A city council in the UK has revealed that they've made savings of up to $230,000 by implementing a salary sacrifice scheme which allows employees to buy extra annual leave.
The ‘Holidayplus’ plan at Nottingham City Council gives employees an option to sacrifice part of their monthly salary in order to increase their holiday entitlement, and they also have the option to spread the extra holiday cost over 12 months.
Staff can choose to purchase additional annual leave whilst making savings of up to 41% on tax and national insurance. This also benefits the council with savings on its national insurance employer contributions, which has resulted in a reduction of the overall annual salary bill.
Angela Probert, Nottingham City Council’s director of HR and transformation commented: “With the UK public sector facing substantial financial cuts, we need to try to reduce costs where possible, creating as little detrimental impact on our employees and customers as possible.”
“Holidayplus is the perfect example of an innovative solution which not only supports our efforts to reduce outgoings, but importantly, offers a positive benefit to our colleagues,” she continued.
“It has been well received by colleagues and we hope to make more savings in this way in the future.”
For more information see: http://www.egovmonitor.com/node/43333
So how might an automated Time and Attendance system help you introduce a similar program at your organisation?
Implementing an automated Time and Attendance System with Self Service funtionality is a good first step to introducing a salary sacrificing scheme.
An automated Time and Attendance System can easily manage the increase in the number of leave entitlements and would enable you to avoid any inaccurate payments made as a consequence of errors associated with manually tracking leave.
With Employee Self-Service functionality, a Time and Attendance system allows employees to request personal leave without having to speak to their manager directly, employees can also view their accrued leave, entitlements, and request updates to their personal records without having to bother the HR department, saving time spent on administrative duties.
In addition, during busy periods i.e. the run up to Christmas, a supervisor can set up Leave Slots. This option restricts the number of people that can take Annual Leave on the same day. For example, if an employee tries to book leave on a day when 3 other people have already requested leave, they would get a rejection message and would have to change or abandon their request.
In the event that department managers are on leave, they can ‘escalate’ their responsibilities regarding approving/declining holiday requests to other supervisors so that any holiday-related issues could be sorted without any delays.
If you would like more information on Time and Attendance and Employee Self Service functionality contact us on +61 2 8762 7888 or visit Mitrefinch online today.
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