Hostplus' Bill of Attainder Against innovation
Yesterday I learnt about a thing called a Bill of Attainder. It's when laws are passed declaring a person or group guilty of a crime and punishing them without a trial. This is exactly what David Elia and @Hostplus are trying to do to @EmploymentHero.
Hostplus have asked the government to pass laws which would permanently ban us from helping Australian employees consider alternative super funds while they are being onboarded into a new job - which is exactly when they're legally required to choose a fund.
Our research (across 2000 employees) shows that 4 in 5 Australians would switch to a better performing superannuation fund if given the choice. The best time for this to happen is right when employees are required to exercise a choice. It doesn't mean they can't remain with their existing fund (i.e. Super Stapling) or choose their employer's default fund. It just means they can consider other options.
Hostplus don't want this to happen because they're afraid their members might choose another fund. They benefit from inertia and apathy so they want to maximise it. Our research also shows that 70% of Australians have challenges with their super fund. There are notoriously low engagement rates with superannuation. 1 in 5 people engage with their super monthly and 1 in 10 never engage with their super at all.
Employment Hero enables employees to engage with their super in real time, to track its progress and understand the fees they're paying. The reason Hostplus wants a Bill of Attainder against Employment Hero is because they will benefit from less choice and less competition.
What Hostplus is doing is bad for its members, its bad for business and its anticompetitive. It must be stopped.
To be absolutely clear, Employment Hero doesn't own a superannuation fund or have any interest in a superannuation fund. We don't want to. We exist to make employment easier and more valuable for everyone. I will continue fighting to deliver exactly this, especially when I see anticompetitive behaviour. Its about time someone in the media asked David Elia why he wants a Bill of Attainder passed against Employment Hero, innovation and his member's interests.
Learning and Organisational Development | Employee Experience | Employment Hero | Culture Amp | Tribal Habits
1ySurely, working together with WMP's is fairer (and smarter). Great call out Ben Thompson
Growth Director at Smart Loyalty - CLMP
1yStand strong and fight the good fight Ben and EH team!!
Martech | MOPs | Software | Dad
1ySuperannuation is the last place I want monopolies to exist. My elderly future self thanks you for the fight Ben.
CA
1yWe should definitely call out behaviour that makes the employment process for employees and employers more difficult. A simplification of managing the stapled super fund checking and ensuring choice remains with the employee at all times is the fundamentals of why the choice in super was implemented. Having used Employment Hero, I can attest to the benefits the software offers to enhance the employment process. There are some valid points in terms of conflicts that were called out in the submission and are valid which should be addressed to ensure that choice remains with the employee. The software provider should not have any undisclosed interest in a product that its recommending or pushing. Additionally, the software should not recommend a product or selection of products that an undisclosed commercial benefit is flowing, ie only showing a product that there is a remuneration flowing to the provider. As has been seen before, if conflicted remunerations are not appropriately regulated, unscrupulous operators will take advantage. This has been seen historically in industries such as financial planning historically. The best interests of the employee should be at the foundation of such measures to maximise super balances.
Scaling Tech Unicorns | Global Head of Brand Marketing & Creative @ Employment Hero 🦄 | Brand | Marketing | Strategy | Creative | Content | Social
1yNot all heroes wear capes... Love this. Taking a stand against bullies (who their put their own interests over the greater good) is awesome. It reflects an outdated mindset that limits customer choice and freedom. This behaviour is old-school, short-sighted and pretty disappointing.