A staff survey of 583 Lake Macquarie City Council staff revealed that income protection insurance would be a highly valued employee benefit. However, investigations found the cost to Council for providing this insurance to employees would be high.
Committed to expanding non-financial benefits for its employees, Council had good reason to take an innovative approach to finding a cost-effective alternative to providing income protection insurance.
Organisational Performance Manager, Laura Kendall, said the Council recently introduced the Personal Leave Sharing Scheme, an employee-funded benefit that assists members who are at risk of serious financial hardship due to illness or caring responsibilities.
“The scheme is an employee -owned and -managed initiative, developed by employees for employees.
“Permanent staff who choose to become a member of the scheme donate two hours of their personal leave each year, which are pooled together to help other members when they need to take extended leave due to ill health or care of a sick family member.”
Ms Kendall said the organisation was committed to following through on the results of the survey, including finding a way to expand its employee benefits in some shape or form.
“Council is the custodian of $2.4 billion worth of community facilities and infrastructure, but our biggest asset is our people. When our people are happy, healthy and motivated, their sense of wellbeing and energy are focussed into providing the best customer service and facilities for the people of our City.
“The Personal Leave Sharing Scheme is a cost-effective solution that complements a range of existing employee benefits, allowing us to attract and retain skilled and talented staff.
“Council will contribute a small amount of leave, equivalent to the contribution of one employee, into the pool each year, and will also cover the cost of staff time spent administering it.
Ms Kendall said for more than 15 years, Council has implemented a similar employee-funded benefit called the Bereavement Scheme.
“Our new Personal Leave Sharing Scheme operates similarly, but the donation is a small amount of accrued leave.
“These types of schemes are of great benefit to our staff and impose minimal costs for Council to implement. It provides employees with an alternative to income protection insurance and, potentially, continued income in a time of need.”
