While organisations start implementing return-to-office mandates, hybrid or full-time, employee incentives are high on the agenda. An employee engagement report released by Mercer after five years of tracking stated that enhancing employee experience is the number one priority for Australian HR leaders, and companies are getting creative. But the question is how creative do you need to be?
Offering meal allowances is a simple and highly effective way to encourage in-office attendance. While this practice is commonplace overseas and often expected within corporate culture, it has not yet taken off in Australia.
Provender, Australia’s leading vending machine and micro market supplier, has seen significant growth in both their vending machines and micro market (self-serve convenience stores) uptake in larger organisations.
Whilst meal allowances can often be overlooked, it can be a game changer. It shows employees that management cares about their wellbeing and will invest in their workplace satisfaction. Our micro markets also tend to be community hubs, where people gather and interact with each other, adding a social dimension to this initiative, all of which is exempt from FBT.
Largely unknown in Australia is if meals are provided or subsidised on-site, during work hours, the meal allowances would be exempt from Fringe Benefits Tax (FBT). FBT can be a major consideration when considering employee perks, as it’s very costly. The exemption applies because it’s considered a benefit that allows employees to perform their duties more effectively. This is an attractive option for both employees and employers—a win-win, you might say.
The Mercer study stated that employees no longer want to work for a company, they want to work with one, having a more human-centric partnership and there is nothing more human than sharing food. This simple act of providing additional perks like meal benefits from an organisation can be a significant differentiator to its competitors. It shows genuine concern for employee wellbeing.
It’s an interesting time, as we have seen a complete shift to a healthier workplace culture, evident in how we stock our shelves and machines, but we are yet to see many companies implement meal subsidies.
Coffee subsidies are more common, but meal allowances would be an easy addition to an employee experience strategy, and meal benefits are a surefire way to increase office attendance.
As the Australian work culture continues to evolve, it’s become increasingly clear that the business community needs to focus on the employee experience post-pandemic and prioritise what matters to employees for better business results. Simple changes can have great benefits.
Antony Dutton is managing director of Provender.