One of Employment Hero’s core features has always been automated and paperless onboarding; onboarding a new employee with Employment Hero takes minutes instead of hours. From issuing the contract to setting up their salary, it’s almost seamless. Almost. Superannuation has always been a bit of a stick in the mud when it comes to onboarding a new starter (with or without an HRIS!). Managing this regulatory requirement can be both time-consuming and error-prone (AKA non-compliant). It’s time to change all that. Over the last 12 months, we’ve been working with the superannuation industry to create a better super solution for employers and employees alike. From 1 May 2020, superannuation choice in Employment Hero will be streamlined with Seamless Super. Seamless Super will deliver employee information directly to super funds without additional work for you or the employee. Here’s everything you need to know about our new Seamless Super feature.
What is Seamless Super?
Superannuation administration is an ongoing pain point for both employers and employees with antiquated workflows that lead to additional admin for employers and poor outcomes for Australian workers. Seamless Super is the solution. With Employment Hero, employee information is delivered directly to certain super funds without any additional work for either the employee or the employer. Seamless Super makes passive defaulting and multiple account creation a thing of the past.
Why is this important?
The Banking Royal Commission shone a spotlight on the super funds industry. Commissioner Hayne’s recommendations included greater transparency for employees, reduction in the creation of multiple member accounts and a focus on reducing the costs of administering superannuation. Under the current system, employees default into a new fund each time they start a new job, resulting in nearly $20 billion in lost super and the proliferation of low balance and inactive funds, costing Australian workers millions in retirement benefits. Specifically, Commissioner Hayne called upon the industry to develop better mechanisms for stapling an employee’s fund as they move jobs.
Where does Employment Hero step in?
Together with the Hero Passport, which allows employees to continue accessing their stored Employment Hero data when they move employers, Seamless Super will deliver the transparency and accountability that Commissioner Hayne called for. Our comprehensive approach includes:
- Clearly displaying the details of funds to employees at the point of onboarding to proactively engage them in their super choice.
- Using digital data in a transparent and accountable manner that can be updated in real-time as products and regulations are updated.
- Delivering complete and accurate data directly to a fund without any additional form-filling by employees. This will completely eliminate the need for employers to remember to enter details into a fund’s portal, saving hours of administration and protection against human errors.
- Immediately commence member engagement from the fund, rather than waiting for quarterly super fund payments to trigger a request for more details months after an employee commences work.
How are we doing this?
In order to make Seamless Super a reality, we have been collaborating with multiple funds to empower employees to make the best choice for them … and we look forward to adding even more funds in the future. Seamless Super has been launched initially in partnership with Q Super and Spaceship Super. We are working with additional funds and aim to embed Seamless Super across the industry. These funds are committed to making all aspects of superannuation easier for every Australian employee and employer.