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2023 Benefits Trends Survey, Singapore

July 24, 2023

Benefits are no longer taking a backseat. Companies recognise that pegging compensation against inflation not only creates pressure on business margins, it dampens the ability to compete in the shrinking talent pool.
Health and Benefits|Inclusion-and-Diversity|Retirement|Benessere integrato|Employee Financial Resilience
Infographic entitled Employee benefits remain crucial in talent attraction and retention
shows key findings from the Benefits Trend Survey, Singapore.

Employee benefits remain crucial in talent attraction and retention

Key findings in Singapore

Conflicting ambitions

  • Desire to improve benefits to attract and retain talent
  • Face cost challenges due to a weaker business environment and concerns about workforce performance

Mismatched priorities

Employees have greater emphasis on

  • Short- and long-term financial security
  • Benefits decisions making
  • Support on families’ needs

Future direction

  • Almost all employers desire to at least be ‘at market’ for their broader portfolio of benefits
  • An increasing number of employers are targeting an ‘above market’ position

Conflicting ambitions

Rising costs impacting organization's benefits budget despite a desire to improve benefits to deal with competition for talent identified as a number one issue influencing benefits strategy.

Key factors influencing benefits strategy

Table comparing 2021 and 2022 on key factors influencing benefits strategy
Key factor 2021 2023
#1 Focus on inclusion and diversity Competition for talent
#2 Competition for talent Rising costs
#3 Flexible work arrangements Focus on inclusion and diversity
#4 Rising costs Flexible work arrangements

Reasons for rising costs

  • 59% Persistence of higher inflation
  • 52% Weakening economy and business environment

Mismatched priorities

Employers are not delivering the benefits that employees desire. This misalignment boils down to differences in their objectives around benefits: Employers tend to prioritise business resilience and thus focus on core benefits that support universal, unchanging needs; whilst employees typically see benefits as a solution in addressing the most pressing needs in their day-to-day activities.

Employer and employee benefits priorities

Table comparison of benefits priorities between employer and employee
Employee Employer
Flexible work arrangements 43% 35%
Retirement plan / long term finances 37% 3%
Support for employees’ benefits decision 32% 5%
Financial wellbeing / short-term finances 21% 5%

Future direction

Companies should always consider taking a holistic approach to improve their employees’ benefits strategies, with a focus on improving wellbeing, providing more choices and flexibility, ensuring the affordability of benefits, and meeting the needs of an increasingly diverse workforce. In our findings, employers have a desire to enhance benefits across the portfolio. Here are some of the actions taken.

  • 51% of employers are looking at financing benefits through vendor solutions.
  • 33% of employers are looking to enhance employee experience through digital platforms.
  • 75% of employers plan to analyse claims and usage data to understand cost drivers, as well as to forecast future benefits costs and risks.

About the survey: 111 employers with an employee size of 0.2million participated in the 2023 Benefits Trends Survey, Singapore.

Source: WTW Benefits Trends Survey 2023, Singapore
Copyright © 2023 WTW. All rights reserved.

For more findings from the 2023 Benefits Trends Survey, Singapore, contact WTW today.

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