Employee benefits strategy key to talent retention
Attracting and retaining the best talent will be a key priority for companies in the Asia-Pacific region in 2023, with 28% reporting an increase in turnover of more than 5% in 2022.
According to Aon’s 2022 Asia Pacific Employee Benefit Trends Report, employers are offering holistic compensation packages, including benefits to attract and retain people with the right skills, as they face challenges such as inflation and skills shortages.
However, 41% of employers reported that their benefits were not sufficient to fulfil employees’ needs and 45% found that their benefits were perceived as “below market”.
Specifically, 55% of employers found the increasing cost in benefit plans as their top challenge in attracting and retaining talent, while 54% cited the unavailability of benefit packages that offer diversity, options, and flexibility as a challenge.
The report also highlighted that employees are increasingly seeking a work environment that supports their mental health and wellbeing, with increasing numbers asking for remote work arrangements, meaningful work, and shorter hours.
Employers recognise this, with 35% of those surveyed reporting that one in four of their employees may work remotely in future.
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However, while employee wellbeing was a key priority for 46% of the employers surveyed, one in two companies indicated that they lacked a clear benefits philosophy and that mid- to longer-term benefits strategy was a key future priority for them. Furthermore, one in five companies do not review their benefit offerings on a regular basis.