25% of employers to enhance insurance coverage in the next two years

More than half of companies are already offering health and wellbeing benefits.

Employers in Singapore and Hong Kong are looking into enhancing life/accident insurance (25%), outpatient insurance (24%), and health/well-being benefits (42%). Current benefits offerings focus on health and well-being, with 58% offering health and well-being benefits and 49% providing flexible/remote working options. 

The most common insurance benefits for employees are life/accident (52%), hospitalisation and surgical (47%), and outpatient insurance (46%), similar to other international data.

A recent report by the Chartered Institute of Personnel and Development (CIPD) in partnership with AIA sheds light on the significant influence of talent competition on employers' approaches to employee benefits, with 47% of surveyed organisations highlighting this impact.

“Our inaugural report with CIPD explores how an increasing focus on flexibility, preventative care and holistic wellbeing complements comprehensive insurance offerings to help businesses create stronger benefit packages to attract and retain talent. David Chow, Director, Group Corporate Solutions, AIA Co. Ltd. said in a press release.

“With today’s workforce seeking more than just monetary benefits, employers need to reassess their insurance packages to see if any coverage needs to be added or enhanced for them to be more competitive and meet employee expectations,” Chow added.

ALSO READ: 4 out of 5 HK employees weigh health support in job decisions

Despite this, only 26% prioritise gathering employee feedback, revealing a gap between employer understanding and employee needs.

“The report underscores the importance of regular feedback to tailor benefits effectively, fostering employee satisfaction and retention while attracting new talent.“Amidst the increasing demand for talent and shifting employee priorities since the pandemic, staff benefits are more critical than ever,” said May Leng Kwok, Head of Market Development at CIPD in the statement.

Organisations are recognising this shift and are actively tailoring their benefits offerings to resonate with the evolving needs of their workforce; however, more can still be done to meet employee expectations. This report aims to serve as a valuable guide to equip employers with insights and strategies needed to navigate this dynamic landscape.” Kwok added.

Key findings highlight trends such as talent competition and hybrid working, with Singapore respondents prioritising employee satisfaction and retention. Challenges in designing benefits include budgetary constraints and meeting employee expectations, indicating a need for improved feedback mechanisms.

The survey gathered insights from 400 respondents,  predominantly HR practitioners, in Singapore and Hong Kong.