Annual Leave Loading in Australia

Hi there, we still offer annual leave loading of 17.5% to our employees. We are going to be phasing this out this FY and adding in the annual leave loading amount to base salary instead. Has anyone does this before and does anyone have any tips on how to best communicate this?

I have worked at an organisation where we did this and honestly you will have people who get angry, people who like it and people who don’t care. The best thing to do is communicate clearly, early and often. Run some face to face information sessions so people can ask questions. Be really clear on why you are doing it and that you aren’t substituting it for an annual salary increase. Also, if it’s already a done deal make sure that you hear people out but that you are clear that the decision has already been made unless there is still room for employee input. It’s important to understand why some people might be upset, how the change impacts them in reality and if there is something you can do to support them but that the change is still coming. Always be clear on WIIFM (what’s in it for me)