Remuneration and Employee Benefits

COPYRIGHT

Published by Skills Strategies International

Perth Office
Unit 5, 199 Balcatta Road Balcatta WA 6021
Phone: (08) 6143 2180
Fax: (08) 9240 8426
Mandurah Office
2/7 Kulin Way, Mandurah WA 6210
Phone/Fax: (08) 9586 8892
Website: www.skillstrategies.wa.edu.au

Copyright 2016 Skills Strategies International

All rights reserved. Except under the conditions described in the Copyright Act 1968 of Australia and
subsequent amendments, no part of this resource may be reproduced, stored in a retrieval system or
transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise,
without the prior permission of Skills Strategies International Pty Ltd.

Version:

1.0

Last Updated:

12 January 2016

If you are working on something that you really care about then you dont have to be pushed. The
vision pulls you. STEVE JOBS

Skills Strategies International SSI Remuneration Policy January 2016 V1

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Contents

Introduction ............................................................................................................................................ 4
Links to Strategic Direction .................................................................................................................... 4
Definitions ............................................................................................................................................. 4
Implementation ...................................................................................................................................... 5
The aim of the Remuneration policy is to ............................................................................................... 5
Allowances ............................................................................................................................................ 5
Short term incentives (bonuses ............................................................................................................. 5
Incentives for different staff groups ........................................................................................................ 5
Incentives will be aligned to achievements of KPIs that will be aligned to the different employee group
performance requirements..................................................................................................................... 5
Rewards ................................................................................................................................................ 5
Through the management team we will: ................................................................................................ 6
Taxation requirements ........................................................................................................................... 6

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Introduction
Staff are the most important and expensive asset of any organisation. While financial remuneration is not
everything for an employee, it is significant in retaining high performing, committed personnel. This is
especially true in a people oriented business such as training and consultancy.
This policy aims to:
Align employee remuneration to a benchmark set by xxxxxx
Present progressive incentive structures to encourage outstanding performance, and hence
improved client outcomes and financial returns
Mitigate the business risks associated with poor performance and high employee turnover.

Links to Strategic Direction

The Remuneration and Benefits policy is linked to the 2015 Strategic Plan and may be updated as changes
occur in the Strategic Plan.
The Strategic Objectives that link to the Remuneration and Benefits policy include:
A staff profile and learning and development strategy is aligned to workforce requirements and highly
performing staff
Performance management strategy has a focus on staff development to ensure staff are qualified, skilled
and knowledgeable
An incentive program rewards staff for outstanding performance in achieving business development
objectives
This policy specifically focuses on the reward and recognition aspects of retention.
A culture of reward and recognition is just one of a range of factors impacting on why staff choose to
remain with Skills Strategies International

Definitions
Allowances and Other Benefits
Allowances and other benefits may be paid to employees to support organisational objectives. Such benefits may
include, but are not limited to, professional development costs, bonus payments or other individually negotiated
benefits or allowances.

Annual Review
Each Employee will participate in periodic performance reviews at least annually) measuring their
achievement against predetermined Goals. The results of the Annual Review will form the basis of
any remuneration review and eligibility for a Short Term Incentive (bonus) payment, if any.
Base Salary (Base)
For training and administration staff the base salary will be aligned to the Education Services (Post
Secondary Education) Award 2010

Goals (KPIs)
Goals (otherwise known as Key Performance Indicators) are to be specific, measurable and achievable
performance outcomes agreed in advance between the Employee and thei manager. Progress will be
reviewed between the manager and Employee periodically, and assessed annually.

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Implementation
The aim of the Remuneration policy is to

Attract, motivate, reward and retain high performing staff

Promote a close link between performance and remuneration

Reward significant outstanding performance that advances the RTOs goals and values and
are tied to specific accomplishment

Provide timely recognition for individual and team achievement

Provide rewards that are valued and meaningful to staff

Be financially sustainable to the work unit

Be simple to understand and operate

Be clearly communicated to staff

Allowances
Employees may be paid an allowance or other payment associated with their role, over and above their
base salary, on either an ongoing or temporary basis.
Any allowance paid will be taxed in accordance with current taxation legislation and will not be
deemed to form a part an Employees usual base salary (for the purposes of leave, remuneration
reviews and/or other calculations, unless otherwise required under legislation).

Short term incentives (bonuses

The company has a Incentive Program which is designed to recognise and reward Employees
who meet the required individual, team and Company stretch objectives.
The bonus payments are not a right of employment they are made for performance above and
beyond the come-to-work requirements of the job. Any such payments made represent the
recognition of excellence achievement of stretch objectives or beyond, and importantly, the
manner in which those achievements were attained
Incentives for different staff groups
Incentives will be aligned to achievements of KPIs that will be aligned to the different employee
group performance requirements.
Trainers will have KPIs aligned with sales, learner completions and positive evaluation responses.
Administration staff will have KPIs aligned to sales enrolments,, credit control and meeting certification
targets.

Rewards
Recognition in the form of positive feedback and celebration of achievement should be a matter of
daily management and good business practice.
Importantly, all managers are responsible at the local level for contributing to a culture that
rewards and recognises staff achievements.
Managers will Implement reward programs in a manner that is consistent with the principles of
reward recognition and retention
Decisions of the implementation of reward initiatives will be decided at the management meeting
We will strive to develop a culture of continuous and sincere reward and recognition of staff
achievements

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Through the management team we will:

Provide guidelines regarding rewarding and recognising staff

Work in partnership with departments in developing reward strategies

Ensure equity of access

Oversee the use of reward programs

Review and update reward programs in line with best practice and organisational suitability

Process applicable monetary rewards

Taxation requirements
Taxation payments will apply to lump sum reward payments and bonuses.
The amount of tax to be withheld from an additional payment is limited to a maximum of 49% of
the additional payment.
The company will have a FBT liability as a result of bonus and reward payments.
Superannuation payments will be taken from the bonus payment as it is considered to be part of
OTE (Ordinary Time Earnings)

Recording and monitoring performance

Employee performance will be recorded on the allocated KPI sheet

Team leaders will monitor records weekly
There will be a monthly distribution of rewards announced at the staff meeting
Bonuses will be allocated annually

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