There is a growing gap between employers and employees concerning benefit packages. Almost 60% of employees would consider benefits when deciding on leaving or staying with an employer, and nearly 70% would prefer to have flexibility in managing their benefits. Despite this over 60% of employers have made no changes to their benefit programmes over the last year. This according to the latest Towers Watson 2010 Global Workforce Study.
The survey revealed that although most employees understand that they are primarily responsible for their financial security and wellbeing, under half of them feel comfortable in managing retirement income and post-retirement healthcare. Close to 30% of those surveyed indicated they would have to work after retirement for financial reasons. Deirdre Lander, Director of Data, Surveys and Technology, Towers Watson Hong Kong said, “Employees know that they are increasingly on their own for everything from managing their career, to planning for a secure retirement—but do not feel well equipped to deal with it.” The survey also indicates that regular communication about reward and benefits is becoming increasingly important for HR. This seems to falling on deaf ears though as most employers simply stick with existing benefit packages.
Lander highlighted that the ‘paternalistic’ employment proposition—typical of last century—is unsustainable for most employers today. In order to take advantage of a strong business position and boost employee engagement and productivity, she advised HR to look at three key areas:
Honing their ability to enable employee self-reliance, fostering within each person the knowledge, skills and confidence necessary to effectively manage their careers, their benefits and their financial future
Creating a more personalised work experience for segments of the workforce, aligned with how employees add value to the business
Developing leaders, reward structures, and HR programmes that are more flexible and responsive to the ever-changing global business environment
Paul Arkwright
Publisher
