Posted November 07, 2018 15:33:00 The biggest insurance companies have started to pay their staff overtime and are taking a much bigger risk by providing them with benefits.
One of the biggest insurers in the country, AXA Australia, is set to introduce a new technology that would allow its staff to get paid for doing a few hours of overtime each week.
The new system, called Flexible Hourly Payments, is designed to cut down on the costs and risks associated with managing employees’ hours, and has been described by AXA chief executive David Smith as a “game-changer”.
Mr Smith said the new technology would allow employees to take more time off when they are needed, to better manage their time and reduce the risk of sick leave.
The company says it would be able to reduce costs by about 50 per cent and cut staff turnover by about 30 per cent.
The Australian Financial Journal is not naming the companies because the details of the plans are confidential.
The move to pay employees overtime is the latest in a series of big companies, including Australia’s biggest insurer, to start paying employees overtime.
A group of the big insurers, including Commonwealth Bank, are also considering introducing flexible hours.
However, the new payments could be the biggest payouts for employees since the implementation of the Personal Injury Compensation Scheme (PICPS) in 2007.
Mr Smith also said the payments could also help the insurers meet their obligation to make the payments.
AXA has already paid about $2.6 billion in overtime since 2007.
The payments are not expected to change for the rest of this financial year.
“I’m hopeful that we can do a better job of meeting the needs of the insurers that we’re working with and providing them more flexibility,” he said.
He said the payouts would not affect the financial viability of the companies, because it was their employees who were paying the bills.
The payouts will be made to all staff who worked overtime during the month of November.
The amount will be determined on a weekly basis and it will be distributed to employees on a quarterly basis, he said, but not for every employee.