In a recent article, Fairfax’s editorial team noted the high cost of hiring and firing an employee while paying for the salaries of the employees.
The cost of paying for an employee’s salary can range from $30,000 to $120,000 per annum, the article states.
The article also noted the financial impact of this on employees’ productivity.
According to the article, an employee earning a salary of $100,000 could lose $2,500 of productivity in one year because of a $100 bonus.
The same employee could lose a further $2.50 per day in productivity because of the $100 payment, it added.
But what if you can find an employee who earns more than $100K per annumn?
That would leave $10,000 for a salary, according to the report.
A person earning $100k per annumber, could lose up to $6,000 in productivity in the year, or $20,000 if they were to take on a new employee, it states.
While a large amount of the cost of a workplace can be mitigated by employing a more flexible employee policy, some employers can be more cost-conscious when it comes to employing an employee with more flexible hours, it says.
For example, if an employee is in a job for a certain amount of time and has a lower hourly rate, it could be a good idea to consider the employee’s pay-cut option.
If the employee is able to work flexibly with the employer, it may make sense to use a less expensive employee benefit package, such as an annual or life-insurance policy.
However, the report says this should be done with an open mind.
“For some employees, a salary offer will be too good to refuse,” it says, “but a company should look at other factors that may be more valuable, such the employee may have more disposable income to spare, or the employee might be able to meet other priorities in the workplace.”
What if you want to recruit someone but don’t know how to find an available employee?
You can still use your employee card to look for candidates and ask them for a pay cut.
However you do it, it’s important to note that you won’t be able find an eligible employee unless they have been paid a certain percentage of their salary for the past six months, according the article.
That’s because a salary cut is considered an employee benefit, not an employee compensation package, the editorial team states.
This means that, even if you have the right employee card, the employer can’t give the employee an offer because the employee won’t have been eligible for the payment.
The report states that employers should ask candidates whether they can use their employee card.
If they can, they should consider using a lower rate to cover the salary.
Employers can also try looking at other options, such applying a non-payable employee discount, and hiring an employee from outside the organisation.
“The pay-cuts should be part of the job offer,” the report states.
If you need help looking for an open position, contact a recruiter for advice.
You can also contact the Human Resources Department at the ABC or the Human Rights Commission.