Tick tock – that is the sound of the clock running down for the end of the current financial year. Which means you need to be ready for the regular run of EOFY jobs with which you must comply – and the one that will be top of mind for some of your team, will be the annual increases to their pay rate if they are paid an Award rate.
Change is coming – what do you need to do?
In 2016, the increase to minimum wages was 2.4% and we anticipate the level will be similarly adjusted come July 1 2017. Employers need to be ready for the change and have their payroll systems updated with the new rates along with all the other end of year employee ‘stuff’ such as:
- Last superannuation remit for the financial year
- Payment summaries
- Reviewing and updating budget to allow for any award increases
Want to make the news?
We’ve been seeing a lot of news stories lately about underpaid workers. Think George Colombaris and more recently, Adrian Zumbo. These stories make great fodder for news outlets as they feature very successful public personalities and they drive ratings as outrage grows. But it is not just the famous who can make mistakes in their payroll practices as lesser known businesses easily can, and do, get it wrong – they just don’t always make the nightly news!
So let’s talk best practice....
The end of the financial year is the perfect time to undertake an audit of a number of areas that relate specifically to your team and their remuneration. Areas that should be earmarked for review include:
- Salary reviews for those not impacted by award increases – that is, for those already paid above the award rate.
- Assess wages and salaries to check for parity across your business – where do you stand in terms of market rates?
- Are you appropriately rewarding staff who have performed well?
- Have you ensured that everyone is still at or above their minimum entitlements under their respective Award or EBA.
Planning for the future
This is also your opportunity to get on the front foot and plan out any further investment you would like to make in your staff for the coming financial year.
- What training will benefit your staff that will in turn, have a positive impact on your business? Are there other forms of professional development you can consider for your team?
- Do you have a reward and recognition program in place? Is it time to implement one or does your current process need reviewing and updating?
- Have you assessed your staffing needs for the next 12 months? Do you anticipate growth? Will you require an increase in resources?
If you need assistance with your end of financial review or you require advice on best practice for this process, contact the HR Staff n’Stuff team via email or on 9590 0844. We’re here to help!