost productivity and training far outweigh the costs of implementing strong employee retention plans. When WA beckons with opportunity over the coming years, many companies across the rest of Australia will need to have the competitive edge for employee satisfaction & retention. So what can companies do to gain the competitive edge?
Everyone knows Australians love their toys; you only need to observe how many new cars are cruising around Perth to know where a lot of those who venture to Boom town spend their hard earned dollars. This is why thousands of people have been moving to WA, to improve their quality of life and attain those extra luxuries they can’t afford in their current job. If only you could offer your staff a new car and increased income like the mining giants in WA. If you could offer such a service at no cost to your company it would be a no brainer, you would implement the program tomorrow………… that’s where novated leasing comes in.
Novated leasing is an easy way of retaining staff and best of all not many SME’s have started using it yet. It is a three way agreement between an employer, employee and financier. The employer pays the financier the obligation of the car repayment and other on-road costs elected by the employee. The employer then subtracts the repayment from the employee’s pre-tax salary, effectively reducing their taxable income. This means the employee pays less tax and takes home more disposable income; it’s basically a pay rise for the employee, all at no cost to your business.
Most novated lease providers will even take care of the administration side of things for you for free. So get in early while the next boom is still kicking into gear and secure your workforce by rewarding them with a new car and more disposable income. Don’t let the next boom blow away your productivity.
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