As companies compete to attract, recruit, and retain the best talent, employee benefits are playing an increasingly important role. Potential hires can sometimes have the upper hand as they evaluate the whole benefits package, not just the bottom line salary, when choosing which role to accept. There has also been a shift in employee priorities since the pandemic, meaning that businesses have had to re-evaluate their benefit offerings in order to remain competitive.
The CIPD’s 2024 Asia Employee Benefits report focuses on insights from professionals that are predominantly based in Singapore and Hong Kong. It reveals trends in employee benefits, which factors are important when developing benefits offers, and what benefits are currently being offered, as well as looking forward to what benefits we’ll see more of in the future.
Let’s dive further into the report’s findings to identify how your business can create meaningful and competitive benefits packages that will attract the right talent.
Key findings on priorities
Over half of the report’s respondents cited employee satisfaction and retention as their main consideration when designing benefit packages. A survey by WTW reported that 85% of employees are likely to remain with their employers if the benefits package meets their needs.
The most desirable benefits can be broken down into three priority areas. WTW note that while employers prioritise mental and physical wellbeing, employees prioritise financial and mental wellbeing.
1. Mental wellbeing
Since the pandemic, mental wellbeing has been in the spotlight more than ever. Many businesses have re-evaluated strategies for supporting their staff, with benefits playing a part in this. A key element of mental wellbeing is providing the right work-life balance and flexible working options. Benefits such as mental health days and awareness-raising workshops are also worthwhile.
2. Physical wellbeing
The understanding that physical health plays an important role in reducing absenteeism and improving productivity has led businesses to develop benefits that support this aim. Offers such as gym membership and discounted eye care are now common.
3. Financial wellbeing
Workers have money worries or are financially stressed, so employers have reacted by introducing benefits that reduce this risk or help those in difficulty. While there may not be cash in the budget to increase salaries, signposting employees to support and guidance is an alternative benefit that signals a company’s understanding.
The CIPD report found budgets and employee wellbeing to be the top considerations in benefits development for HR practitioners and business owners. The importance of employee wellbeing, on a par with budgets, shows how far businesses have come in recognising the impact of burnout and low morale on productivity.
Less important, but also relevant to this group, is ensuring that the benefits on offer keep up with industry trends, improve productivity, align with company values, and enhance the employer brand.
Offering outplacement as an employee benefit is certainly worth considering. It supports mental health, by removing some of the anxiety and stress around potential job loss, and also supports financial wellbeing by placing retrenched employees quickly into new roles.
Trends impacting employee benefits
The CIPD report identified the seven biggest trends impacting employee benefits as:
1. Competition for talent
2. Hybrid working
3. Digital transformation
4. Sustainability
5. Aging workforce
6. Diversity and inclusion
7. Legislative changes
The 3 most common employee benefits
Employees value benefits that meet both their immediate needs and long-term goals. These were the most common ones identified by the survey:
Insurance benefit
85% of companies provide insurance benefits, including life and accident insurance, critical illness cover, health insurance for dependents, and medical, dental, travel, maternity, and disability income protection insurance.
Wellness programmes
As awareness of workplace stress and empathetic leadership increases, companies are turning to wellbeing programmes. Benefits in this area include health screenings, mental health resources, and mindfulness apps. Companies benefit from increased productivity and reduced absenteeism, as well as talent retention.
Training and skills development
With the advent of automation and artificial intelligence, alongside constantly changing business needs, the demand for skills is changing too. While some skills are less in demand, other new ones are taking their place. Employers are making long-term investments in their staff by providing training and development opportunities, while employees benefit from increased employability.
Benefits for the future
The report notes that most employers will be adding to or improving their insurance benefits over the next few years. Two-fifths will also add to or improve health and wellbeing benefits, suggesting that the focus is moving beyond traditional financial incentives while addressing the impact of an aging workforce.
Other benefits set to grow in the near future include:
- Flexible benefits (letting staff choose the benefits that fit their needs)
- Remote working
- Skills development
- Additional paid leave
- Optical benefits
- Green benefits (such as public transport subsidies or carbon-offset programmes)
- Childcare support
- Student loan assistance
Other benefits may also be worth considering, such as:
- Work from home allowances: Providing employees with a budget or equipment to set up a suitable work environment at home, such as ergonomic chairs
- Retirement benefits: Pension plans and stock ownership plans to top up the mandatory Central Provident Fund contributions
- Flexible working: Remote or hybrid work, compressed working weeks and flexible working hours
- Generous leave allowance: Employers often offer more than the mandatory minimum of seven days, with unlimited time off and sabbaticals becoming increasingly available
Challenges in developing competitive benefits packages
Predictably, budgets were cited as the main challenge in developing a comprehensive benefits offering. With employee satisfaction and retention being top priorities, 39% of Singaporean respondents gave meeting employee expectations as their next challenge.
Developing an employee benefits package
For a business to achieve its main objectives of attracting and retaining talent, while increasing employee satisfaction, a strong benefits package is a non-negotiable requirement. However, a benefits package is not a static, one-off development. It needs to continually evolve to meet the changing needs of a diverse workforce as well as global trends.
Offering benefits that meet the expectations and preferences of a diverse workforce is a priority, so businesses must anticipate future needs. To do this, it’s crucial to engage in regular dialogue with the workforce and proactively seek feedback.
Final thoughts on employee benefits
A well-considered benefits package can underpin an engaged and productive workforce, while supporting long-term business success.
- Investing in employees is about more than doing the right thing – it gives a competitive advantage to your business
- Financial and mental wellbeing benefits are the most highly sought-after by employees
- Budgetary challenges are the main obstacle for businesses developing benefits packages
- Ongoing communication is needed to ensure the benefits programme continues to meet the needs of the workforce
Have you considered adding outplacement services to your benefits package? When instability and stress creep into the workforce, productivity suffers – but outplacement provides peace of mind for existing employees and reassurance for potential new hires.
Careerminds provides coaching and support for employees facing retrenchment. Contact us today to find out how we can partner with your business to build your employer brand, support your existing employees, and add outplacement to your overall benefits package.
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