Employers fail to offer impactful benefits

Two-thirds of Hong Kong businesses are clueless about what benefits employees value, according to a recent survey.

The study also found that leading organisations are two times more likely to have a ‘total rewards’ philosophy that customises benefits for different workforce segments. Yet, only 35% of Hong Kong businesses have a formal and personalised ‘total rewards’ philosophy.

Total rewards programs typically include tools employers use to attract, retain and engage employees including compensation, health and well-being programs, retirement and financial benefits, flexi-work, recognition programs, L&D and career progression opportunities.

“In today’s workforce, people have new expectations of work and expect to be treated more like consumers,” said Wen Wan, director of Talent & Rewards at Willis Towers Watson.

“Any initiative aimed at improving the experience must take into consideration what employees value most and how those preferences differ by employee segment.

“Our research and experience show that high cost rewards are not necessarily highly valued by employees and organisations end up spending on high-cost rewards that provide little return in employees’ engagement and retention.”

Employees expecting consumer-grade experience
Employees today expect rewards to be designed to reflect their preferences and delivered via a personalised, consumer-grade experience similar to what they have come to expect in their personal lives.

Employees seek more choices, flexibility and personalisation in how they are rewarded and in their ways of working.

Employers recognise their shortcoming in these key areas. The survey found that only 35% of employers say they provide meaningful choice within their benefit programs, a key element of a consumer-centric approach.

Also, merely 32% say they deliver benefit programs in a way that provides a consumer-grade experience, compared to the global average of 42% and 39% respectively.

Employers not doing enough to measure success
When asked about metrics and measuring the success of talent and rewards programs, the top ROI measurements for employers are related to both cost and people: 68% focus on the total cost, while 48% consider the impact on ability to retain employees.

“However, few organisations take a comprehensive measurement approach,” Wen Wan said. “A comprehensive approach needs to include: total cost, cost of individual programs, and impact on attraction, retention and engagement of employees.”