According to a new survey by Willis Towers Watson, almost two-thirds of Hong Kong employees do not feel that their benefits packages meet their needs. Conversely, 65% of employers feel employees highly value their benefits package.
Employers are often unaware of this gap. While 78% of employers think that employees have a very good understanding of their benefits packages, only 53% of employees do.
Royston Tan, Head of Health & Benefits, Hong Kong, Willis Towers Watson commented, “If 64% of employees in Hong Kong are unhappy about their benefits while their employers are not even aware, then this is very worrying, particularly as benefits cost continues to soar. The gap shows the need for an effective employee communication strategy that gets regular feedback from employees and shows a genuine effort to listen to their needs.”
Surging benefits cost the most pressing challenge
More than 83%of Hong Kong employers expressed concern about rising benefits costs, well above the regional average of 67%.
The second most pressing challenge cited by just over half of Hong Kong employers was “insufficient financial support to make necessary benefits changes” which was slightly higher than the region average.
Tan added, “Tepid economic growth and high business operating costs have both played a part in making employers cautious of any increase to their benefits spending.”
Trends in benefits design—a focus on well-being and flexibility
As employers look inward and realise that needs are diverse, many look to design packages that go beyond traditional benefits. There is a particular focus on well-being, something that raises employee satisfaction with benefits. Tan predicted, “From physical activity programmes to behavioural and emotional guidance, the next few years will see a change of focus in benefits for employees.”
Flexibility is also something that employees want more of, and employers are increasingly recognising its value. As much as 78% of Hong Kong employers believe offering flexibility in their benefits package can demonstrate a company’s recognition of employees’ diverse needs, while 69% believe it promotes employee understanding and appreciation of benefits.
Despite increasing costs, the survey also found that about 30% of employers in Hong Kong are considering providing increased flexibility for employees in their benefits packages..
Paul Arkwright
Publisher
