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A recent report has highlighted that HR leaders heading into 2025 list enhancing employee experience as a top priority, with creative incentives like meal allowances potentially playing a big role.
A Mercer report has revealed that enhancing employee experience is a top priority for HR leaders. With the implementation of return-to-office mandates (RTOs) continuing to grow throughout Australian organisations, a large number of employees are shown to be disgruntled with the decision.
It drives the importance of ensuring that if businesses plan to bring their workers back to the office, employee experience must be considered a priority so that productivity and business outcomes don’t take a dive. With that in mind, creative incentives such as meal allowances could play a pivotal role in improving the relationship between workers and the office.
According to Provender managing director Antony Dutton, offering meal allowance is a simple yet highly effective incentive that can encourage in-office attendance. While this practice is often very common overseas, and almost expected from employers, it is yet to be taken seriously in the Land Down Under.
“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,” Dutton said.
Largely unknown in Australia is if meals are provided or subsidised onsite, during work hours, the meal allowances would be exempt from fringe benefits tax (FBT). According to Provender, 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.
The Mercer study stated that employees no longer want to work for a company; they want to work with one, thus prioritising a more human-centric partnership.
“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,” Dutton said.
“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.”
This simple act of providing additional perks like meal benefits from an organisation can be a significant differentiator to a business’s competitors in today’s labour market. It also aligns with wellbeing policies that employees believe are incredibly important.
Overall, as the Australian work culture continues to adapt, it’s become much more evident that the business community needs to focus on the employee experience post-pandemic and prioritise what matters to employees for improved business outcomes, especially when introducing practices such as RTO mandates.
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Employee engagement is the level of commitment people have to the company, how enthusiastic they are about their work, and how much free time they devote to it.
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
