Finding optimal employee benefit package through trade-offs


Posted on 24 July 2017


UMDF (the name and findings are disguised) is a major accounting and consulting firm operating across 70+ countries. In Australia, every year the firm hires roughly a hundred university graduates for entry-level accountancy positions across its three offices in Melbourne, Canberra, and Sydney. The firm is keen on employing and developing newly minted graduates who can quickly start adding value to the company and who provide leverage to the more experienced and therefore costlier employees.

The firm is not alone in hiring university accounting graduates, competing with a host of local and international accounting firms, with every firm aiming to get over two thousand job applications and vying for the best talent. Recently, competitors started emphasising their various employee perks in university recruitment events, which has prompted the HR team to review the firm’s benefits for entry-level staff.

While the composition of the benefits can be adjusted, the firm is not prepared to substantially increase the total value of the package. Therefore, it is important to understand what drives applicants’ choice in applying for graduate roles. In order to do that, UMDF’s HR team decided to conduct a conjoint study looking at the following attributes of the pay packages:

  • Base salary, testing the following levels: $63K p.a. $66K p.a., or $69K p.a.
  • Superannuation contribution rate: 9.5% (minimum contribution as per legislated superannuation guarantee) vs. 10%
  • Annual leave: 20 days vs. 25 days
  • Health insurance fund: Bupa, Medibank Private, or none
  • Parental leave: 10 days, 1 month, 2 months
  • Life insurance amount: none, $200K, or $400K

Bereavement and sick leave entitlements as well as the bonus structure were decided to be kept the same. The firm fielded the survey to 200 accounting graduates without using its name and data collection took 5 days.

Preferences for features of the salary package

The results of the conjoint study came to show that graduates care about health insurance most, followed by life insurance and salary. Parental leave, annual leave, and superannuation contribution were less important factors in their decision-making. Preferences for superannuation options came out in an unexpected order: 10% was rated lower than 9.5%. However, this difference is so small that it can be ignored.

Constructing optimal remuneration package

Normally, choosing an optimal package would involve market simulation involving competitive options. However, UMDF looked only at itself in this study. Therefore the optimal option was chosen to be the one that is the highest rated within the company’s budget constraint of $87K p.a. (excluding certain overheads, bereavement leave, sick leaves and bonus).

To find such an option, UMDF looked at the “ranked list of concepts as preferred by respondents” (a standard output of Conjoint.ly) and assess the cost of each of the options, considering the following components:

  • Base salary (as given in the levels: $63K, $66K, $69K).
  • Payroll tax: 9% of salary.
  • Superannuation: 9.5% or 10% of the salary.
  • Annual leave: Number of days / 250 working days × base salary.
  • Parental leave: Number of days / 250 working days × base salary × 10% probability of taking the leave.
  • Health insurance: $2,985 p.a. for Bupa or $3,450 for Medibank.
  • Life insurance: $2K for the $400K option or $950 for the $200K option.

The resultant table containing the full list of concepts is shown below.

Base salarySuperannuation contribution rateAnnual leaveHealth insurance fundParental leaveLife insurance amountScoreRankSalary (calculated)Payroll tax (9%, calculated)Superannuation (calculated)Annual leave (calculated)Parental leave (calculated)Health insurance (calculated)Life insurance (calculated)Total cost (calculated)
$69K p.a.9.5%25 daysBupa1 month$400K391$69,000$6,210$6,555$6,900$828$2,985$2,000$94,478
$69K p.a.9.5%25 daysBupa2 months$400K392$69,000$6,210$6,555$6,900$1,656$2,985$2,000$95,306
$69K p.a.9.5%25 daysMedibank Private1 month$400K383$69,000$6,210$6,555$6,900$828$3,540$2,000$95,033
$69K p.a.9.5%25 daysMedibank Private2 months$400K384$69,000$6,210$6,555$6,900$1,656$3,540$2,000$95,861
$69K p.a.10%25 daysBupa1 month$400K385$69,000$6,210$6,900$6,900$828$2,985$2,000$94,823
$69K p.a.10%25 daysBupa2 months$400K376$69,000$6,210$6,900$6,900$1,656$2,985$2,000$95,651
$69K p.a.10%25 daysMedibank Private1 month$400K367$69,000$6,210$6,900$6,900$828$3,540$2,000$95,378
$69K p.a.9.5%25 daysBupa1 month$200K368$69,000$6,210$6,555$6,900$828$2,985$950$93,428
$69K p.a.9.5%20 daysBupa1 month$400K369$69,000$6,210$6,555$5,520$828$2,985$2,000$93,098
$69K p.a.10%25 daysMedibank Private2 months$400K3610$69,000$6,210$6,900$6,900$1,656$3,540$2,000$96,206
$69K p.a.9.5%25 daysBupa2 months$200K3611$69,000$6,210$6,555$6,900$1,656$2,985$950$94,256
$69K p.a.9.5%20 daysBupa2 months$400K3612$69,000$6,210$6,555$5,520$1,656$2,985$2,000$93,926
$69K p.a.9.5%25 daysMedibank Private1 month$200K3513$69,000$6,210$6,555$6,900$828$3,540$950$93,983
$69K p.a.9.5%20 daysMedibank Private1 month$400K3514$69,000$6,210$6,555$5,520$828$3,540$2,000$93,653
$69K p.a.9.5%25 daysMedibank Private2 months$200K3415$69,000$6,210$6,555$6,900$1,656$3,540$950$94,811
$69K p.a.9.5%20 daysMedibank Private2 months$400K3416$69,000$6,210$6,555$5,520$1,656$3,540$2,000$94,481
$69K p.a.10%25 daysBupa1 month$200K3417$69,000$6,210$6,900$6,900$828$2,985$950$93,773
$69K p.a.10%20 daysBupa1 month$400K3418$69,000$6,210$6,900$5,520$828$2,985$2,000$93,443
$69K p.a.10%25 daysBupa2 months$200K3419$69,000$6,210$6,900$6,900$1,656$2,985$950$94,601
$69K p.a.10%20 daysBupa2 months$400K3420$69,000$6,210$6,900$5,520$1,656$2,985$2,000$94,271
$69K p.a.10%25 daysMedibank Private1 month$200K3321$69,000$6,210$6,900$6,900$828$3,540$950$94,328
$69K p.a.10%20 daysMedibank Private1 month$400K3322$69,000$6,210$6,900$5,520$828$3,540$2,000$93,998
$69K p.a.9.5%20 daysBupa1 month$200K3323$69,000$6,210$6,555$5,520$828$2,985$950$92,048
$69K p.a.10%25 daysMedibank Private2 months$200K3224$69,000$6,210$6,900$6,900$1,656$3,540$950$95,156
$69K p.a.10%20 daysMedibank Private2 months$400K3225$69,000$6,210$6,900$5,520$1,656$3,540$2,000$94,826
$69K p.a.9.5%20 daysBupa2 months$200K3226$69,000$6,210$6,555$5,520$1,656$2,985$950$92,876
$69K p.a.9.5%20 daysMedibank Private1 month$200K3127$69,000$6,210$6,555$5,520$828$3,540$950$92,603
$69K p.a.9.5%20 daysMedibank Private2 months$200K3128$69,000$6,210$6,555$5,520$1,656$3,540$950$93,431
$69K p.a.10%20 daysBupa1 month$200K3129$69,000$6,210$6,900$5,520$828$2,985$950$92,393
$69K p.a.10%20 daysBupa2 months$200K3030$69,000$6,210$6,900$5,520$1,656$2,985$950$93,221
$69K p.a.9.5%25 daysBupa10 days$400K3031$69,000$6,210$6,555$6,900$276$2,985$2,000$93,926
$69K p.a.10%20 daysMedibank Private1 month$200K2932$69,000$6,210$6,900$5,520$828$3,540$950$92,948
$66K p.a.9.5%25 daysBupa1 month$400K2933$66,000$5,940$6,270$6,600$792$2,985$2,000$90,587
$69K p.a.10%20 daysMedibank Private2 months$200K2934$69,000$6,210$6,900$5,520$1,656$3,540$950$93,776
$69K p.a.9.5%25 daysMedibank Private10 days$400K2935$69,000$6,210$6,555$6,900$276$3,540$2,000$94,481
$66K p.a.9.5%25 daysBupa2 months$400K2936$66,000$5,940$6,270$6,600$1,584$2,985$2,000$91,379
$69K p.a.10%25 daysBupa10 days$400K2837$69,000$6,210$6,900$6,900$276$2,985$2,000$94,271
$66K p.a.9.5%25 daysMedibank Private1 month$400K2838$66,000$5,940$6,270$6,600$792$3,540$2,000$91,142
$66K p.a.9.5%25 daysMedibank Private2 months$400K2739$66,000$5,940$6,270$6,600$1,584$3,540$2,000$91,934
$66K p.a.10%25 daysBupa1 month$400K2740$66,000$5,940$6,600$6,600$792$2,985$2,000$90,917
$69K p.a.10%25 daysMedibank Private10 days$400K2741$69,000$6,210$6,900$6,900$276$3,540$2,000$94,826
$69K p.a.9.5%25 daysBupa10 days$200K2742$69,000$6,210$6,555$6,900$276$2,985$950$92,876
$69K p.a.9.5%20 daysBupa10 days$400K2743$69,000$6,210$6,555$5,520$276$2,985$2,000$92,546
$66K p.a.10%25 daysBupa2 months$400K2744$66,000$5,940$6,600$6,600$1,584$2,985$2,000$91,709
$66K p.a.10%25 daysMedibank Private1 month$400K2645$66,000$5,940$6,600$6,600$792$3,540$2,000$91,472
$66K p.a.9.5%25 daysBupa1 month$200K2646$66,000$5,940$6,270$6,600$792$2,985$950$89,537
$66K p.a.9.5%20 daysBupa1 month$400K2647$66,000$5,940$6,270$5,280$792$2,985$2,000$89,267
$69K p.a.9.5%25 daysMedibank Private10 days$200K2648$69,000$6,210$6,555$6,900$276$3,540$950$93,431
$69K p.a.9.5%20 daysMedibank Private10 days$400K2649$69,000$6,210$6,555$5,520$276$3,540$2,000$93,101
$66K p.a.10%25 daysMedibank Private2 months$400K2550$66,000$5,940$6,600$6,600$1,584$3,540$2,000$92,264
$66K p.a.9.5%25 daysBupa2 months$200K2551$66,000$5,940$6,270$6,600$1,584$2,985$950$90,329
$66K p.a.9.5%20 daysBupa2 months$400K2552$66,000$5,940$6,270$5,280$1,584$2,985$2,000$90,059
$69K p.a.10%25 daysBupa10 days$200K2553$69,000$6,210$6,900$6,900$276$2,985$950$93,221
$69K p.a.10%20 daysBupa10 days$400K2554$69,000$6,210$6,900$5,520$276$2,985$2,000$92,891
$66K p.a.9.5%25 daysMedibank Private1 month$200K2455$66,000$5,940$6,270$6,600$792$3,540$950$90,092
$66K p.a.9.5%20 daysMedibank Private1 month$400K2456$66,000$5,940$6,270$5,280$792$3,540$2,000$89,822
$66K p.a.9.5%25 daysMedibank Private2 months$200K2457$66,000$5,940$6,270$6,600$1,584$3,540$950$90,884
$66K p.a.9.5%20 daysMedibank Private2 months$400K2458$66,000$5,940$6,270$5,280$1,584$3,540$2,000$90,614
$66K p.a.10%25 daysBupa1 month$200K2459$66,000$5,940$6,600$6,600$792$2,985$950$89,867
$66K p.a.10%20 daysBupa1 month$400K2460$66,000$5,940$6,600$5,280$792$2,985$2,000$89,597
$69K p.a.10%25 daysMedibank Private10 days$200K2461$69,000$6,210$6,900$6,900$276$3,540$950$93,776
$69K p.a.10%20 daysMedibank Private10 days$400K2462$69,000$6,210$6,900$5,520$276$3,540$2,000$93,446
$69K p.a.9.5%20 daysBupa10 days$200K2363$69,000$6,210$6,555$5,520$276$2,985$950$91,496
$66K p.a.10%25 daysBupa2 months$200K2364$66,000$5,940$6,600$6,600$1,584$2,985$950$90,659
$66K p.a.10%20 daysBupa2 months$400K2365$66,000$5,940$6,600$5,280$1,584$2,985$2,000$90,389
$66K p.a.10%25 daysMedibank Private1 month$200K2266$66,000$5,940$6,600$6,600$792$3,540$950$90,422
$66K p.a.10%20 daysMedibank Private1 month$400K2267$66,000$5,940$6,600$5,280$792$3,540$2,000$90,152
$66K p.a.9.5%20 daysBupa1 month$200K2268$66,000$5,940$6,270$5,280$792$2,985$950$88,217
$69K p.a.9.5%20 daysMedibank Private10 days$200K2269$69,000$6,210$6,555$5,520$276$3,540$950$92,051
$66K p.a.10%25 daysMedibank Private2 months$200K2270$66,000$5,940$6,600$6,600$1,584$3,540$950$91,214
$66K p.a.10%20 daysMedibank Private2 months$400K2271$66,000$5,940$6,600$5,280$1,584$3,540$2,000$90,944
$66K p.a.9.5%20 daysBupa2 months$200K2272$66,000$5,940$6,270$5,280$1,584$2,985$950$89,009
$69K p.a.10%20 daysBupa10 days$200K2273$69,000$6,210$6,900$5,520$276$2,985$950$91,841
$66K p.a.9.5%20 daysMedibank Private1 month$200K2174$66,000$5,940$6,270$5,280$792$3,540$950$88,772
$66K p.a.9.5%20 daysMedibank Private2 months$200K2075$66,000$5,940$6,270$5,280$1,584$3,540$950$89,564
$66K p.a.10%20 daysBupa1 month$200K2076$66,000$5,940$6,600$5,280$792$2,985$950$88,547
$69K p.a.10%20 daysMedibank Private10 days$200K2077$69,000$6,210$6,900$5,520$276$3,540$950$92,396
$66K p.a.10%20 daysBupa2 months$200K2078$66,000$5,940$6,600$5,280$1,584$2,985$950$89,339
$66K p.a.9.5%25 daysBupa10 days$400K2079$66,000$5,940$6,270$6,600$264$2,985$2,000$90,059
$63K p.a.9.5%25 daysBupa1 month$400K2080$63,000$5,670$5,985$6,300$756$2,985$2,000$86,696
$63K p.a.9.5%25 daysBupa2 months$400K1981$63,000$5,670$5,985$6,300$1,512$2,985$2,000$87,452
$66K p.a.10%20 daysMedibank Private1 month$200K1982$66,000$5,940$6,600$5,280$792$3,540$950$89,102
$66K p.a.10%20 daysMedibank Private2 months$200K1983$66,000$5,940$6,600$5,280$1,584$3,540$950$89,894
$66K p.a.9.5%25 daysMedibank Private10 days$400K1984$66,000$5,940$6,270$6,600$264$3,540$2,000$90,614
$63K p.a.9.5%25 daysMedibank Private1 month$400K1885$63,000$5,670$5,985$6,300$756$3,540$2,000$87,251
$66K p.a.10%25 daysBupa10 days$400K1886$66,000$5,940$6,600$6,600$264$2,985$2,000$90,389
$63K p.a.9.5%25 daysMedibank Private2 months$400K1887$63,000$5,670$5,985$6,300$1,512$3,540$2,000$88,007
$63K p.a.10%25 daysBupa1 month$400K1888$63,000$5,670$6,300$6,300$756$2,985$2,000$87,011
$63K p.a.10%25 daysBupa2 months$400K1789$63,000$5,670$6,300$6,300$1,512$2,985$2,000$87,767
$66K p.a.10%25 daysMedibank Private10 days$400K1790$66,000$5,940$6,600$6,600$264$3,540$2,000$90,944
$66K p.a.9.5%25 daysBupa10 days$200K1691$66,000$5,940$6,270$6,600$264$2,985$950$89,009
$66K p.a.9.5%20 daysBupa10 days$400K1692$66,000$5,940$6,270$5,280$264$2,985$2,000$88,739
$63K p.a.10%25 daysMedibank Private1 month$400K1693$63,000$5,670$6,300$6,300$756$3,540$2,000$87,566
$63K p.a.9.5%25 daysBupa1 month$200K1694$63,000$5,670$5,985$6,300$756$2,985$950$85,646
$63K p.a.9.5%20 daysBupa1 month$400K1695$63,000$5,670$5,985$5,040$756$2,985$2,000$85,436
$63K p.a.10%25 daysMedibank Private2 months$400K1696$63,000$5,670$6,300$6,300$1,512$3,540$2,000$88,322
$63K p.a.9.5%25 daysBupa2 months$200K1697$63,000$5,670$5,985$6,300$1,512$2,985$950$86,402
$63K p.a.9.5%20 daysBupa2 months$400K1698$63,000$5,670$5,985$5,040$1,512$2,985$2,000$86,192
$69K p.a.9.5%25 daysBupa1 monthNot provided1699$69,000$6,210$6,555$6,900$828$2,985$0$92,478
$66K p.a.9.5%25 daysMedibank Private10 days$200K15100$66,000$5,940$6,270$6,600$264$3,540$950$89,564
$69K p.a.9.5%25 daysBupa2 monthsNot provided15101$69,000$6,210$6,555$6,900$1,656$2,985$0$93,306
$66K p.a.9.5%20 daysMedibank Private10 days$400K15102$66,000$5,940$6,270$5,280$264$3,540$2,000$89,294
$63K p.a.9.5%25 daysMedibank Private1 month$200K15103$63,000$5,670$5,985$6,300$756$3,540$950$86,201
$63K p.a.9.5%20 daysMedibank Private1 month$400K15104$63,000$5,670$5,985$5,040$756$3,540$2,000$85,991
$66K p.a.10%25 daysBupa10 days$200K15105$66,000$5,940$6,600$6,600$264$2,985$950$89,339
$66K p.a.10%20 daysBupa10 days$400K15106$66,000$5,940$6,600$5,280$264$2,985$2,000$89,069
$63K p.a.9.5%25 daysMedibank Private2 months$200K14107$63,000$5,670$5,985$6,300$1,512$3,540$950$86,957
$63K p.a.9.5%20 daysMedibank Private2 months$400K14108$63,000$5,670$5,985$5,040$1,512$3,540$2,000$86,747
$69K p.a.9.5%25 daysMedibank Private1 monthNot provided14109$69,000$6,210$6,555$6,900$828$3,540$0$93,033
$63K p.a.10%25 daysBupa1 month$200K14110$63,000$5,670$6,300$6,300$756$2,985$950$85,961
$63K p.a.10%20 daysBupa1 month$400K14111$63,000$5,670$6,300$5,040$756$2,985$2,000$85,751
$69K p.a.9.5%25 daysMedibank Private2 monthsNot provided14112$69,000$6,210$6,555$6,900$1,656$3,540$0$93,861
$63K p.a.10%25 daysBupa2 months$200K14113$63,000$5,670$6,300$6,300$1,512$2,985$950$86,717
$63K p.a.10%20 daysBupa2 months$400K14114$63,000$5,670$6,300$5,040$1,512$2,985$2,000$86,507
$69K p.a.10%25 daysBupa1 monthNot provided14115$69,000$6,210$6,900$6,900$828$2,985$0$92,823
$66K p.a.10%25 daysMedibank Private10 days$200K13116$66,000$5,940$6,600$6,600$264$3,540$950$89,894
$69K p.a.10%25 daysBupa2 monthsNot provided13117$69,000$6,210$6,900$6,900$1,656$2,985$0$93,651
$66K p.a.10%20 daysMedibank Private10 days$400K13118$66,000$5,940$6,600$5,280$264$3,540$2,000$89,624
$66K p.a.9.5%20 daysBupa10 days$200K13119$66,000$5,940$6,270$5,280$264$2,985$950$87,689
$63K p.a.10%25 daysMedibank Private1 month$200K13120$63,000$5,670$6,300$6,300$756$3,540$950$86,516
$63K p.a.10%20 daysMedibank Private1 month$400K13121$63,000$5,670$6,300$5,040$756$3,540$2,000$86,306
$63K p.a.9.5%20 daysBupa1 month$200K13122$63,000$5,670$5,985$5,040$756$2,985$950$84,386
$63K p.a.10%25 daysMedibank Private2 months$200K13123$63,000$5,670$6,300$6,300$1,512$3,540$950$87,272
$63K p.a.10%20 daysMedibank Private2 months$400K13124$63,000$5,670$6,300$5,040$1,512$3,540$2,000$87,062
$69K p.a.10%25 daysMedibank Private1 monthNot provided12125$69,000$6,210$6,900$6,900$828$3,540$0$93,378
$63K p.a.9.5%20 daysBupa2 months$200K12126$63,000$5,670$5,985$5,040$1,512$2,985$950$85,142
$69K p.a.9.5%20 daysBupa1 monthNot provided12127$69,000$6,210$6,555$5,520$828$2,985$0$91,098
$69K p.a.10%25 daysMedibank Private2 monthsNot provided12128$69,000$6,210$6,900$6,900$1,656$3,540$0$94,206
$66K p.a.9.5%20 daysMedibank Private10 days$200K12129$66,000$5,940$6,270$5,280$264$3,540$950$88,244
$69K p.a.9.5%20 daysBupa2 monthsNot provided12130$69,000$6,210$6,555$5,520$1,656$2,985$0$91,926
$63K p.a.9.5%20 daysMedibank Private1 month$200K12131$63,000$5,670$5,985$5,040$756$3,540$950$84,941
$66K p.a.10%20 daysBupa10 days$200K11132$66,000$5,940$6,600$5,280$264$2,985$950$88,019
$63K p.a.9.5%20 daysMedibank Private2 months$200K11133$63,000$5,670$5,985$5,040$1,512$3,540$950$85,697
$69K p.a.9.5%20 daysMedibank Private1 monthNot provided11134$69,000$6,210$6,555$5,520$828$3,540$0$91,653
$63K p.a.10%20 daysBupa1 month$200K11135$63,000$5,670$6,300$5,040$756$2,985$950$84,701
$69K p.a.9.5%20 daysMedibank Private2 monthsNot provided11136$69,000$6,210$6,555$5,520$1,656$3,540$0$92,481
$63K p.a.10%20 daysBupa2 months$200K10137$63,000$5,670$6,300$5,040$1,512$2,985$950$85,457
$63K p.a.9.5%25 daysBupa10 days$400K10138$63,000$5,670$5,985$6,300$252$2,985$2,000$86,192
$69K p.a.10%20 daysBupa1 monthNot provided10139$69,000$6,210$6,900$5,520$828$2,985$0$91,443
$66K p.a.10%20 daysMedibank Private10 days$200K10140$66,000$5,940$6,600$5,280$264$3,540$950$88,574
$69K p.a.10%20 daysBupa2 monthsNot provided10141$69,000$6,210$6,900$5,520$1,656$2,985$0$92,271
$63K p.a.10%20 daysMedibank Private1 month$200K10142$63,000$5,670$6,300$5,040$756$3,540$950$85,256
$63K p.a.10%20 daysMedibank Private2 months$200K9143$63,000$5,670$6,300$5,040$1,512$3,540$950$86,012
$63K p.a.9.5%25 daysMedibank Private10 days$400K9144$63,000$5,670$5,985$6,300$252$3,540$2,000$86,747
$69K p.a.10%20 daysMedibank Private1 monthNot provided9145$69,000$6,210$6,900$5,520$828$3,540$0$91,998
$69K p.a.10%20 daysMedibank Private2 monthsNot provided9146$69,000$6,210$6,900$5,520$1,656$3,540$0$92,826
$63K p.a.10%25 daysBupa10 days$400K9147$63,000$5,670$6,300$6,300$252$2,985$2,000$86,507
$63K p.a.10%25 daysMedibank Private10 days$400K7148$63,000$5,670$6,300$6,300$252$3,540$2,000$87,062
$63K p.a.9.5%25 daysBupa10 days$200K7149$63,000$5,670$5,985$6,300$252$2,985$950$85,142
$63K p.a.9.5%20 daysBupa10 days$400K7150$63,000$5,670$5,985$5,040$252$2,985$2,000$84,932
$69K p.a.9.5%25 daysBupa10 daysNot provided7151$69,000$6,210$6,555$6,900$276$2,985$0$91,926
$63K p.a.9.5%25 daysMedibank Private10 days$200K6152$63,000$5,670$5,985$6,300$252$3,540$950$85,697
$63K p.a.9.5%20 daysMedibank Private10 days$400K6153$63,000$5,670$5,985$5,040$252$3,540$2,000$85,487
$66K p.a.9.5%25 daysBupa1 monthNot provided5154$66,000$5,940$6,270$6,600$792$2,985$0$88,587
$69K p.a.9.5%25 daysMedibank Private10 daysNot provided5155$69,000$6,210$6,555$6,900$276$3,540$0$92,481
$63K p.a.10%25 daysBupa10 days$200K5156$63,000$5,670$6,300$6,300$252$2,985$950$85,457
$63K p.a.10%20 daysBupa10 days$400K5157$63,000$5,670$6,300$5,040$252$2,985$2,000$85,247
$66K p.a.9.5%25 daysBupa2 monthsNot provided5158$66,000$5,940$6,270$6,600$1,584$2,985$0$89,379
$69K p.a.10%25 daysBupa10 daysNot provided5159$69,000$6,210$6,900$6,900$276$2,985$0$92,271
$66K p.a.9.5%25 daysMedibank Private1 monthNot provided4160$66,000$5,940$6,270$6,600$792$3,540$0$89,142
$63K p.a.10%25 daysMedibank Private10 days$200K4161$63,000$5,670$6,300$6,300$252$3,540$950$86,012
$63K p.a.10%20 daysMedibank Private10 days$400K4162$63,000$5,670$6,300$5,040$252$3,540$2,000$85,802
$63K p.a.9.5%20 daysBupa10 days$200K4163$63,000$5,670$5,985$5,040$252$2,985$950$83,882
$66K p.a.9.5%25 daysMedibank Private2 monthsNot provided4164$66,000$5,940$6,270$6,600$1,584$3,540$0$89,934
$66K p.a.10%25 daysBupa1 monthNot provided3165$66,000$5,940$6,600$6,600$792$2,985$0$88,917
$69K p.a.10%25 daysMedibank Private10 daysNot provided3166$69,000$6,210$6,900$6,900$276$3,540$0$92,826
$69K p.a.9.5%20 daysBupa10 daysNot provided3167$69,000$6,210$6,555$5,520$276$2,985$0$90,546
$66K p.a.10%25 daysBupa2 monthsNot provided3168$66,000$5,940$6,600$6,600$1,584$2,985$0$89,709
$63K p.a.9.5%20 daysMedibank Private10 days$200K2169$63,000$5,670$5,985$5,040$252$3,540$950$84,437
$66K p.a.10%25 daysMedibank Private1 monthNot provided2170$66,000$5,940$6,600$6,600$792$3,540$0$89,472
$66K p.a.9.5%20 daysBupa1 monthNot provided2171$66,000$5,940$6,270$5,280$792$2,985$0$87,267
$69K p.a.9.5%20 daysMedibank Private10 daysNot provided2172$69,000$6,210$6,555$5,520$276$3,540$0$91,101
$63K p.a.10%20 daysBupa10 days$200K2173$63,000$5,670$6,300$5,040$252$2,985$950$84,197
$66K p.a.10%25 daysMedibank Private2 monthsNot provided2174$66,000$5,940$6,600$6,600$1,584$3,540$0$90,264
$66K p.a.9.5%20 daysBupa2 monthsNot provided1175$66,000$5,940$6,270$5,280$1,584$2,985$0$88,059
$69K p.a.10%20 daysBupa10 daysNot provided1176$69,000$6,210$6,900$5,520$276$2,985$0$90,891
$66K p.a.9.5%20 daysMedibank Private1 monthNot provided1177$66,000$5,940$6,270$5,280$792$3,540$0$87,822
$63K p.a.10%20 daysMedibank Private10 days$200K1178$63,000$5,670$6,300$5,040$252$3,540$950$84,752
$66K p.a.9.5%20 daysMedibank Private2 monthsNot provided0179$66,000$5,940$6,270$5,280$1,584$3,540$0$88,614
$66K p.a.10%20 daysBupa1 monthNot provided0180$66,000$5,940$6,600$5,280$792$2,985$0$87,597
$69K p.a.10%20 daysMedibank Private10 daysNot provided0181$69,000$6,210$6,900$5,520$276$3,540$0$91,446
$66K p.a.10%20 daysBupa2 monthsNot provided0182$66,000$5,940$6,600$5,280$1,584$2,985$0$88,389
$66K p.a.10%20 daysMedibank Private1 monthNot provided-1183$66,000$5,940$6,600$5,280$792$3,540$0$88,152
$66K p.a.10%20 daysMedibank Private2 monthsNot provided-2184$66,000$5,940$6,600$5,280$1,584$3,540$0$88,944
$69K p.a.9.5%25 daysNot provided1 month$400K-3185$69,000$6,210$6,555$6,900$828$0$2,000$91,493
$69K p.a.9.5%25 daysNot provided2 months$400K-3186$69,000$6,210$6,555$6,900$1,656$0$2,000$92,321
$66K p.a.9.5%25 daysBupa10 daysNot provided-4187$66,000$5,940$6,270$6,600$264$2,985$0$88,059
$63K p.a.9.5%25 daysBupa1 monthNot provided-4188$63,000$5,670$5,985$6,300$756$2,985$0$84,696
$69K p.a.10%25 daysNot provided1 month$400K-5189$69,000$6,210$6,900$6,900$828$0$2,000$91,838
$63K p.a.9.5%25 daysBupa2 monthsNot provided-5190$63,000$5,670$5,985$6,300$1,512$2,985$0$85,452
$69K p.a.10%25 daysNot provided2 months$400K-5191$69,000$6,210$6,900$6,900$1,656$0$2,000$92,666
$66K p.a.9.5%25 daysMedibank Private10 daysNot provided-5192$66,000$5,940$6,270$6,600$264$3,540$0$88,614
$63K p.a.9.5%25 daysMedibank Private1 monthNot provided-5193$63,000$5,670$5,985$6,300$756$3,540$0$85,251
$66K p.a.10%25 daysBupa10 daysNot provided-6194$66,000$5,940$6,600$6,600$264$2,985$0$88,389
$63K p.a.9.5%25 daysMedibank Private2 monthsNot provided-6195$63,000$5,670$5,985$6,300$1,512$3,540$0$86,007
$63K p.a.10%25 daysBupa1 monthNot provided-6196$63,000$5,670$6,300$6,300$756$2,985$0$85,011
$69K p.a.9.5%25 daysNot provided1 month$200K-6197$69,000$6,210$6,555$6,900$828$0$950$90,443
$69K p.a.9.5%20 daysNot provided1 month$400K-6198$69,000$6,210$6,555$5,520$828$0$2,000$90,113
$63K p.a.10%25 daysBupa2 monthsNot provided-6199$63,000$5,670$6,300$6,300$1,512$2,985$0$85,767
$69K p.a.9.5%25 daysNot provided2 months$200K-7200$69,000$6,210$6,555$6,900$1,656$0$950$91,271
$69K p.a.9.5%20 daysNot provided2 months$400K-7201$69,000$6,210$6,555$5,520$1,656$0$2,000$90,941
$66K p.a.10%25 daysMedibank Private10 daysNot provided-7202$66,000$5,940$6,600$6,600$264$3,540$0$88,944
$66K p.a.9.5%20 daysBupa10 daysNot provided-7203$66,000$5,940$6,270$5,280$264$2,985$0$86,739
$63K p.a.10%25 daysMedibank Private1 monthNot provided-7204$63,000$5,670$6,300$6,300$756$3,540$0$85,566
$63K p.a.9.5%20 daysBupa1 monthNot provided-8205$63,000$5,670$5,985$5,040$756$2,985$0$83,436
$63K p.a.10%25 daysMedibank Private2 monthsNot provided-8206$63,000$5,670$6,300$6,300$1,512$3,540$0$86,322
$69K p.a.10%25 daysNot provided1 month$200K-8207$69,000$6,210$6,900$6,900$828$0$950$90,788
$69K p.a.10%20 daysNot provided1 month$400K-8208$69,000$6,210$6,900$5,520$828$0$2,000$90,458
$63K p.a.9.5%20 daysBupa2 monthsNot provided-8209$63,000$5,670$5,985$5,040$1,512$2,985$0$84,192
$69K p.a.10%25 daysNot provided2 months$200K-8210$69,000$6,210$6,900$6,900$1,656$0$950$91,616
$69K p.a.10%20 daysNot provided2 months$400K-8211$69,000$6,210$6,900$5,520$1,656$0$2,000$91,286
$66K p.a.9.5%20 daysMedibank Private10 daysNot provided-9212$66,000$5,940$6,270$5,280$264$3,540$0$87,294
$63K p.a.9.5%20 daysMedibank Private1 monthNot provided-9213$63,000$5,670$5,985$5,040$756$3,540$0$83,991
$66K p.a.10%20 daysBupa10 daysNot provided-9214$66,000$5,940$6,600$5,280$264$2,985$0$87,069
$63K p.a.9.5%20 daysMedibank Private2 monthsNot provided-9215$63,000$5,670$5,985$5,040$1,512$3,540$0$84,747
$63K p.a.10%20 daysBupa1 monthNot provided-9216$63,000$5,670$6,300$5,040$756$2,985$0$83,751
$69K p.a.9.5%20 daysNot provided1 month$200K-9217$69,000$6,210$6,555$5,520$828$0$950$89,063
$63K p.a.10%20 daysBupa2 monthsNot provided-10218$63,000$5,670$6,300$5,040$1,512$2,985$0$84,507
$69K p.a.9.5%20 daysNot provided2 months$200K-10219$69,000$6,210$6,555$5,520$1,656$0$950$89,891
$66K p.a.10%20 daysMedibank Private10 daysNot provided-10220$66,000$5,940$6,600$5,280$264$3,540$0$87,624
$63K p.a.10%20 daysMedibank Private1 monthNot provided-11221$63,000$5,670$6,300$5,040$756$3,540$0$84,306
$63K p.a.10%20 daysMedibank Private2 monthsNot provided-11222$63,000$5,670$6,300$5,040$1,512$3,540$0$85,062
$69K p.a.10%20 daysNot provided1 month$200K-11223$69,000$6,210$6,900$5,520$828$0$950$89,408
$69K p.a.10%20 daysNot provided2 months$200K-12224$69,000$6,210$6,900$5,520$1,656$0$950$90,236
$69K p.a.9.5%25 daysNot provided10 days$400K-12225$69,000$6,210$6,555$6,900$276$0$2,000$90,941
$66K p.a.9.5%25 daysNot provided1 month$400K-13226$66,000$5,940$6,270$6,600$792$0$2,000$87,602
$63K p.a.9.5%25 daysBupa10 daysNot provided-13227$63,000$5,670$5,985$6,300$252$2,985$0$84,192
$66K p.a.9.5%25 daysNot provided2 months$400K-14228$66,000$5,940$6,270$6,600$1,584$0$2,000$88,394
$69K p.a.10%25 daysNot provided10 days$400K-14229$69,000$6,210$6,900$6,900$276$0$2,000$91,286
$63K p.a.9.5%25 daysMedibank Private10 daysNot provided-15230$63,000$5,670$5,985$6,300$252$3,540$0$84,747
$66K p.a.10%25 daysNot provided1 month$400K-15231$66,000$5,940$6,600$6,600$792$0$2,000$87,932
$63K p.a.10%25 daysBupa10 daysNot provided-15232$63,000$5,670$6,300$6,300$252$2,985$0$84,507
$69K p.a.9.5%25 daysNot provided10 days$200K-15233$69,000$6,210$6,555$6,900$276$0$950$89,891
$69K p.a.9.5%20 daysNot provided10 days$400K-15234$69,000$6,210$6,555$5,520$276$0$2,000$89,561
$66K p.a.10%25 daysNot provided2 months$400K-15235$66,000$5,940$6,600$6,600$1,584$0$2,000$88,724
$63K p.a.10%25 daysMedibank Private10 daysNot provided-16236$63,000$5,670$6,300$6,300$252$3,540$0$85,062
$66K p.a.9.5%25 daysNot provided1 month$200K-16237$66,000$5,940$6,270$6,600$792$0$950$86,552
$66K p.a.9.5%20 daysNot provided1 month$400K-16238$66,000$5,940$6,270$5,280$792$0$2,000$86,282
$63K p.a.9.5%20 daysBupa10 daysNot provided-17239$63,000$5,670$5,985$5,040$252$2,985$0$82,932
$66K p.a.9.5%25 daysNot provided2 months$200K-17240$66,000$5,940$6,270$6,600$1,584$0$950$87,344
$66K p.a.9.5%20 daysNot provided2 months$400K-17241$66,000$5,940$6,270$5,280$1,584$0$2,000$87,074
$69K p.a.10%25 daysNot provided10 days$200K-17242$69,000$6,210$6,900$6,900$276$0$950$90,236
$69K p.a.10%20 daysNot provided10 days$400K-17243$69,000$6,210$6,900$5,520$276$0$2,000$89,906
$63K p.a.9.5%20 daysMedibank Private10 daysNot provided-18244$63,000$5,670$5,985$5,040$252$3,540$0$83,487
$66K p.a.10%25 daysNot provided1 month$200K-18245$66,000$5,940$6,600$6,600$792$0$950$86,882
$66K p.a.10%20 daysNot provided1 month$400K-18246$66,000$5,940$6,600$5,280$792$0$2,000$86,612
$63K p.a.10%20 daysBupa10 daysNot provided-19247$63,000$5,670$6,300$5,040$252$2,985$0$83,247
$69K p.a.9.5%20 daysNot provided10 days$200K-19248$69,000$6,210$6,555$5,520$276$0$950$88,511
$66K p.a.10%25 daysNot provided2 months$200K-19249$66,000$5,940$6,600$6,600$1,584$0$950$87,674
$66K p.a.10%20 daysNot provided2 months$400K-19250$66,000$5,940$6,600$5,280$1,584$0$2,000$87,404
$63K p.a.10%20 daysMedibank Private10 daysNot provided-20251$63,000$5,670$6,300$5,040$252$3,540$0$83,802
$66K p.a.9.5%20 daysNot provided1 month$200K-20252$66,000$5,940$6,270$5,280$792$0$950$85,232
$66K p.a.9.5%20 daysNot provided2 months$200K-20253$66,000$5,940$6,270$5,280$1,584$0$950$86,024
$69K p.a.10%20 daysNot provided10 days$200K-20254$69,000$6,210$6,900$5,520$276$0$950$88,856
$66K p.a.10%20 daysNot provided1 month$200K-22255$66,000$5,940$6,600$5,280$792$0$950$85,562
$66K p.a.10%20 daysNot provided2 months$200K-22256$66,000$5,940$6,600$5,280$1,584$0$950$86,354
$66K p.a.9.5%25 daysNot provided10 days$400K-22257$66,000$5,940$6,270$6,600$264$0$2,000$87,074
$63K p.a.9.5%25 daysNot provided1 month$400K-22258$63,000$5,670$5,985$6,300$756$0$2,000$83,711
$63K p.a.9.5%25 daysNot provided2 months$400K-23259$63,000$5,670$5,985$6,300$1,512$0$2,000$84,467
$66K p.a.10%25 daysNot provided10 days$400K-24260$66,000$5,940$6,600$6,600$264$0$2,000$87,404
$63K p.a.10%25 daysNot provided1 month$400K-24261$63,000$5,670$6,300$6,300$756$0$2,000$84,026
$63K p.a.10%25 daysNot provided2 months$400K-25262$63,000$5,670$6,300$6,300$1,512$0$2,000$84,782
$66K p.a.9.5%25 daysNot provided10 days$200K-26263$66,000$5,940$6,270$6,600$264$0$950$86,024
$66K p.a.9.5%20 daysNot provided10 days$400K-26264$66,000$5,940$6,270$5,280$264$0$2,000$85,754
$63K p.a.9.5%25 daysNot provided1 month$200K-26265$63,000$5,670$5,985$6,300$756$0$950$82,661
$63K p.a.9.5%20 daysNot provided1 month$400K-26266$63,000$5,670$5,985$5,040$756$0$2,000$82,451
$63K p.a.9.5%25 daysNot provided2 months$200K-26267$63,000$5,670$5,985$6,300$1,512$0$950$83,417
$63K p.a.9.5%20 daysNot provided2 months$400K-26268$63,000$5,670$5,985$5,040$1,512$0$2,000$83,207
$69K p.a.9.5%25 daysNot provided1 monthNot provided-26269$69,000$6,210$6,555$6,900$828$0$0$89,493
$69K p.a.9.5%25 daysNot provided2 monthsNot provided-27270$69,000$6,210$6,555$6,900$1,656$0$0$90,321
$66K p.a.10%25 daysNot provided10 days$200K-27271$66,000$5,940$6,600$6,600$264$0$950$86,354
$66K p.a.10%20 daysNot provided10 days$400K-27272$66,000$5,940$6,600$5,280$264$0$2,000$86,084
$63K p.a.10%25 daysNot provided1 month$200K-28273$63,000$5,670$6,300$6,300$756$0$950$82,976
$63K p.a.10%20 daysNot provided1 month$400K-28274$63,000$5,670$6,300$5,040$756$0$2,000$82,766
$63K p.a.10%25 daysNot provided2 months$200K-28275$63,000$5,670$6,300$6,300$1,512$0$950$83,732
$63K p.a.10%20 daysNot provided2 months$400K-28276$63,000$5,670$6,300$5,040$1,512$0$2,000$83,522
$69K p.a.10%25 daysNot provided1 monthNot provided-28277$69,000$6,210$6,900$6,900$828$0$0$89,838
$69K p.a.10%25 daysNot provided2 monthsNot provided-29278$69,000$6,210$6,900$6,900$1,656$0$0$90,666
$66K p.a.9.5%20 daysNot provided10 days$200K-29279$66,000$5,940$6,270$5,280$264$0$950$84,704
$63K p.a.9.5%20 daysNot provided1 month$200K-29280$63,000$5,670$5,985$5,040$756$0$950$81,401
$63K p.a.9.5%20 daysNot provided2 months$200K-30281$63,000$5,670$5,985$5,040$1,512$0$950$82,157
$69K p.a.9.5%20 daysNot provided1 monthNot provided-30282$69,000$6,210$6,555$5,520$828$0$0$88,113
$69K p.a.9.5%20 daysNot provided2 monthsNot provided-30283$69,000$6,210$6,555$5,520$1,656$0$0$88,941
$66K p.a.10%20 daysNot provided10 days$200K-31284$66,000$5,940$6,600$5,280$264$0$950$85,034
$63K p.a.10%20 daysNot provided1 month$200K-31285$63,000$5,670$6,300$5,040$756$0$950$81,716
$63K p.a.10%20 daysNot provided2 months$200K-32286$63,000$5,670$6,300$5,040$1,512$0$950$82,472
$63K p.a.9.5%25 daysNot provided10 days$400K-32287$63,000$5,670$5,985$6,300$252$0$2,000$83,207
$69K p.a.10%20 daysNot provided1 monthNot provided-32288$69,000$6,210$6,900$5,520$828$0$0$88,458
$69K p.a.10%20 daysNot provided2 monthsNot provided-32289$69,000$6,210$6,900$5,520$1,656$0$0$89,286
$63K p.a.10%25 daysNot provided10 days$400K-34290$63,000$5,670$6,300$6,300$252$0$2,000$83,522
$63K p.a.9.5%25 daysNot provided10 days$200K-35291$63,000$5,670$5,985$6,300$252$0$950$82,157
$63K p.a.9.5%20 daysNot provided10 days$400K-35292$63,000$5,670$5,985$5,040$252$0$2,000$81,947
$69K p.a.9.5%25 daysNot provided10 daysNot provided-36293$69,000$6,210$6,555$6,900$276$0$0$88,941
$66K p.a.9.5%25 daysNot provided1 monthNot provided-37294$66,000$5,940$6,270$6,600$792$0$0$85,602
$63K p.a.10%25 daysNot provided10 days$200K-37295$63,000$5,670$6,300$6,300$252$0$950$82,472
$63K p.a.10%20 daysNot provided10 days$400K-37296$63,000$5,670$6,300$5,040$252$0$2,000$82,262
$66K p.a.9.5%25 daysNot provided2 monthsNot provided-37297$66,000$5,940$6,270$6,600$1,584$0$0$86,394
$69K p.a.10%25 daysNot provided10 daysNot provided-37298$69,000$6,210$6,900$6,900$276$0$0$89,286
$63K p.a.9.5%20 daysNot provided10 days$200K-38299$63,000$5,670$5,985$5,040$252$0$950$80,897
$66K p.a.10%25 daysNot provided1 monthNot provided-39300$66,000$5,940$6,600$6,600$792$0$0$85,932
$69K p.a.9.5%20 daysNot provided10 daysNot provided-39301$69,000$6,210$6,555$5,520$276$0$0$87,561
$66K p.a.10%25 daysNot provided2 monthsNot provided-39302$66,000$5,940$6,600$6,600$1,584$0$0$86,724
$66K p.a.9.5%20 daysNot provided1 monthNot provided-40303$66,000$5,940$6,270$5,280$792$0$0$84,282
$63K p.a.10%20 daysNot provided10 days$200K-40304$63,000$5,670$6,300$5,040$252$0$950$81,212
$66K p.a.9.5%20 daysNot provided2 monthsNot provided-41305$66,000$5,940$6,270$5,280$1,584$0$0$85,074
$69K p.a.10%20 daysNot provided10 daysNot provided-41306$69,000$6,210$6,900$5,520$276$0$0$87,906
$66K p.a.10%20 daysNot provided1 monthNot provided-42307$66,000$5,940$6,600$5,280$792$0$0$84,612
$66K p.a.10%20 daysNot provided2 monthsNot provided-43308$66,000$5,940$6,600$5,280$1,584$0$0$85,404
$66K p.a.9.5%25 daysNot provided10 daysNot provided-46309$66,000$5,940$6,270$6,600$264$0$0$85,074
$63K p.a.9.5%25 daysNot provided1 monthNot provided-46310$63,000$5,670$5,985$6,300$756$0$0$81,711
$63K p.a.9.5%25 daysNot provided2 monthsNot provided-47311$63,000$5,670$5,985$6,300$1,512$0$0$82,467
$66K p.a.10%25 daysNot provided10 daysNot provided-48312$66,000$5,940$6,600$6,600$264$0$0$85,404
$63K p.a.10%25 daysNot provided1 monthNot provided-48313$63,000$5,670$6,300$6,300$756$0$0$82,026
$63K p.a.10%25 daysNot provided2 monthsNot provided-49314$63,000$5,670$6,300$6,300$1,512$0$0$82,782
$66K p.a.9.5%20 daysNot provided10 daysNot provided-49315$66,000$5,940$6,270$5,280$264$0$0$83,754
$63K p.a.9.5%20 daysNot provided1 monthNot provided-50316$63,000$5,670$5,985$5,040$756$0$0$80,451
$63K p.a.9.5%20 daysNot provided2 monthsNot provided-50317$63,000$5,670$5,985$5,040$1,512$0$0$81,207
$66K p.a.10%20 daysNot provided10 daysNot provided-51318$66,000$5,940$6,600$5,280$264$0$0$84,084
$63K p.a.10%20 daysNot provided1 monthNot provided-51319$63,000$5,670$6,300$5,040$756$0$0$80,766
$63K p.a.10%20 daysNot provided2 monthsNot provided-52320$63,000$5,670$6,300$5,040$1,512$0$0$81,522
$63K p.a.9.5%25 daysNot provided10 daysNot provided-55321$63,000$5,670$5,985$6,300$252$0$0$81,207
$63K p.a.10%25 daysNot provided10 daysNot provided-57322$63,000$5,670$6,300$6,300$252$0$0$81,522
$63K p.a.9.5%20 daysNot provided10 daysNot provided-59323$63,000$5,670$5,985$5,040$252$0$0$79,947
$63K p.a.10%20 daysNot provided10 daysNot provided-61324$63,000$5,670$6,300$5,040$252$0$0$80,262


To identify which of these options are optimal, UMDF looked at the plot of preference scores vs. total cost for options near the budget constraint of $87K p.a. (highlighted in red below).


The following two options are close together on the scale of preferences, differing only in the percentage for superannuation. UMDF chose the first of these two options.

Base salarySuperannuation contribution rateAnnual leaveHealth insurance fundParental leaveLife insurance amountScoreRankSalary (calculated)Payroll tax (9%, calculated)Superannuation (calculated)Annual leave (calculated)Parental leave (calculated)Health insurance (calculated)Life insurance (calculated)Total cost (calculated)
$63K p.a.9.5%25 daysBupa1 month$400K2080$63,000$5,670$5,985$6,300$756$2,985$2,000$86,696
$63K p.a.10%25 daysBupa1 month$400K1888$63,000$5,670$6,300$6,300$756$2,985$2,000$87,011


This example shows only one of the ways conjoint can be used by human resources professionals. Please contact our friendly team to discuss any HR-related applications for discrete choice studies.