Pretium Partners 博盛亚洲
Reward  |  Performance  |  Transformation
  • Home
    • About Pretium
    • Our Expertise
    • Our Recognition & Strategic Partners
    • Contact
  • What's New ?
    • 1 x 1 = >10? Combine Talent Pass with Long-term Incentives to Maximize Talent Pool
    • Dual Impact of Bonus Plunge and Great Resignation Drive Staff Turnover to 5-Year High
    • Pay will be Above Pre-COVID levels; Financial Industry is Ahead in Benefiting from Recovery
    • Incentive Pay Makes Top US CEOs and CFOs Best Paid in World, According to First-Ever Global 250 Survey
    • How to Retain Key Talent after Bonus Season?
    • Differentiating Bonus with Performance
    • Is a Formula Better than Discretion in Paying Incentives?
    • Rippling Effect – More Industries Embrace Partnership
    • Globalization – It’s Easier Said Than Done
    • Strengthen Performance Planning to Drive Performance Management
    • Benefits as Essential Tool for Improving Employee Engagement
    • Shifting Away From “Low Pay, High Bonus” for Sustainability
    • Strengthen Pay & Performance Alignment For Top Executives
    • Budgeting & Manpower Planning: Top-down or Bottom-up?
    • Maximizing Employee Benefits
  • Challenges & Solutions
    • Pay Competitiveness
    • Short-Term Incentive Plan Design and Review
    • Long-Term Incentive Plan Design and Review
    • Performance Management
    • Executive Compensation
    • Employee Benefits
    • IPO Human Resources Strategies
    • Globalization >
      • Set up Subsidiaries in Asian Countries
    • M & A
    • Remuneration Committee Advisory >
      • Board Advisory
  • Research & Events
    • Pretium Year-end Rewards & HR Trends Survey
    • Our Past Events
    • Pretium Staff Ratios and Manpower Budgeting Survey
    • Pretium Compensation Level Survey
    • Pretium Incentive Practices Survey
    • Global Top 250 Compensation Survey Report
    • Pretium Pay & Performance Survey
    • Independent Non Executive Director Fee Study
    • Pretium Benefits & Employment Conditions Survey
    • Long-Term Incentive Survey Report – General Industries
    • Impact of COVID-19 and HR Action Survey
    • Retail Brokerage Survey
  • Case Studies
    • Promote Partnership with Long-term Incentives
    • Pre-IPO Long-Term Incentive Design for a Diversified Company
    • Strengthening Short-Term Incentive Strategy
    • Carried Interest and Performance Management
    • Strategic Compensation and Benefits Advisory Services
    • One-stop Human Resources Solutions
    • Grading and Job Title System
  • Career
  • 中文
Benefits as Essential Tool for Improving Employee Engagement 

Pretium study finds benefits policies are increasingly important in driving employee engagement

Pretium Benefits & Employment Conditions Study (“the Study”) indicated benefits strategy has become an integral part in enhancing the value proposition of staff engagement, attraction and retention.  When reviewing benefits policies and levels, the key considerations are:

·      Improving employee engagement – this is the most important consideration since increasing awareness and understanding of benefits can improve employee perception of benefits value

·         Attraction and retention – appropriate design of benefits programs to cater for employees’ needs at various levels. This could be an effective attraction and retention tool in talent competition, which is an angle that companies tend to easily over look

·         Cost optimization - benefits are significant investment but cost optimization is neither the primary nor the only consideration.  Companies are trying to strike a balance between optimizing benefits offering and managing costs

Among the companies surveyed, 53% of them indicated benefits cost accounts for less than 10% of their total payroll and 35% of the companies said the cost ranges from 10% to 20% of the total payroll.  As the HR budget is always tight, it is a challenging task of how the 10%+ benefits budget should be prioritized and spent among the competing benefits demands to strike a balance between employer of choice versus cost effectiveness. Some companies are assessing employees’ perceived value of different benefits or employment conditions, while others are benchmarking the benefits competitiveness and potential gap to identify where the dollars should be spent. Analyzing the demographics of the employee population, identifying the market gap and referring to the perceived value of different benefit items will give insights to whether the budget should be spent on time-off benefits, insurance benefits that protect employees and their family members, or on retirement benefits that provide future financial security, etc.

More than 60% of the companies surveyed have plans in changing benefit programs or employment conditions, which is another signal indicating benefits are high on the HR priorities.  Owing to rising medical costs, medical benefits (for instance, outpatient and hospitalization benefits upgrade and introduction of health management programs) top the agenda on benefits changes.  There has also been increasing emphasis on work-life balance and employee education when making benefits changes.  Obviously, the aging population weighs in the need to top up employer voluntary contribution to Mandatory Provident Fund.  Again, this highlights the need for HR to prioritize among different benefits items and employment conditions to maximize the benefits dollars which is critical to improving employee engagement.

Cost is not the number one driver in selecting benefits providers. Service is the primary consideration which includes service provided to both the HR department and the employees directly. Service excellence is reflected from seamless delivery of the claim and administration processes, which is especially important for different types of medical and other insurances.  With growing emphasis on self-service which enables employees to deal with the vendors or insurance companies directly for claim reimbursement or enquiries, system capability of the vendor becomes more important compared with the brand of the benefits providers.
Picture
Related Links
  • Employee Benefits
  • Pretium Benefits & Employment Conditions Survey
  • Strategic Compensation and Benefits Advisory Services
Address: Unit 1101, 11/F, Tai Yip Building,
               141 Thomson Road,
​               Wanchai, Hong Kong 


Tel:         +852-3996 7868
Email:     info@pretium-asia.com
Copyright © Pretium Partners Asia Limited 2023. All Rights Reserved.
Picture
Pretium Partners WeChat Official Account