Practical tips for enhancing financial efficiency and HR excellence

As a business owner, you’re vigilant about managing expenses to maximise returns on investment.  Every money-saving decision is worthy of consideration, so here are nine ways to save money.

Tip 1 Do not pay superannuation on overtime
As an employer, use OTE (ordinary time earnings) or wages to calculate the super guarantee charge. Overtime hours exceeding those defined in an award or overtime are not OTE, and no superannuation needs to be paid.

Tip 2 Do not pay any super above the threshold
Employers are required to pay eligible employees the super guarantee (SG) every quarter. However, you are not required to pay the SG above a certain limit – this is known as the maximum contribution base. The limit is currently set at $249, 080 per annum.

Tip 3 Ensure your employees take their annual leave each year

Encourage employees to utilise their annual leave, minimising annual leave balances, which in turn reduces your financial liabilities. An annual leave balance may be considered excessive if it surpasses 8 weeks (10 weeks for shift workers). Discover what to do when an employee’s annual leave accrual goes into excess.

Tip 4 Ensure employees complete leave forms for each absence

Failing to maintain accurate records can leave an employer with inaccuracies and errors which have a financial impact. Ensure leave forms are completed for any leave taken including personal, carer, annual and long-service leave.

Tip 5 Revamp your workplace harassment policies

Update your workplace policies and processes to remain legally compliant, as well as to prevent, reduce and mitigate against workplace harassment and the management of psychosocial risks. Training on these issues should be conducted for both managers and the general workforce at least once every six months to prevent negative effects on individuals, workplace culture, and productivity. More details on health and safety laws can be found by contacting your local work health and safety authority or the Fair Work Commission.

Tip 6 Ensure proper and effective candidate interview techniques and performance appraisals

Effective interview techniques and appraisals assist in the hiring of suitable talent, minimising turnover and ensuring legal compliance. These factors can also lead to increased positive outcomes in the workplace and a stronger employer brand.

Tip 7 Outsource your payroll to a payroll specialist, regardless of the size of your business

Outsourcing frees up time, allowing you to focus on your strategic initiatives and overall business growth. A recurring activity, payroll management can be very time-consuming. Outsourcing can help reduce errors and duplication of effort particularly in the case of complex Award requirements and regulations. Don’t forget that wage theft will be a criminal offence from 1/1/25.

Tip 8 Carry out reference and background checks on all new hires

It is easy to get carried away in the excitement that a new hire brings. However, it is prudent for an employer to carry out relevant and up-to-date checks on all new hires to verify skills, qualifications and information provided and to meet compliance requirements.

Tip 9 Implement a WFH policy
Embrace a hybrid work culture with a work from home (WFH) policy. This affords the flexibility to work from home one or several days a week, reducing commuting time and overheads. However, this policy should be supported by regular WFH audits, just as an employer is required to audit the workplace for work, health and safety issues. This audit should be conducted at least once every 6 monthd for any home workspaces used by your employees.

Wurth HR offers consulting and training on all of the areas above. Feel free to contact me if you have questions about any of the above matters.
▶ Contact David Wurth for an obligation-free discussion on 1300 900 741
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