Are you offering the right staff benefits to your employees? Businesses that invest time and effort in improving staff perks often see a direct impact on the company’s profitability and stability.
In this article, we will share what the Australian workforce really looks for when deciding between employers.
Key Takeaways
- Aside from mandatory staff benefits, many Australian employers include optional benefits to achieve a comprehensive benefits package for their employees.
- Next to salary, group insurance and flexible work arrangements are what employees look for in an employer.
- Effective staff benefits help the business to increase its profitability and longevity.
- Consulting a group insurance advisor will help you determine the suitable coverage for your employees.
What are Staff Benefits and Why Do Australian Employees Want Them?
Staff or employer benefits form part of employment packages designed to attract and retain talent within the company or organisation, apart from the standard salary. These common perks help the company to stand out in the market when hiring and retaining employees.
Types of Employee Benefits
In Australia, businesses curate their staff benefits by combining the statutory benefits (legally required to provide) and discretionary benefits (company-initiated benefits). Below are the common benefits that a company offers:
Mandatory Staff Benefits
These are the legally required benefits that every employer in Australia must provide, according to the National Employment Standards (NES). The inability to provide any of these benefits can jeopardise the business.
Workers Compensation Insurance
This mandatory benefit covers the costs of “work-related” injuries or illnesses, whether it is loss of income, medical bills, or rehabilitation. Each state and territory has its own schemes and requirements for this benefit.
Superannuation
Employers are required to pay superannuation contributions of 12% of an eligible employee’s salary.
Leave Entitlements
Depending on the status of the employee, these mandatory benefits help them achieve work-life balance.
- Annual leave benefit – full-time employees are typically given up to 4 weeks of paid annual leave.
- Personal and carer’s leave benefit (sick leave) – full-time employees are typically given 10 days of sick leave or carer’s leave.
- Long service leave benefit – employees who have been with the same company for an extended period of time are typically eligible for long service leave.
- Parental leave benefit – Employees are entitled to 12 months of unpaid job-protected leave after 12 months of service.
Professional Development
A defined career ladder and career support, such as company-initiated training, seminars, and workshops, help the employees to stay motivated and effective at work. These employer benefits have a direct impact on the company’s profitability and stability.
Supplementary Staff Perks
While optional, these additional staff perks have been proven to increase employees’ productivity and motivation to stay with the company.
Life and Disability Insurance
Companies use group insurance to provide a uniform financial support to their employees when they need it the most. Most group employee insurances offer the following:
Life Insurance (death benefit) – pays a lump sum benefit amount to the employee’s beneficiaries in case of death or diagnosis of terminal illness.
Total and Permanent Disability (TPD) Insurance – pays a lump sum benefit to employees when they become totally and permanently disabled and are unable to return to work again.
Income Protection Insurance – can replace up to 70% of the employee’s pre-disability income when they become temporarily unable to work—due to severe illness or injury.
Flexible Working Hours
Accelerated by the recent pandemic, some businesses are adopting flexible working hours arrangements for eligible employees. This allows key employees to balance their current lifestyle status while remaining productive within the company.
Healthcare
Some companies also provide health insurance to help their employees cover medical costs that are not covered by Medicare.
Bonuses
Properly incentivising employees for their hard work is an effective way to demonstrate the company’s value for its employees. These can include annual or performance bonuses, commissions, and salary increases.
Situational Allowances
Subsidising work transportation costs, free on-site meals, or work-at-home expenses further encourage your employees to be punctual and productive.
Health and Wellness Programs
Investing in gym memberships, wellness programs, or mental health counselling can help your employees relieve work stress and stay productive.
Company Resources
Ensure that your employees are equipped with the necessary tools and resources to effectively complete their work. This can include the office machines, updated work software, office pantry supplies, company cars, or a credit line for your salespeople.
What are the Advantages of Offering Staff Benefits as a Business?
Employees are the lifeblood of every company. Offering the standard and optional staff benefits is how a company can ensure its employees stay focused and loyal.
Attract New Employees and Boost Retention Rates
Aside from the competitive salary, employees look for an employer that invests in better staff benefits. When a company ensures a workplace that is supportive of its staff’s needs, has a work-life balance, and clear career development, it results in attracting top talent and keeping them loyal to the company.
Increase Morale and Employee Well-being
Employee burnout and ineffectiveness can sometimes stem from the employee’s dissatisfaction with the company. However, having well-planned employer benefits boosts employee productivity and motivation to perform their best.
Optimise Employee Performance
Investing in having a positive work environment, promoting employee engagement, effective staff perks, and work-life balance is a recipe for improving your employees’ performance.
Develop Cost-Effective Strategies
While it is ideal for a company to offer multiple employment benefits — within the company’s capacity — carefully identifying the additional benefits that will give the highest return on investment is crucial. As common practice, employers use surveys and data to choose which staff perks most resonate with their employees. Also, using tax‑effective structures like salary packaging to stretch limited budgets further.
Competitive Advantage
Motivated employees support the growth and strength of a company. A competitive pay grade and additional employment perks create a competitive advantage for the company, whether attracting the right partners, customers, or clients.
Learn More About Employee Insurance Benefits From the Experts
Working with a group insurance expert is advisable when crafting your employment benefits. Curo Financial Services specialises in helping companies of all sizes to get the most suitable employee insurance in the market. Curo’s group insurance services include:
- Fact-finding and risk assessment, and analysis
- Presentation of group insurance options
- Expert group insurance advice
- Policy administration and management
- Expert group insurance claim advice
Explore your employee insurance options — send us a message or contact us.
FAQs
What is the most common employee benefit offered by employers?
Employer superannuation contributions are the most common employee benefit offered by Australian employers. This is due to the fact that it is mandated that employees receive them.
What are the least desirable employee benefits?
Least desirable benefits often include niche perks like end-of-trip facilities (e.g., showers for cyclists), employee assistance programs seen as outdated, and community volunteering opportunities, which few companies promote and employees rarely prioritise.
What do employees value most?
At present, flexible working arrangements are the most valued employment benefit, followed closely by group life insurance, which offers affordable lump-sum protection for death, disability, or terminal illness without individual medical underwriting.
What is the meaning of work perks?
Work perks refer to additional non-mandatory benefits and rewards beyond base salary and statutory requirements, such as gym memberships, professional development, or flexible schedules, aimed at boosting employee satisfaction and retention.
General Advice Disclaimer
General advice warning: The advice provided is general advice only and in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.
Factual Advice Disclaimer
The information I have provided you is purely factual in nature and does not take account your personal objectives, situation or needs. The information is objectively ascertainable and, therefore, does not constitute financial product advice. If you require financial product advice you should consult a properly licensed or authorised financial adviser.
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Last Updated on March 2, 2026 by Brent Satill
