Market Allowances
There are times when a market allowance is needed to respond to legitimate competitive pressures in order to attract or retain key talent in the University.
The Market Allowance Guidelines set out the basis against which an employee may be remunerated above the level prescribed in the applicable industrial instrument.
Attraction Allowance
- An attraction allowance is useful where uncompetitive remuneration is the primary factor influencing the decision of key talent to accept the offer of employment. These allowances are determined at the point of recruitment.
- 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 suitable employees. This situation is commonly referred to as a ‘market hotspot’.
- An attraction allowance can be negotiated for an agreed reviewable period of no greater than 3 years.
Retention Allowance
- A manager may seek a retention 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.
- A retention allowance is linked to potential loss of an employee due to another offer of employment or a bona fide intent to seek alternative employment. In considering an allowance, the delegate will 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.
- A retention allowance can be negotiated for an agreed reviewable period of no greater than 3 years.
