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Change your work arrangements

Advantages

  • employees can take better control of their work-life integration
  • continuity of regular salary and income stream
  • greater certainty and a better ability to plan
  • good options for career breaks
  • knowledge retention
  • focus on outcomes
  • encourage diversity
  • support gradual transition into retirement
  • cross-training opportunities.

Things to consider

  • financial advice particularly regarding superannuation
  • managing expectations if a number of employees seek access to flexible arrangements at the same time
  • challenges in backfilling for shorter periods
  • succession planning
  • work availability
  • clear direction regarding deliverables
  • knowledge management
  • forecasting workforce supply and demand.

Leave at half pay

Subject to approval, long service and recreation leave can be taken at half pay to assist in balancing work and life commitments. It is often used as a way of covering school holidays, or to offer greater flexibility for career breaks, carer responsibilities, travel or study goals.

Special leave without pay

Subject to approval, leave without pay can be used throughout a career for both short and long-term absences or career breaks while providing the security to return to a position at the same level. It is most often used to supplement other leave, such as maternity leave, recreation or long service leave.

Examples:

  • purchased leave—extra leave funded by fortnightly deductions from the net salary that occur over a nominated period of time. For example in a 46/52 arrangement, a person works 46 weeks a year and takes 4 weeks of normal annual leave, and 2 weeks of purchased leave. Pay is averaged over the full year so the person receive more leave than usual, but a lower annual pay.
  • extended leave arrangements—can be used to take longer periods of leave. For example, 6 months of leave to study.
  • deferred salary schemes—another variation of purchased leave. For example, a person works for 4 years at 80% of their salary and on completion of the fourth year, are entitled to 12 months of leave with fortnightly payments.

Mobility

Mobility allows a more efficient allocation of resources and is a proven driver for increasing innovation. Mobility involves the movement of employees to new jobs, switching industries, transferring to other sectors or between agencies. Mobility also provides employees with the ability to hone skills, gain new skills and take promotions through transfers, secondments, workforce performance arrangements and interchanges.

Phased retirement

Phased retirement is a flexible work arrangement in which employees ease out of employment by reducing the number of hours worked, or by changing their responsibilities or employment arrangements. Phased retirement provides an incentive for employees to delay retirement and continue to contribute to the workforce. Phased retirement can be either a short or long-term arrangement. The key difference between a formal phased retirement situation and the adoption of flexible work arrangements is phased retirement is often for a pre-determined period prior to formal retirement. Sometimes phased retirement also involves a step-down process in which employees plan to gradually reduce the number of hours or days they work.

Transition to retirement

Transition to retirement is a way of managing superannuation contributions once a person has reached a certain age. For more information, contact your superannuation provider or financial advisor.

Voluntary redeployment

As part of phasing into retirement, you may wish to reduce your level of responsibility by voluntarily redeploying to a lower classification level (subject to operational requirements and work availability). Often this includes a period of mentoring from the soon-to-be retiree for the person taking over their role.