EmployEE valuE proposition: how to be an employer of choice
MANY COMPANIES TALK ABOUT being employers of choice but as competition for keeping as well as attracting staff heats up, employers and their executives have to do more than just pay lip service. According to a recent study by a recruitment firm of more than 2500 people, they found that 56% of employees are actively or passively considering a new job at any one time. They go on to say that the cost of turnover for employers (including recruitment, hiring, induction and training) equates to somewhere between 50-150% of a person’s salary. There are though some measurable things corporate/ employers can do to attract and keep the best people and these are categorised as follows: 1. Leadership Studies show strong leadership is the single most powerful feature in motivating and keeping company employees. 2. Company This encompasses everything about the company including reputation, values, culture and its contribution to the community. 3. Job How interesting, challenging or compelling are the every day aspects of the job as well as having the resources and training to achieve the goals. 4. Rewards This is in the main employee compensation or employee wages. But a reward also
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includes career prospects and development opportunities, with another becoming a more soughtafter aspect of one’s remuneration package – flexibility. One of the simplest forms of flexibility is being able to offer Salary sacrifice options. These include: • Novated Leases • Associate Leases • Additional Superannuation contributions The CarWrapTM Package is RACV Salary Packaging’s premium motor vehicle novated lease option. With it, employees can salary package a vehicle under a fully maintained novated lease. This is an arrangement where all of the operating costs relating to your vehicle are included as part of your salary package. With regular payroll deductions from predominantly your pre-tax salary the following items are included: • the lease finance and other operating expenses net of GST • fuel allowance for nominated kilometres at discounted rates • re-registration for the term of the lease • choice of comprehensive insurance, with comprehensive RACV SP fleet insurance available • other optional RACV SP-provided insurance provisions such as GAP or auto equity shortfall insurance and involuntary redundancy insurance
RACV Fleet Care Business Packages – Australian Business Auto Magazine (six issues per year) – Show Your Card & Save Blue Business Card available – Technical Motoring Advice available – Access to RACV Public Policy personnel for advice – Dedicated Fleet Administration personnel – One point of contact – One Invoice Business package for vehicles up to 2.5 tonnes includes: – RACV Emergency Roadside Assistance – 24 hours per day, seven days per week – Vehicle coverage up to 2.5 tonnes for towing – 30km towing in metropolitan Melbourne or to a regional Service Centre within a distance of 140km – 8 calls per vehicle pooled across entire fleet – Rental vehicle benefits – Taxi benefits – Accommodation benefits – Ambulance assistance – Fuel & Locksmith benefits To find out more on RACV Emergency Roadside Assistance packages call Frank Robertson on (03) 9790 3098.
Fleet buyers on track to go grEEn
A UNIQUE EVENT got on track in Melbourne on the 14 April when fleet managers from across the nation, including RACV Fleet Care business customers, were given an opportunity to testdrive 31 low emission vehicles (LEV). The Green Wheels Drive Day and Forum at Sandown International Raceway was organised by the LEV Automotive Partnership, a joint initiative of Future Climate Australia, RACV and EPA Victoria. About 80 fleet managers from local, state and federal governments, private companies, fleet-leasing businesses and hire-car operators attended this Australian-first event which achieved coverage on Seven Nightly News, and in The Age, Herald Sun and various radio and printed news publications. Future Climate Australia Executive Director, Henry O’Clery, said the day’s event had been prompted by soaring fuel costs combined with emerging requirements for companies to log and pay for their greenhouse gas emissions. “New vehicle sales nationwide had exceeded 1 million for the first time in 2007, with more than half of these being purchased for fleet use. However, only 13 per cent of these fleet vehicles actually qualify as low emission vehicles under LEV Automotive Partnership criteria.” Mr O’Clery said. “We saw a real need to showcase vehicles that are both ‘fit for purpose’ and currently available in Australia while having a much reduced impact on the environment,” he said. Mr O’Clery acknowledged that in many cases fleet managers’ hands are tied as there is a preference or even requirement for their company or government department to purchase cars that are locally made. “The problem here is that Australian made cars lag well behind their European and Asian equivalents in terms of emissions ratings,” he said. “In fact, all 31 LEV vehicles representing 12 manufacturers present at the Drive Day were imported due to no locally made vehicle currently meeting LEV criteria.” As an indication, the average emission rating for new cars sold in 2006 was 230 grams per kilometre in Australia, while in Europe it was 161 grams. The Drive Day, Forum and resultant media coverage sent a strong message to local manufacturers to look at ways to progressively incorporate LEV technology in Australianmade vehicles. At the same time, the event highlighted the benefits for businesses to get in early and begin incorporating LEV vehicles into their fleet. “We want to highlight that a significant opportunity is being missed by fleet managers in the potential reduction of vehicle emissions as the climate change challenge gathers speed,” said Mr O’Clery. Manufacturers represented at the Drive Day included Audi, Holden, Honda, Hyundai, Lexus, Mitsubishi, Peugeot, Renault, Saab, Skoda, Toyota and Volkswagen. The event was also used to launch LEV Automotive Partnership’s new Fleet Buyer’s online Vehicle Comparison Calculator which can be found at www.greenwheels.com.au. – Henry O’Clery is Executive Director of Future Climate Australia and convenor of the LEV Automotive Partnership.
Example of a Novated Lease An employee on an annual salary of $45,000 wishing to salary package a $30,000 vehicle has the potential to receive a net benefit per annum of approximately $2,096. On-road cost of vehicle $30,000 Term of lease 36 months Annual kilometres driven 20,000 Annual salary $45,000 Monthly reduction in take home salary after tax: $987* Benefit per year: $2,096** * Includes finance lease, fuel, service, re-registration, insurance, fees, RACV roadside service and FBT. **Figures accurate as of 1 April, 2008
• roadside assistance • tyres and servicing at authorised providers, charged at a discount on normal retail prices • RACV SP management fee • FBT liability A key feature when salary packaging with RACV SP is the ability to log in to the secure client area within our website. This gives you access to a number of reports including: • The “Vehicle Transaction History”. This report will show your actual expenditure versus the budget set when you commenced packaging. • An “Account Summary” report based upon your own individual circumstances which is a transparent report showing all the costs associated with packaging. • Ability to view the kilometres travelled versus the nominated budget. This is important because
you are required to achieve the kilometres nominated to avoid any additional Fringe Benefits Tax (FBT). Many companies believe that their competitive advantage is their unique culture: however if you can’t attract and retain the right people, your company culture will soon stop delivering any advantage. For further details please contact: RACV Salary Packaging Level 10/530 Little Collins Street Melbourne, Victoria 3000 Australia Telephone: (03) 9909 7848 Website: www.racvsp.com.au Email: packaging@racvsp.com.au RACV Salary Packaging operates as Direct Salary Packaging Pty Ltd (ABN 91 907 420 052) outside Victoria.
Frank Robertson Business Products Manager Member & Motoring Services RACV Ltd Tel: (03) 9790 3098 Fax: (03) 9790 3065 Email: frank_robertson@racv.com.au Web: www.racv.com.au
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