In these enlightened ‘Work Choices’ days there are all sorts of new ways of remunerating staff.
The following information was taken from today’s ninemsn:
The St George Bank is offering employees participation in a new ‘scheme’ - Workers in the scheme would be paid 80 percent of their salary for four years, and then the same during their fifth year away.
The bank says: "As things are getting tight in the labour market, people are saying 'I can get a job somewhere else', and managers are going to have to learn to be more flexible and adaptable."
How flexible and adaptable?
Let’s say an employee receives $40,000 per annum.
Under this scheme they would now receive $32,000 (80%)
The Bank would, I assume, invest the 20% they kept. Lets assume they earn 8% interest annually on the $8k they’ve held back. They invest this money in a compounding account so:
The Bank puts away $32,000 + the compound interest (and I’ve only used conservative ‘ballpark’ figures, it’s voodoo math because the interest compounds daily and I’ve only provided a grossed up annual) so at the start of year 5 they have $36,049 to pay wages of $36,000.
The employee has forfeited $8,000 a year for 4 years to gain absolutely zero! In fact, they've given the Bank $50 for the privilege!
This isn’t a compensation scheme - its theft!
Beware of Banks bringing ‘gifts’
NB: Proving that Mr Rotten was right when he wrote: “Blind acceptance is a sign, of stupid fools who stand in line”, I note that 92% of people who have read this article and voted, think the offer’s just too good to pass up!
Do me a favour!
What a great scheme!
$307/fortnight ($8000pa) invested at 7.5% compound interested for 4 years would be $37,180.02 at the START of year 5. Unless the bank paid the amount as a lump sum they would continue to earn interest on the slowing reducing amount over the 5th year adding another $1373.96 to the banks profits!
There you go!
Would you like a face-to-face meeting with Martin via Skype? Click the button below to make an appointment
Subscribe to this Blog - blog.novaemployment.com.au Copy the link above and paste it into your favourite Reader to subscribe to an RSS feed of this blog. To watch a short video explanation of RSS and how it helps you save time reading the web click here
Your Comments There are currently no comments on this article
The new contract for Disability Employment Services (DES) will not bring performance improvement.
Government will scratch it's head, blame the economy, blame people with disability, talk about educating employers and spend money on consultations before coming to the conclusion that people with disability must meet more stringent 'mutual obligations'....
Each year, around about the International Day of People with a Disability (IDPwD) NOVA Employment holds a formal graduation for students that have participated in our pre-employment programs....
Profiting from poverty
Profiting from Poverty
I am genuinely horrified by this disaster: https://www.theguardian.com/commentisfree/2018/jul/02/the-demerit-system-is-ruthless-social-policy-designed-to-keep-the-poor-powerless
I believe that we presently represent the job hopes of around 1500 people, in various stages of their progression to independent employment....
New Contract but no change!
New Contract but no change!
Today marks the first day of a new Disability Employment Service (DES) contract.
There are new players and new rules....
'It's nice to be busy' and 'busy is better than idle' and all of my mum's other sayings about work being good for you, and all of them said; we're drowning!
The administrative burden of a new Disability Employment Service contract (starts July 1st) and the mountains of paperwork required for an NDIS dollar (approximately 10X that of the former TTW program) has seen us add 3 extra staff to the admin team and we are still receiving a large volume of enquiries that are causing us some time delay in getting back to folk....
Podcasts I've been learning all about Podcasts (I suspect that this may be a long road!)
However, getting paid to be inspired is not the worst way to spend a Monday afternoon and that is just how my day has gone....
I am truly fortunate to work with the very best people in this great nation and we are truly lucky to be part of the best short film festival this side of anywhere!
"Focusonability" voting starts today and there is an even larger number of films (287) than last year....
On the money Sometime over the next week a new Disability Employment Service contract will be announced.
We are moving into a new world of greater consumer choice and greater mobility of job seekers....
Making a tough job tougher!
Making a tough job tougher
It isnt easy to get a decent job and its harder to do so if you have a disability.
NOVA employs around 190 people, an effective and experienced team who are able to draw upon a staff of highly skilled trainers and a support program honed over almost 30 years and tens of thousands of participants....
Your Work There was never any doubt in my mind that I would work. My dad told me I would work and there wasn't ever a suggestion that my future held an alternative option....
Not so bad! Taken from: Today's Guardian at 4.09pm Tuesday 7th November 2017:
In a world full of discouragement there’s always a space for good news....
The NDIS mantra is 'choice and control'
To be valuable, choice needs to be informed.
Average Sydney Disability Employment Services placement rates are 34....
It's voting time at "Focusonability" - with a record number of films entered, a tremendous effort by more than 100 High Schools and 19 countries competing in the International section it was always going to be a hard job to pick a winner....
Choice & Control
The NDIS slogans around choice and control demonstrate the importance of consumer involvement in both the choice and control of supports they need.
However, in order to be valuable, choice needs to be informed by accurate data such is this: http://www....
Last week (14-16) it was my privilege to attend the 1st World Supported Employment Conference in Belfast, Northern Ireland.
"Employment for All - A Global Perspective" brought workers from around the globe (primarily Europe) to discuss best practice in supported employment....
Quality and the Stars Quality and the Stars
There have probably been few people more openly critical of the Disability Employment Service (DES) Star Ratings than me.
The Stars, ranging from 1 to 5 are supposed to give some insight into whether a service is a poor or high performing program....
Attended the Disability Employment Australia (DEA) forum in Canberra. THis is a regular get together that offers disability employment services tha chance to be kept up to date from our funding body and also listed to expert speakers on topics associated with the goal of seeing as many people as possible find and keep suitable employment....
NOVAs greatest asset is its staff. I suspect you would struggle to find the CEO of any organisation state their staff are not vital and at the core of business reputation and results....
A corner turned?
We are presently holding events to promote employment for people with disability - nor surprise there, that's our job.
What has been a surprise is the willingness of employers to come along and listen and more importantly, to consider adopting inclusive employment practices across their organisations....
Say No to Quotas!
The pernicious idea that 'quota's' might be the solution for disability employment continue: