A new report by the Chartered Institute of Personnel and Development (CIPD), the professional body for HR and people development, finds that competition for talent is having the biggest impact on employers’ employee benefits approach, according to almost half (47%) of organisations surveyed.
In partnership with insurance provider AIA, the report also highlights increasing employee satisfaction and retention as the most important factor in designing benefits.
More than two in five (42%) of respondents said that meeting employee expectations was a challenge when designing their employee benefit offerings.
Despite this, just one in four (26%) said that gathering employee feedback was important to them as part of this process.
This suggests there is a current disconnect between employers knowing what their people want, and creating a benefits package that meets their needs.
There is a real opportunity for employers to better understand their people’s needs by gathering feedback regularly to ensure that their benefits package is both valued and used by employees.
In turn, this will help to retain and engage existing staff and attract new employees as well.
The new report, titled “Asia Employee Benefits Report”, explores current and future employee benefits, and the strategies and policies implemented in organisations.
The survey gathered insights from over 400 respondents, predominantly HR practitioners, in Singapore and Hong Kong.
May Leng Kwok, Head of Market Development, Global, for CIPD, said, “Amidst the increasing demand for talent and shifting employee priorities since the pandemic, staff benefits are more critical than ever.”
“Organisations are recognising this shift and are actively tailoring their benefits offerings to resonate with the evolving needs of their workforce; however, more can still be done to meet employee expectations.”
“This report aims to serve as a valuable guide to equip employers with insights and strategies needed to navigate this dynamic landscape,” she said.
David Chow, Director, Group Corporate Solutions, AIA Co. Ltd., said, “Our inaugural report with CIPD explores how an increasing focus on flexibility, preventative care and holistic wellbeing complements comprehensive insurance offerings to help businesses create stronger benefit packages to attract and retain talent.”
“With today’s workforce seeking more than just monetary benefits, employers need to reassess their insurance packages to see if any coverage needs to be added or enhanced for them to be more competitive and meet employee expectations,” he said.
Key findings from the report include:
- Trends impacting organisations’ approach to employee benefits
Nearly half (48%) of Singapore respondents said competition for talent is the biggest trend driving (their benefits approach. Two in five said hybrid working (39%) as digital transformation is the third most common trend, cited by 30% of respondents.
While hybrid working was one of the top three trends in Singapore, Hong Kong respondents highlighted sustainability as a top three factor instead.
- Important factors & challenges in designing the benefits offered
Singapore respondents said increasing employee satisfaction and retention was the most important factor when designing employee benefits, with nearly half (47%) citing this. Improving productivity was also among the top three most important factors (36%).
Almost two-thirds of Singapore respondents (62%) said that budgetary controls and considerations were their biggest challenge when designing their benefits offering.
Meeting employee expectations was the second biggest challenge. A possible reason for this is that just a quarter of employers across Singapore and Hong Kong (26%) said that gathering employee feedback was important when designing their benefits offering
Recommendation: To increase employee satisfaction & retention, employers need to focus on truly understanding their people’s individual needs by gathering feedback using digital platforms. Technology can also help employers measure the effectiveness of current benefits, so they can tailor and adjust packages accordingly, and provide data to benchmark against other organisations in the industry.
- Benefits currently being provided
Health and wellbeing benefits are the most common type of non-insurance benefit currently provided by Singapore employers, with 58% citing this. Flexible/remote working is being provided by 49% of respondents, reflecting the importance of hybrid work as a top trend impacting the benefits landscape in the country.
The most common insurance benefits currently offered to staff in Singapore are life/accident (52%), hospitalisation and surgical (47%), and outpatient insurance (46%), similar to other international data.
- Future benefit priorities
The top three insurance benefits organisations in Asia are looking to add or enhance in the next two years are life/accident insurance (25%), outpatient insurance (24%), and hospitalisation and surgical insurance (17%).
In terms of non-insurance benefits being focused on for future development, 42% of companies highlighted health and well-being benefits. Training and career development opportunities are among the top three, with 17% of respondents citing this.
Recommendation: Organisations must take into account the shifting landscape and find creative ways to align their benefits provisions accordingly. The key will be focusing on what is valued by staff and what is positively impacting engagement and retention. One way to do this is by offering flexible or voluntary benefits programmes that meet employee needs based on their life stages and circumstances.
May Leng Kwok concluded, “While the report acknowledges the challenges faced by organisations in designing comprehensive benefits programmes, it also emphasises that these present an opportunity for creativity and innovation.”
“By leveraging data analytics, gathering employee feedback, and embracing digital platforms, organisations can create effective and efficient benefits programmes that maximise both employee satisfaction and operational efficiency.”
