|Superannuation. As an employer it can often just be left as another item on the administration to-do-list. For many members it serves as that thing that you're a member of, rarely get an email about, and have to answer the same "what was the name of your first pet?" security question every time you go to login with your forgotten password.
However superannuation serves as an integral part of an employee's career whilst also forming an essential responsibility as an employer.
Setting employees up with a great super fund, designed to meet their needs is one of the greatest gifts you can provide as an employer - even if you might not receive the appreciation you deserve for providing your employees with peace of mind in their commitment to setting themselves up for retirement.
DID YOU KNOW?
The majority (70%) of Australian employees trust or support their employer's choice of super fund. Older workers trust their employer's choice of super fund more than their younger peers.
Source: Sunsuper 2018 Australian employee insights report
Superannuation will grow to be worth more than their house and will most likely become the most valuable thing they will ever own.
Considering the impact superannuation can have on your employees, it may be time for you to reconsider your company's default superannuation offering.
Doing so can make the administrative responsibility as an employer much easier. Harnessing the raft of extra benefits and member services provided by funds can lead to employee satisfaction across the company.
Choosing the best default superannuation fund
In what could be the $2.782 trillion question (that's actually how much of employee savings the super system in Australia manages according to APRA, March 2019), answering 'who is the best super fund?' is nowhere near as easy as it sounds.
Ask any expert and the simplest answer is 'super funds are all different, serving different members differently.'
They aim to provide the best service to their unique collection of members, tailoring investment options, insurance options and their digital footprints to satisfy the distinctive needs of their members.
The best example of this in action is in the names of the funds. Ranging from A to Zuper the names often can help in your search for the best funds. Often is the case, the industries these funds serve is in their name - for instance Media Super, Health Employees Superannuation Trust Australia (HESTA) and Construction and Builders Union Superannuation (Cbus).
Furthermore, finding funds that also cater to the demographic need of your employee base is essential. After all, younger employees want their super to grow instead of preserving capital.
Alternatively, finding a fund that can provide defensive asset options may be essential for your older cohort of employees.
How super funds can work with you to make your job as an employer easy
Super funds go to great lengths to ensure that you as well as your employees are comfortable with the way that their retirement savings are being managed.
Whilst it is illegal for super funds to incentivise your commitment to their fund, nominating them as your default, it is not illegal for funds to do the same to your employees.
Instead of gifts such as holidays, free wine and other exorbitant items, they may choose to offer financial literacy seminars or other basic financial advice.
On a serious note however, super funds - especially as your company's default provider - are committed to improving the working life of your staff, as well as their level of financial education and independence.
Likewise, they are committed to making your life as the manager of their superannuation guarantee much easier.
One-stop-shop clearing houses, performance reports, member newsletters as well as regional or state based representatives are just a few of the many services provided.
|DID YOU KNOW?
1 in 5 Australian workers say they would value greater access to their super balances to make them feel more on top of their super?
Source: Sunsuper 2018 Australian employee insights report
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It is essential then that you take your role as an employer seriously with regards to your employees super. You are in the box seat.
Ensure that your fund offers competitive solutions to your administrative problems, competitive fees and performance, as well as insurance and ancillary services to compliment the lives of your employees/members.
In doing so remember what your super fund job isn't; you don't have to be the in-house superannuation expert, you are not a financial adviser and you don't need to be helping employees join another fund or help them choose a better alternative.
After all, over $85 billion in compulsory superannuation contributions were paid in 2018, as such it should be an expense that you should take incredibly seriously, if not for your business but for your staff.
How to harness your default super provider as an employer
It's as simple as getting in touch with your provider and finding out what they can do for you - as well as potentially even asking what they have been failing to do for you.
Ask them the hard hitting questions. Superannuation is competitive and there are hundreds of providers, so it's in their best interest to always be doing their best for you, the one paying their bills.
If you aren't satisfied with the response from your fund then maybe it's time to consider your options. There are often a number of funds tailored to your specific industry. Take the electrical workers industry - Energy industries superannuation scheme, Electrical Industries Superannuation Scheme, Energy Super, or construction, CBUS and BUSSQ.
There is a plethora of options out there; it's just a matter of finding them. You can browse a full list of every super fund here with their contact details so you can get started straight away.
Want us to look over your default fund? Reach out by emailing us ... [email protected]
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