In a world where the nature of the workplace is evolving and competition for talent continues to grow, a reassessment of employee benefits is critical. And in this changing landscape, one question looms: is salary still king when it comes to securing the loyalty of staff?
“Research suggests that salary alone cannot buy employee engagement or loyalty,” says Richard Roper, president of human resources consulting firm Mercer in Hong Kong and Macau. “In fact, our research suggests employers that offer 10 or more benefits have better employee retention.”
According to Mercer, 60 per cent of employees in Hong Kong will only consider a job offer if it includes flexible work arrangements. Meanwhile, 50 per cent of companies in the city have indicated that they are prioritising some form of flexible working.
When the digitalisation of employee benefits was expedited to meet the needs of a remote workforce during the Covid-19 pandemic, individuals started to reassess their work-life balance.
Roper says this was especially evident among members of Generation Z who were dealing with major global crises for the first time, including geopolitical incidents, the pandemic, the increasing cost of living and environmental disasters.
“They’ve tasted the freedom of flexibility, they want to work for purpose-driven organisations, and they’re more focused on their own health and happiness,” he notes. “Companies that aren’t keeping pace with these changes will lose out in the war for talent.”
Therefore, Mercer considers it essential that companies offer employee benefits that are not only relevant to the needs of every member of staff, but also flexible enough to accommodate individual circumstances, different generations and various stages of life. In addition, they need to stay ahead of what competitors are offering.
A building-block approach can be used to develop a more innovative benefits package – it begins with salary and incentives, then is followed by medical, life and accident insurance coverage.
“Then you move into ensuring that employees are supported in their mental health and overall physical well-being,” Roper adds, noting that this can include employee assistance programmes or providing psychological help in times of distress or trauma.
Benefits addressing specific healthcare needs for both men and women also make appealing options, in addition to those focused on aspects of wellness such as sleep, nutrition and exercise.
The most generous benefits packages even grant “paw-ternity” leave, which Roper explains as: “If your pet has babies, you can have time off to care for them.”
Consulting firms such as Mercer have the resources to help companies transform their employee benefits offerings. “They have very deep knowledge banks with global, regional and local research to drive internal decisions using the data these companies hold. This will ensure they get a tailored solution for your organisation,” Roper says.
Employee engagement surveys have proven to be a vital tool in this process, as they can identify elements that are working well for staff and pinpoint where improvements can be made, while also establishing a baseline to work from. “Each year, this can be revisited so that the value of investment can be measured, and any programmes can be refined based on the changing needs of the workforce,” Roper notes.
“Ultimately, it’s about empowering companies to make decisions based on real research and data. This will cascade to employees to build a healthier, happier and more productive workforce.”