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A well-rounded benefits package can be a powerful differentiator in attracting talent, especially in a market where employees prioritise wellbeing and work culture just as much as salary.
This article is brought to you by Howden.
As we approach the final quarter of 2024, businesses across Asia Pacific (APAC) are faced with a complex challenge: Hiring managers are reporting the second strongest hiring outlook globally, signalling a robust demand for talent. Yet, this comes against the backdrop of a persistent talent shortage that continues to put HR teams under pressure to attract and retain skilled employees.
While talent scarcity means different things to different industries, forward-looking leaders now need to understand that competitive salaries alone won't suffice. To navigate this landscape, it is time they elevate their employee benefits strategies, to craft a compelling value proposition that not only retains top talent, but also attracts new hires who will be essential to business growth.
As Sarah Wong, Senior Director, Employee Benefits, Howden, affirms in a chat with HRO, employers are recognising that a well-rounded benefits package can be a powerful differentiator in attracting talent. This is especially so in a market where employees prioritise their wellbeing and work culture just as much as salary.
"In today’s tight talent market, employers are really dialling in on employee benefits as a way to stand out,” she points out. “It’s not just about offering medical coverage anymore. Companies are looking at the whole employee experience and moving beyond traditional health coverage."
In fact, she has been seeing more clients offering benefits that address work-life balance — things like mental health support, flexible work options, and wellness programmes. Such benefits, she says, speak directly to what today’s workforce values. "It’s all about showing employees that they’re cared for as individuals, not just workers. And honestly, that’s what keeps top talent sticking around."
How to approach an enhanced employee benefits strategy
Keeping the above in mind, let’s look at the strategic enhancements HR and benefits leaders can consider to close the talent gap, while aligning benefits with the evolving needs of employees.
One of the more effective strategies Sarah has witnessed is letting employees have more control over their benefits — i.e., allowing for flexibility and personalisation. The most popular example is offering a flexible benefits allowance that allows employees to choose the coverage that fits their unique needs, whether that is personal insurance coverage, fitness memberships, or even financial planning services.
"It’s all about giving people choices," Sarah states.
Employers can also look into offering benefits that tie into personal development — for instance, reimbursing professional fees for courses or certifications. "Employees love it because they feel supported in their growth, and it’s a great way to address skill shortages internally,” Sarah notes. This trend aligns closely with what research in Singapore is showing, whereby nearly half of employees surveyed by NTUC LearningHub in 2023 said continuous learning, remains a priority for them. In separate research by Reeracoen, professional development emerged a top area of preference for employees when looking to work for or stay with an employer.
As Sarah thus affirms, today’s progressive philosophy is about looking at benefits not just as a cost, but as a way to align with employees’ personal values and life goals — an approach that has helped companies stand out in this competitive hiring landscape.
Leveraging digital solutions to effectively manage employee benefits
The rise of digital tools has eased the workload of benefits leaders, most significantly in management of their benefits offerings. As Sarah shares, everything from claims processing to benefits enrolment is becoming “a lot smoother with automation.
Where it gets more exciting, she adds, is the impact on employee experience — with mobile applications such as Howden’s MediHub that allow employees to access their benefits, submit claims, or even track their benefits usage all in one place. This ensures employees have a more seamless and intuitive experience in a process that was often considered time-consuming in the past.
There are merits to be enjoyed by employers as well, as Sarah elaborates. "Data analytics in these digital solutions can help companies understand how their benefits are trending and make informed tweaks to optimise their offerings.
"By integrating these digital solutions, employers can offer a seamless and user-friendly benefits experience while gaining the insights needed to refine their programmes continuously."
Words of wisdom to employee benefits leaders
Having gained abundant clarity on leveraging employee benefits as a competitive advantage, we ask Sarah for advice on how employee benefits leaders can get started or make measurable leaps on this journey.
First things first, in the current environment, it is vital to design employee benefits programmes that are sustainable, adaptable, inclusive, and responsive to evolving workforce needs. The key here is flexibility and relevance, she tells us.
"Start by understanding what your employees actually need and want, whether that’s mental health resources or options for remote work support. We’re moving away from one-size-fits-all benefits to more modular, customisable plans where employees can pick and choose what suits them best.”
At every step of the journey, communication remains critical, as she highlights that "benefits don’t mean much if employees don’t know how to use them or why they’re valuable."
To that effect, it is important that leaders have in place regular feedback loops that create avenues to adjust their benefits as employees’ needs change.
"In today’s environment, being adaptable and listening to your employees’ voices is what makes a benefits programme truly strategic," the leader concludes.
One thing that has become clear is, to stay relevant in the current competitive talent landscape, employers and their HR & benefits teams must look into enhancing their value proposition or talent retention strategies. Companies that take the step to invest in innovative, flexible, and technology-driven benefits could find themselves better positioned to attract and retain the top talent necessary for sustainable growth.
Find out how you can partner with Howden to take your employee benefits strategy to the next level.
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