It is important to measure the performance of your novated leasing program
Andrew Daly, Group Executive Customer Development, Maxxia, tells HRD about the importance of measuring the performance of your novated leasing program and how to boost the uptake of novated leasing by employees.
How can a quality provider boost the uptake of novated leasing by employees?
In terms of potential dollar savings and convenience, the benefits of novated leasing for your employees are pretty compelling. But with so much for new starters to take in from induction sessions and ongoing company communications, these benefit messages can easily get lost in the information overload.
With expert education and multi-channel communication support from a novated leasing provider, you can be confident that your staff are being engaged with relevant content that addresses their particular needs via their preferred communication channel.
By tailoring communication to different groups of staff according to their age and lifestyle, a best practice education program can use a whole range of channels - emails, posters, face-to-face and online – to increase awareness and participation.
Outsourcing to a provider who has the scale and expertise in employee education and engagement can ensure staff really understand, and then act on, the benefits of salary packaging their vehicle.
What other kinds of support can your business expect from a quality novated leasing provider?
Effective education is just one way your provider can take the hassle out of delivering a first-class novated leasing service. We’ve found that many Payroll departments simply don’t have the technology to make straightforward transactions and reconciliations for the service. So there is sometimes reluctance to promote novated leasing because program delivery is seen as being more trouble than its worth.
Outsourcing salary packaging transactions to an expert provider can take this burden off Payroll and HR. And with your service provider helping to manage the risks associated with novated leasing – such Fringe Benefits Tax (FBT) liability or outstanding payments to settle after an employee leaves - there won’t be any nasty surprises for your Payroll or Finance teams.
How can working with an expert provider enhance your internal brand and employee value proposition?
Car ownership can be a stressful undertaking. As discussed in Novated leasing - what’s in it for your staff? [Link], one of the most valued benefits of novated leasing is the peace of mind it brings to employees, knowing that all vehicle finance, insurance and maintenance is taken care of.
That’s why a consistent, professional level communication between a novated leasing service and each employee is so important. Staff will feel cared for when they’re given multiple opportunities to interact positively with their benefit provider - from reports and updates on what they’ve saved to reassuring reminders that all ongoing responsibilities for their vehicle are well in hand. By successfully providing peace of mind in an uncertain world, your business is looking after staff in a way that has real meaning for them.
Why is it important to measure the performance of your novated leasing program?
At Maxxia we often find clients are initially quite happy with their current novated leasing arrangement, whether they’re managing it in-house or through a third-party. But this sense of satisfaction generally comes from the lack of complaints they’re getting.
Unfortunately, this absence of feedback usually signals poor take-up of novated leasing and that means businesses are missing out on a significant opportunity to deliver value to their employees and drive engagement.
This is why we provide businesses with industry specific benchmarks a novated leasing program should expect to achieve. When our benefits assessment process shines a light on the comparative value a company is getting from their own offering, it really changes the whole conversation about how satisfied they are with what they currently deliver.
This is part two of HRD’s stories on novated leasing. To read part one, click here.
Andrew Daly is Group Executive Customer Development, Maxxia. Maxxia is the market leading provider of employee benefits programs for large organisations including salary packaging and novated leasing. Maxxia help strengthen the employee value proposition, so that organisations can attract and retain the right talent. To find out how your benefits program performance measures up contact Andrew Daly and his team on 03 9097 3361 today or visit business.maxxia.com.au/performance
