A common request we get from clients when carrying out recruitment campaigns of their behalf is to advertise a salary range that includes superannuation.  In this short HR tip, we are going to share why we typically advise against this strategy.

My name is Andrew Koleda & I am the Operations Director for On Demand HR and a big part pf our business is carrying out externally managed, company branded recruitment campaigns for our members.  So if your internal recruitment or traditional recruitment agent is not delivering results for your business, you can learn more about us and arrange for a no obligation consultation by visiting ondemandhr.com.au

In our view, we do not recommend carrying out recruitment campaigns that advertise salaries that are inclusive of Superannuation as it is public knowledge that Superannuation is scheduled to increase over the coming years.  This means that candidates will be well aware that this means that outside of pay increases, their take home salary will be effectively reduced in the future.

In our view, this perception will have a negative impact on both recruitment and retention.

You are likely to get fewer applicants willing to apply to your recruitment campaign as they know that the advertised salary means progressively less pay over time.

Existing employees become disgruntled as they will see their take home pay reduced an especially in a tight recruitment market with 4% unemployment may look for greener pastures elsewhere.

So the question we ask is as a business, what are you really gaining by advertising salaries as inclusive of superannuation?