The Community Business Bureau (CBB) wholly owns The Salary Packaging People (TSPP). Explore the CBB Website to find out additional information on salary packaging and novated leasing and other services.

How Does Salary Packaging Impact Not-For-Profit Businesses?

If you’re an owner or employee of a not-for-profit organisation, you’re not just a community hero, but there is also a world of salary packaging not-for-profit benefits available – just for you. And we mean an entire world of benefits. In this article, we’ll explore how salary packaging impacts not-for-profits, detailing how the service really is incredibly beneficial for both employers and their employees. So, let’s get started – 

More money at the end of a month

Ok, let’s get straight to the one most people are immediately interested in. When you salary package as an employee of a not-for-profit business, you’ll have more take-home pay at the end of the month. Businesses that help their employees use pre-tax income for their expenses, help those employees directly reduce their taxable income and increase their disposable income, which helps them save more and stay on top of their financial responsibilities. 

Recruiting Top Talent

Who doesn’t want to work at a business that helps you have more money at the end of the month? It’s no surprise that offering perks like salary packaging is incredibly attractive to potential employees. When job seekers know they can have more money to spend at the end of the month due to tax savings, they are more likely to choose an organisation that offers such benefits. In today’s competitive job market, having an edge like this can make a substantial difference in attracting top talent.

Rewarding Employees

Salary packaging provides employees with access to a wide range of benefits, including novated leases, which allow employees to purchase their dream vehicles while saving on tax, services, and petrol). There’s also the Meal Entertainment card that lets employees use their pre-tax income for vacations, accommodation, dining out, and more. And that’s just the beginning. By offering salary packaging, not-for-profits really do improve employees’ quality of life and foster loyalty and job satisfaction amongst their staff team. 

Retaining Talent

With all these benefits, who wouldn’t stick around? By offering salary packaging, not-for-profits will seriously improve their employee retention rates. Employees are more likely to stay with an organisation that offers these kinds of added benefits, meaning that a business can maintain a stable, experienced workforce, reducing the costs and disruptions that come with high staff turnover rates.

Direct impact on employers

Participation Rate

As a not-for-profit employer, it’s important to consider your salary packaging participation rate. Not-for-profit organisations should aim for a participation rate  in excess of 80%, many operate around the 60% rate meaning that just over half of their staff are salary packaging. However, increasing this rate can be highly beneficial. The more staff that salary package, the more likely they are to stay with the business. Ideally, your entire staff body should be salary packaging, giving you a better chance to retain your team and build a committed workforce into the future.

“We review our partner’s participation rates on a regular basis to ensure that everything is in line with the expectations of both the business and their employees.” Dan Nicholls, State Relationship Manager, CBB The Salary Packaging People. 

It costs you nothing

One of the great advantages of salary packaging for employers is that offering all of these incredible benefits costs you absolutely nothing. It’s a win-win situation – by providing these perks, you enhance employee satisfaction and loyalty without incurring additional expenses. So you could say that salary packaging is an extremely cost-effective way to improve your workforce’s well-being and productivity.

How Does Salary Packaging Impact Not-For-Profit Employees?

Maximising your salary

If you’re an employee of a not-for-profit business and you’re not salary packaging, you’re missing out on all the amazing benefits we’ve mentioned already. So, find out with your employer if you’re eligible as soon as possible. 

If you already salary package, it’s worth exploring whether you are making the most of it. Many employees aren’t aware of the entire range of benefits available to them. From using pre-tax income for everyday expenses to larger purchases like cars or holidays, there are a ton of ways to maximise your salary packaging perks.

Get salary packaging today

Salary packaging offers a world of benefits for both not-for-profit organisations and their employees. For employers, it enhances their recruitment position, staff retention, and employee satisfaction. For employees, it means significant financial advantages and the chance to improve their quality of life. Whether you run a not-for-profit or work at one, finding out everything you can about Salary Packaging not-for-profit benefits is super important. CBB The Salary Packaging People are here to help. 

We’ve worked with countless not-for-profits, helping to empower and educate them on the world of salary packaging.  “We are deeply committed to supporting our business partners. Our experience has shown us that success comes from true partnership, where employees are as informed, educated and supported as they can be”, says Dan. So get in touch with a member of our team, and let’s help you reap all the Salary packaging not-for-profit benefits – starting today.