Employer super has been a challenge for almost three decades. Almost every party involved is not managing it as well as they could be, or simply doing it badly. Whether you’re an employer, a regulator, a platform, an adviser, an employer or an employee, no one appears to be operating with the right service model to optimise everyone’s individual asset.
That sounds like a damning indictment of every party involved with employer super but it is not intended to be. There are many individuals who have been involved in developing some sort of service model for employer super but unfortunately every current service model being applied to employer super is seriously deficient in optimising the value of each individual’s asset.
Commercially, fewer people than you think know how to manage change for improvement, especially when it comes to large, complex assets like super. Under current service offerings around employer super, employers can change platforms but, in truth, there is no change in the overall outcomes being delivered. Tender consultants will happily conduct a tender and change your product provider but the employer has not usually fully identified what improvements should be expected from the change.
All product providers market their branded solution around employer super as being the best solution. Unfortunately super is an issue that everyone has an opinion on. As a consequence, the public can be both misled and misinformed about which product option is actually “market leading” and which service options actually deliver a measurable value.
Each entity with an involvement in delivering beneficial services around employer super are not transparent about where the product and service model fall short.
Through the Royal Commission, super has been through yet another examination of the value provided by the various service options broadly available from the market. Everyone has an opinion about what needs to be done:
Super is an employer funded employee entitlement and enlightened employers are now realising it can be seen as a dead cost and a future problem through their duty of care or indeed, to date, it has been a missed opportunity in managing what is a major cost to the business and an employee benefit of significance.
The future of employer super is not clear to anyone. For medium to large size employers, super is an important remuneration benefit and a differentiator, if properly managed, as an employee wealth creation scheme.
Not all product service models are the same and yet, in terms of product, there are obvious similar features in terms of functionality but always major differences in the true value being delivered through the quality of their servicing. Every employer has an obligation to understand the difference between service activity and whether or not value is being delivered to an employee’s account balance.
Any manager needs to be sure of their decision making capability. The quality of outcomes is enhanced by making decisions based on knowledge and not someone else’s information. The difference between information and knowledge is surely based on evidence and being careful to recognise the opinion of vested interests.
Should you want to have a deeper examination of your employee super benefit, please feel free to look through our website www.axisfg.com.au or call us on 1800 111 299 or email us at email@example.com
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.