Super is the second biggest employer funded employee entitlement in Australia. Delivered well it can have a positive impact on an employer’s workforce by transforming super funds into a superior employee benefit which can be used to attract, retain, and motivate employees.
Importantly, employers are in a unique position to facilitate the optimisation of their employee’s super funds, by adding value through their corporate super fund. These plans can offer great benefits for employees when it comes to investment options, insurance cover and fees.
Whilst they might be less flashy than perks like free food, extra time off, or wellness programs, the potential value and benefit to employees is undeniable.
Corporate super funds have the potential to be much more than just a set-and-forget obligation. A major part of any employer’s benefit offering, corporate superannuation is a way for employers to give employees access to sound financial advice in the workplace and offer them a chance to maximise a significant asset that will play an important role in their future.
By investing time and energy into finding the right super fund for their workforce, employers can help to significantly improve the projected retirement incomes of their employees. So how should we evaluate superannuation funds as a benefit in the workforce?
Employers have a duty of care to their employees to ensure that they have a rigid system in place to evaluate the performance and service-level of their supplier. Whilst great pains are taken to evaluate the performance of almost all suppliers, super providers often fly under the radar as employers do not have the expertise to develop an uncompromising view of the suppliers managing their employee’s super assets.
The traditional product model creates this challenge for employers as there is a distinct lack of easily understood information and advice.
Employers are often reliant on a single source of direct input in evaluating the super value delivered: their current super product provider, whom views their main goal as retaining the account.
If an employer wants to examine other alternatives, they may talk to another super product provider. However, the sole aim of the other product provider is to win their business with no improvement in the value delivered.
Employers should access an external service with the capability to provide them with the evidential information required to evaluate their current product provider’s ability to deliver high financial benefit versus the cost of their service.
By getting the support and guidance of knowledgeable and experienced industry insiders who are free from the influence or ownership of a fund, employers will find themselves in a great position to ensure that their workforce super assets are managed well.
AXIS Financial Group can help you realise the full potential of your corporate super fund, get in contact today.
This document was prepared and issued by AXIS Financial Group (ABN 21 092 889 579, AFSL 233680). The information contained within it is not advice. It provides general information only and does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking with your financial adviser before making an investment decision. Information in this publication, which is taken from sources other than AXIS Financial Group, is believed to be accurate. However, subject to any contrary provision in any applicable law, neither AXIS Financial Group, nor its employees and directors, provide any warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it.