Ray Jaramis works as our Partnership Manager at Employment Hero, working closely with our superannuation partners. With a decade-long award-winning track record in financial services, he’s also armed with a degree in Applied Social Science. Ray is devoted to leveraging these insights to create digital tools that empower our users to take control of their financial lives. In this super series, he’ll be sharing all about this changing industry and what’s in store for Aussies. Today, he’s talking all things payslips.
Before we start: Let’s take a look at super and employment
Payslips are one of the highest areas of engagement we see on the Employment Hero platform.
Did you know that recent research indicates that over 75% of members would value the ability to see super balance, returns and basic account information within their employer’s existing software?
At Employment Hero, we believe in a future where payslips are transformed to not only provide basic pay information, but to become a driver for member engagement, providing valuable information to members at the right time, on platforms they use every day.
Superannuation engagement doesn’t have to be complicated. In fact, there are innovative ways to engage super members in their daily routines, making it easier for them to stay informed and take action.
Payslips and super contributions
Did you know that the super contributions on your payslip might not be in your super account yet? Employers are required to pay your super at least quarterly, but your payslip shows the super you’ve earned each pay period, not necessarily what’s been paid. This means there could be a delay between what’s on your payslip and what’s actually in your super account.
The conventional payslip as it stands today
For those looking to dive deeper into how super can be better integrated into everyday financial management, our Embedded Super Whitepaper provides comprehensive insights.
All that is about to change! (…potentially)
The government has proposed a new initiative: Employers must deposit superannuation into employees’ accounts each pay period. So, if you’re paid monthly, your super is paid monthly; if fortnightly, your super is paid fortnightly.
Consider an employee paid fortnightly. Currently, super is deposited quarterly, totaling 4 times a year. Under the new proposal, contributions will skyrocket to 26 times a year — a remarkable 550% increase in frequency. This ensures that your super keeps pace with your earnings, strengthening your financial future.
An employee paid fortnightly could experience a 550% increase in super contribution frequency
We think this is a pretty incredible opportunity to take a look at your payslip and challenge ourselves with a golden question… “If super is being paid more often, and payslips already provide helpful information about super, how might we make payslips work harder to give employees even more value and information about their super arrangements?
Why do payslips get high engagement?
We all care about getting paid for the work we do. That’s why payslips have one of the highest areas of engagement we see on our platform. With pressed wage growth and rising costs of living, it’s no wonder that ensuring we are across our pay is a huge focus. Every month, like clockwork, an essential notification comes through our mobile apps or inbox. The subject? Our payslip. It might seem like a mundane routine, a simple drop in the financial bucket, but there’s a curious eagerness that accompanies opening that message.
Let’s uncover why our payslips garner such fascination and hold a critical position in our financial mindfulness.
Clarity and confirmation
First off, our payslip is a clear, concise record of our hard work transformed into monetary value. It provides confirmation, ensuring that our employer’s calculations align with our expectations. It’s not just about avoiding discrepancies; it’s also a moment where we tangibly see the fruits of our labour.
Let’s talk tax
Tax deductions can often feel like a financial maze. However, our payslip decodes this complexity, offering a detailed and simplified view of our contributions towards social security, healthcare, and other governmental provisions. This breakdown can be an educational tool, helping us navigate the labyrinth of tax obligations with more confidence and understanding.
Superannuation matters
We know super isn’t the sort of thing most people are highly engaged with. However, our payslips offer an invaluable reminder that every time we get paid, our employer is also putting some of our hard-earned income into our retirement savings.
Think of it like this… Payslips are like a bank statement that everyone can’t wait to get. They’re great at giving us a snapshot of what’s happened in the past.
But what about the future?
What if we made pay slips work hard for us by giving useful and important information about what our payslip means? What if there was a way to see if we can be getting value from the money we earn?
Making payslips work harder: Superannuation insights
As it stands, our payslips tell us how much our employer has to pay into our super fund over a set period (i.e. our pay cycle). Whether this is through mandated contributions or additional contributions we’ve nominated (i.e. salary sacrifice), it’s a helpful little nudge to remind us that we contribute every pay into our retirement. But what if we could get more from our payslips?
We believe there’s an opportunity to embed additional superannuation alongside the super details we currently see. Imagine if you could see how much you had in your super balance, what your investment returns are, what option you’re in and if there’s anything you need to do to get more out of your arrangements?
It’s a thought experiment we ran and I believe there’s an opportunity for members to become more familiar with their super through integrations that provide this information.
It’s time to rethink payslips: A driver for member engagement
What do you get when high engagement (payslips) meets contextual value (embedded super)? Delighted members who are better informed, have more understanding and are more satisfied with their superannuation.
The future of digital employment management was a key topic at the 10th annual Australian Fintech Summit, where industry leaders discussed how digital solutions are revolutionising employee engagement, including superannuation workflows.
Digital employment, payroll, and compliance solutions have revolutionised how businesses operate, streamlining employee onboarding and engagement workflows. As the economy transitions to fully digital employment management, incorporating superannuation workflows effectively is crucial.
Superannuation engagement is naturally aligned to the employment lifecycle. Recent research indicates that over 72% of members would value the ability to see super balance, returns and basic account information within their employer’s existing software.
We see a future where payslips are used by superannuation funds to inform members of important account information, prompting members to complete outstanding actions to improve the engagement gap in super.
What superannuation information might be provided in a payslip?
As a digital employment platform, this is where we have more questions than answers.
Question: “Super provider, what are the most valuable details your members need to see?”
We’ve taken an initial view suggesting the usual suspects of brand awareness, key account information, account balance & embedded call to action’s. It’s not really for us to decide, though.
As a super fund provider you’ll have a clear idea of what information members want to see, and the areas where members are less informed or less engaged then what they should be. That’s where we want the payslip to come in.
Embracing digital technologies to create member engagement that delight members is the next challenge for superannuation funds. Members now benchmark their super engagement experiences against related industries like banking and embedded finance, lifting expectations.
At Employment Hero, we focus on this through embedded super, starting with something as fundamental as payslips. However, a multitude of opportunities abound, enabling funds to improve member engagement on platforms used daily.
Where to from here?
If you work at a superannuation fund (or know anyone who does) please get in touch. We’d love to speak to funds who are keen to take on the member engagement gap.
Imagine the transformative potential: a payslip embedded with super information and payday super, turning the ordinary into something extraordinarily delightful for members.
* Survey with n=2,185 Australians aged 18 to 65 between the 18-25th October 2023. Employment Hero
About Employment Hero
Employment Hero manages the employment of more than 1 million employees, roughly 15% of Australia’s private sector workforce and is forecast to continue growing exponentially.
Our mission is to make employment easier and more valuable, for everyone.
Employment Hero offers a suite of digital super services to help employees engage with and manage their super selection, all while making employment simpler and more automated for business owners.
If you’d like to learn more about Employment Hero embedded super, reach out to Ray and the partnerships team at embeddedsuper@employmenthero.com.
Alternatively, you can learn more about embedded super here or download our whitepaper.
