How to improve culture at no cost to your business

Employees are such an essential part of our business. In many cases, we can’t operate without them. In turn, we pay them, provide training and where possible promote them. For many people, this isn’t enough to satisfy the feeling of being respected and rewarded for what they do.

There are options to provide staff benefits that don’t cost the business directly, yet make the staff feel cared for while improving internal culture. Offering a solution that ensures that in the event of sickness, accidents and other medical issues, they and their families will be ok.

It’s all about making the right choice.

Superannuation is compulsory. Employees are entitled to receive a minimum of 9.5% of their gross income paid into this taxation retirement vehicle. Some employees elect to make their own choice of superannuation when they join an employer, and many others take the default fund offering. Is this the best solution?

Employers have a choice, no matter which industry they are in, to provide a corporate superannuation offering for their business.

What is corporate superannuation and how can it benefit you?

A comprehensive corporate or employer superannuation fund enables employers the ability to offer a staff benefit at no direct cost to the business. This type of superannuation fund allows staff the ability to join the new superannuation fund and benefit from lower fees, and a comprehensive insurance offering not available in other types of superannuation policies.

Employer superannuation fund in action:

These true stories are a perfect example of how powerful and important a good corporate superannuation plan could be for your employees.

Case Study 1

Issue

A male employee joined one of the corporate superannuation business plans we had in place in the business.

Three years before joining the corporate fund at the age of 27 he had cancer – spindle cell carcinoma, in his right arm.

He was unable to get insurance by applying through the normal process because of this pre-existing condition.

Solution

He joined his employer’s corporate superannuation fund and was provided without medical evidence, no loadings or exclusions, $650,000 of Life Insurance, $650,000 of TPD, and Income Protection of $7,000 per month with a 30 day wait and benefit period of two years.

The employee was ecstatic, not because he expected to get sick again, but because this provided him and his family certainty that if he was to get sick again, they would be ok.

Sadly, cancer returned six months later and, at the age of 29, the oncologist told him that he had less than six months to live.

Recognising the difficult position he was in, I developed a plan, and we were able to have a $650,000 terminal illness claim turned tax free through advice and ongoing monthly income protection payments.

In an amazing turn of events, through treatments and nutritional changes, he moved into remission and the money is still there for him and his family.

Case Study 2 – Power of positivity

Stress is often linked to financial worries, not only for the person going through the illness but also for the family that may be left behind. Having claims paid in uncertain times takes much of the stress off the table.

Issue

A further example of the benefits to people who have current illnesses where they wouldn’t usually be able to access comprehensive insurance without exclusion is that of a woman who had depression and anxiety due to events in her life.

Solution

She joined the corporate plan, again without the need for medical evidence, and was provided cover of Life, TPD and income protection.

The condition returned three years after joining the plan, and she was paid out a significant TPD payment and Income Protection.

In her case, this will continue until she is 65. The woman in question is in her thirties.

It is important to note

Superannuation and insurance aren’t the same. In many cases where insurance is provided within superannuation without medical questions being asked, claiming can be far more difficult as the devil of the detail is within the Product Disclosure Statement.

Terminally ill cancer patients have been provided pro-bono services through the Cancer Council program. From our experience, various superannuation providers, many within the industry superannuation fund network, have been extremely difficult to claim on and cause people an increase in stress in such difficult times.

Having the right corporate superannuation plan in place, for even the smallest of businesses, provides a staff benefit at no cost to the business. This has proven benefits for culture, staff care and loyalty. Something we all need.

 

This website contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.