Events of recent years have forced employers to reassess and adjust their benefit plans to meet the changing priorities and conditions of their employees. The new normal deepened the connection people have with technology due to the need to minimise face-to-face interaction, alongside the acceleration of digitalisation and workplace transformation. These changing times call for employers to be bold and innovative when it comes to their benefit programs – to support their diverse (multigenerational and multicultural) workforces in different situations and drive a strong employee experience.
Flexible benefits enable employees to personalise their benefit package using employer-provided options that are most relevant to them. Aside from providing a core level of benefits, employers can provide varied offerings and bring more valuable benefit options to their employees. For example, a young employee caring for elderly parents may opt for a benefit package with additional medical services, while an employee with school-age children may prefer more vacation leave or childcare benefits.
Employees see greater value when offered more flexible choice for their benefits.
Employees see greater value when offered more flexible choice for their benefits (Figure 1).1 Flexible benefits give employees more control, which can help them to feel more positive about their benefits and increase their understanding and usage of the benefit plan. This can be an effective differentiator for branding, talent attraction and retention, and engagement as it assures employees that the organisation cares about their specific circumstances in life.
Employers can also optimise costs and better budget for benefit offerings by focusing more on benefits that matter to their workforce.
Across Asia Pacific, nearly one-third of organisations are already offering choice and customisation in their benefit offerings. In the next two years, a further 49% plan to introduce flexibility or broaden their benefit packages (Figure 2)2.
For employers planning to offer flexible benefits, there are three areas of focus:
Offering only the most relevant benefits can avoid overwhelming employees and minimise the frustration that can come from too much choice (Figure 3)1. Employers can identify employees’ actual needs and wants by developing effective listening strategies to create an appropriate and robust list of relevant and targeted benefit choices. This will empower employees to make the right choices and make better use of their benefits.
Employers can identify employees’ actual needs and wants by developing effective listening strategies to create an appropriate and robust list of relevant and targeted benefit choices.
Employees are likelier to appreciate and maximise their benefit plan if they know and understand its components. Organisations can communicate their benefit programs through a myriad of interactive, online and offline channels, from email newsletters to town halls and educational videos. Effective communication strategies are best segmented to the type of workforce, for example manufacturing employees may benefit more from offline communications, while office-based teams may prefer online communication.
The employer role in benefit education is extremely important — over 50% of employees from various generations select their benefits after reviewing information from their employers (Figure 4)1. According to our 2021 Benefit Trends Survey, a third of employers in Asia Pacific believe their benefit communications enhance employee appreciation of the employment deal.
To what extent employees review the information provided by employers to make benefit choices?
Over 50% of employees from various generations select their benefits after reviewing information from their employers: Baby boomers at 67%, Generation X at 65%, Generation Y at 64% and Generation Z at 54%.
Younger generations prefer to speak with family, friends, and co-workers (59%) before making their benefit choices. Social connections within the workplace, such as affinity groups or company forums, can improve employee engagement in benefit programs and employee wellbeing.1
Modern technology has interwoven with our everyday lives to make tasks easier, faster, and more accessible — it allows us to pay our bills online, communicate with people remotely, and digitally collaborate with colleagues. Employees have an increasing expectation to manage and access their benefits through a similar digitalised experience. This can improve benefit administration, management and efficiency by automating annual benefit enrolments, providing on-demand access to benefit information, automating claims filing, and other important functionalities.
Offering a flexible range of benefits does not have to be overwhelming. There are three things that organisations can consider when designing a flexible benefit plan geared to meeting employee needs and employer objectives:
Giving employees the ability to choose what matters to them and their loved ones, is one step towards building a better employee experience.
Transforming benefits to offer more choice and flexibility comes with many advantages for employers and employees. Today’s workforce increasingly want employers to take a more active role in protecting their health and wellbeing, and employers have shown they are willing to step up. Giving employees the ability to choose what matters to them and their loved ones, is one step towards building a better employee experience.
Stay tuned for the next article in our series on benefits and the employee experience, where we tackle the impact of burnout.
1 2019/2020 Global Benefit Attitudes Survey
2 2021 Benefit Trends Survey – Asia Pacific