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Market allowances
Market allowances provide managers with the basis against which an
employee may be remunerated above the level prescribed in the applicable
industrial instrument. This enables the University to respond to, and
compete within, the competitive marketplace for key staff.
The University recognises that the attraction and retention of talent
is becoming increasingly competitive and that managers require the
flexibility to respond to legitimate competitive pressures through
remuneration management.
Attraction allowance
- Refers to the use of an additional allowance to attract key
talent. Attraction allowances are useful where uncompetitive
remuneration is the primary factor influencing the decision to
accept the offer of employment.
- The allowance could also be used to attract key employees where
a demonstrable competitive market premium for particular skills
results directly in an inability to attract employees. This
situation is commonly referred to as a ‘market hotspot’.
- It is recommended that the allowance be for an agreed reviewable
period of no greater than 3 years.
Retention allowance
- Refers to the use of an additional allowance to retain key
employees where the loss of that employee would impact negatively on
the achievement of the business unit and University strategic aims
and objectives, where uncompetitive remuneration is the primary
motivation for leaving.
- A retention allowance could also be used to retain key employees
in market hotspots, as discussed above.
- It is important to explore the influences on the intent to break
employment from the University, assess if retention is viable, and
if the payment of an additional allowance is the most appropriate
retention mechanism.
- It is recommended that the allowance should be agreed for a
reviewable period of no greater than 3 years.
Market Allowance
Guidelines
(pdf 50kb download
Adobe Acrobat)
Template for
Business Case (word 43kb)
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