TRENDS IN ASIA - imercer · The Role of Benefits 26 May 2014 9 Attracting Talent Retaining Talent...
Transcript of TRENDS IN ASIA - imercer · The Role of Benefits 26 May 2014 9 Attracting Talent Retaining Talent...
BENEFITS WEBINARTRENDS IN ASIA
22 MAY 2014
Harrison Tan
Regional Benefits Product Manager
MERCER
Overview
1. Before we begin………
2. Snapshot Survey Survey respondents Benefits Review Benefits – Retention Tool Benefits Cost ‘Alternative’ Benefits
3. Benefits Legislative Updates
4. Benefits Trends Flexible Working Arrangements Leave Health Vehicles
226 May 2014
MERCER
Before we beginCountries covered & approaches
326 May 2014
1 Hour………
5 countries
Pre-webinar snap poll results
Mercer Benefits
Survey Results
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Snapshot SurveyDemographics
426 May 2014
776 respondents25 countries
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Snapshot SurveyDemographics
526 May 2014
14%
26%
19%
41%
Participants by Employee Size Participants by Industry
Energy4%
Manufacturing14%
Technology13%
FMCG & Retail13%
Pharmaceutical/ Life Sciences
9%
Chemical8%
Financial services
7%
Engineering 4%
Others28%
1 – 99 employees
100 – 499 employees
500 – 1500 employees
>1500 employees
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Snapshot SurveyHow often do companies review their benefits?
626 May 2014
70%
25%
5%
Every 1 to 3 years
Every 3 to 5 years
More than 5 years
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73%
46%
35%
32%
30%
18%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Snapshot SurveyWhat benefits are companies reviewing?
726 May 2014
Allowances
Car benefits
Flexible working arrangements
Leave benefits
Health/Medical benefits
Training
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Snapshot SurveyMarket Focus: Indonesia
826 May 2014
19%
6%
75%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Will you change your medical / benefits (outpatient and inpatient) due to the new BPJS / implementation in the upcoming 2015?
No, there will not be any revision to existing medical benefits
Yes, we will decrease the premium cost on employees
Yes, the revised cost of premium will vary by employee level
MERCER
Snapshot SurveyThe Role of Benefits
926 May 2014 9
Attracting Talent
Retaining Talent
Motivating Talent2% 2% 14% 59% 23%
3% 5% 22% 51% 19%
Strongly Disagree
Strongly Disagree Strongly Agree
Strongly Agree
Strongly Disagree Strongly Agree
3% 11% 62% 22%2%
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Snapshot SurveyMarket Focus: China
1026 May 2014
94%
51%
21%
92%
13%
39%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Benefits
Work‐life balance
Career development
Job rotation
Retention bonus
Compensation
What do you think are the 3 most effective ways to retain key talent?
MERCER
Snapshot SurveyEmployee Retention
1126 May 2014
Career DevelopmentAllowancesFlexible working arrangementsLeave benefits
Starting a FamilyAllowancesCar benefitsFlexible working arrangements
Family BuildingFlexible working arrangementsRisk InsuranceSupplementary medical benefits
Pre‐RetirementFlexible working arrangementsRisk InsuranceSupplementary medical benefits
Below 30 years old 30 – <40 years old
40 – <50 years old Above 50 years old
MERCER
Snapshot SurveyBenefits Expenditure
1226 May 2014
19%
18%
14%
24%
20%
15%
16%
24%
24%
17%
20%
18%
13%
20%
24%
45%
54%
32%
39%
42%
49%
49%
47%
24%
38%
47%
44%
55%
51%
42%
23%
24%
31%
27%
25%
27%
25%
22%
32%
29%
24%
28%
27%
21%
25%
9%
3%
16%
6%
10%
7%
7%
6%
16%
11%
6%
7%
5%
7%
5%
4%
1%
7%
3%
2%
1%
3%
2%
4%
5%
2%
3%
1%
1%
4%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Australia
Hong Kong
China
India
Indonesia
Japan
Malaysia
New Zealand
Pakistan
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
0 to10% 10 to 20% 20 to 30% 30 to 40% More than 40%
MERCER
58%
42%
39%
23%
0% 10% 20% 30% 40% 50% 60% 70%
Snapshot SurveyCost Containment Measures
1326 May 2014
Implementing cap and limits on benefits spend
Implementing co‐payment and front end deductibles
Reducing premium costs through pooling and group schemes
Provision of healthy lifestyle benefits and wellness programmes
MERCER
Snapshot Survey“Trendy” Benefits
1426 May 2014
25%
22%
16%
8%7% 6%
31%
19%
22%
4%
12%
4%
1%
23%25%
13%
9%
5% 5%
36%
18%
26%
4%
15%
5%
1%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Gym Fully stockedpantry
Game rooms Nap room Freemassages
Conciergeservices
Access tosocial
networks
No dresscode
Allowemployeesto BYOD
Karokesessions
Overseasincentive trip
Innovationdays
Unlimitedannual leave
20142013
Facilities and Services Rewards ProductivityEmployee Welfare
MERCER
Key Legislative Changes
1526 May 2014
• Changes to the Enterprise Annuity plan
• Revised retirement age
• Increase in age for full EPF contributions
• Increase in CPF contribution rates• Subsidies for Specialist Outpatient Clinics
• Changes in labor code
• Increase in MPF contribution rates
• Increased Philhealth coverage
• Increase in ordinary insurance premium rate
MERCER
FLEXIBILITY & WORK LIFE HARMONY
Telecommuting, Flexible Hours
16
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Snapshot SurveyCountry Focus: Malaysia
1726 May 2014
What measures have you taken to implement Flexible Working Arrangement (FWA) in the Budget 2014 announcement?
50%
15%
3%
32%
0% 10% 20% 30% 40% 50% 60%
Undecided
Compressed work week
Telecommuting
Flexi‐hours
MERCER
Snapshot SurveyCountry Focus: Singapore
1826 May 2014
Is there a policy in place to / re‐employ eligible employees who reach the age of 62?
53%
47% Yes
No
79%
21%
Yes
No
Do you extend similar benefits to re‐employed employees as per / full‐time employees?
MERCER
FlexibilityFlexible Hours
1926 May 2014
35% 36%
53%
27%29%
49%
56% 57%
38%40%
48%44%
67%
34%
20%
50%
79%
62%
46%
15%
35%
51%48%
28%
20%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
CN SG IN ID VN
Chemical
High‐Tech
Consumer
Pharma
All Industries
• Flexible working hours are most commonly offered in SG and IN which tends to follow the same trend as telecommuting.
• Interestingly, Pharma industry leads the way in this practice.
• Companies usually implement such a policy by allowing employees to vary their work schedule around predetermined core working hours.
MERCER
FlexibilityTelecommuting
2026 May 2014
38%
5%
12% 13%
17%
55%
46%
61%
28%
60%
33%
41%38%
9%
4%
28%
50%
38%
6%
19%
37%
32%
44%
11%
25%
0%
10%
20%
30%
40%
50%
60%
70%
CN SG IN ID VN
Chemical
High‐Tech
Consumer
Pharma
All Industries
• There is a notable trend of companies offering telecommuting to facilitate employees in managing personal commitments.
• As expected, high tech companies lead the way when it comes to telecommuting.
MERCER
LEAVE BENEFITSAnnual Leave
21
MERCER
Leave BenefitsChina
1
2226 May 2014
Years of Service
Entitlement
1 12
5 15
10 17
Maximum 20
Years of Service
Entitlement
1 12
5 15
10 17
Maximum 20
Chemical Consumer
High Tech Pharmaceutical
All Industries
Years of Service
Entitlement
1 10
5 15
10 16
Maximum 20
Years of Service
Entitlement
1 12
5 15
10 20
Maximum 20
Years of Service
Entitlement
1 12
5 15
10 19
Maximum 20
• Consumer goods companies have lower starting entitlement
• All industries have similar maximum entitlement
MERCER
Leave BenefitsIndonesia
1
2326 May 2014
Years of Service
Entitlement
1 12
5 14
10 16
Maximum 18
Years of Service
Entitlement
1 12
5 12
10 18
Maximum 20
Chemical Consumer
High Tech Pharmaceutical
All Industries
Years of Service
Entitlement
1 12
5 13
10 15
Maximum 17
Years of Service
Entitlement
1 14
5 16
10 20
Maximum 20
Years of Service
Entitlement
1 12
5 15
10 18
Maximum 20
• Common entitlement when 1st joined
• High Tech has higher entitlement for employees
MERCER
Leave BenefitsSingapore
1
2426 May 2014
Years of Service
Entitlement
1 15
5 18
10 21
Maximum 21
Years of Service
Entitlement
1 15
5 18
10 21
Maximum 24
Chemical Consumer
High Tech Pharmaceutical
All Industries
Years of Service
Entitlement
1 16
5 19
10 20
Maximum 22
Years of Service
Entitlement
1 15
5 18
10 20
Maximum 20
Years of Service
Entitlement
1 15
5 18
10 21
Maximum 23
• Common entitlement when 1st
started
• Leave entitlement are very industry specific
• “Front-Loading” of leave entitlements
MERCER
Leave BenefitsVietnam
1
2526 May 2014
Years of Service
Entitlement
1 15
5 15
10 17
Maximum 20
Years of Service
Entitlement
1 15
5 15
10 16
Maximum 20
Chemical Consumer
High Tech Pharmaceutical
All Industries
Years of Service
Entitlement
1 15
5 15
10 16
Maximum 20
Years of Service
Entitlement
1 14
5 15
10 17
Maximum 20
Years of Service
Entitlement
1 15
5 16
10 17
Maximum 21
• Generally, median entitlement for 1 to 5th year is similar
• The maximum entitlement is capped at 20 days.
• Entitlement are fairly similar across industries
MERCER
HEALTH BENEFITSOutpatient, Hospitalization
26
MERCER
Health BenefitsChina
2726 May 2014
79%
86%
83%
75%
72%
78%
86%
82%
75%
72%
65%
70%
75%
80%
85%
90%
Chemical High‐Tech Consumer Pharma All Industries
Provision to dependents Claim sharing
79%86%
81%75%
71%78%
86%80%
75%71%
0%10%20%30%40%50%60%70%80%90%100%
Chemical High‐Tech Consumer Pharma All Industries
Provision to dependents Claim sharing
Outpatient Benefits
Annual Limit All Industries Chemical Consumer High-Tech Pharma
Individual 10,000 10,000 20,000 10,000 10,000
Dependent 10,000 10,000 10,000 10,000 10,000
Hospital Benefits
Annual Limit All Industries Chemical Consumer High-Tech Pharma
Individual 20,000 20,000 50,000 20,000 15,000
Dependent 15,000 20,000 10,000 10,000 15,000
Outpatient Benefits Hospital Benefits
• There is industry differentiation in terms of dependent coverage and co-payment
MERCER
Health BenefitsIndia
2826 May 2014
Group Mediclaim Insurance
Annual Limit All Industries Chemical Consumer High-Tech Pharma
Individual 200,000 * * 250,000.00 *
Family floater 300,000.00 350,000.00 300,000.00 300,000.00 200,000.00
82%
99% 96%
85%
95%
18%24%
13% 15% 16%
6%
47%
8%15%
27%
0%10%20%30%40%50%60%70%80%90%100%
Chemical High-Tech Consumer Pharma All Industries
Provision to dependents Premium Sharing Claim Sharing
• Across all the various industries, dependent coverage is high
• The use of family floater for Group MediclaimInsurance is more common than individual limits
MERCER 2926 May 2014
Health BenefitsIndonesia
92% 96% 91% 94%
0%5%
0% 3% 2%
27%21% 19%
26%19%
0%10%20%30%40%50%60%70%80%90%100%
Chemical High‐Tech Consumer Pharma All Industries
Provision to dependents Premium Sharing Claim Sharing
96%87%
96% 91% 94%
4% 5% 2% 3% 3%9% 5% 4% 3% 6%
0%10%20%30%40%50%60%70%80%90%100%
Chemical High‐Tech Consumer Pharma All Industries
Provision to dependents Premium Sharing Claim Sharing
Outpatient Benefits
Annual Limit All Industries Chemical Consumer High-Tech Pharma
Individual (‘000) 5,100 4,400 4,800 6,500 4,880
Dependent (‘000) 5,000 4,000 4,800 5,750 4,800
Family Limit (‘000) 8,000 11,040 7,500 12,500 6,750
Hospital Benefits
Employee All Industries Chemical Consumer High-Tech Pharma
Room & Board 500,000 540,000 500,000 600,000 400,000
Max number of days 150 120 365 120 270
Dependent All Industries Chemical Consumer High-Tech Pharma
Room & Board 500,000 500,000 500,000 600,000 400,000
Max number of days 180 120 365 120 270
Outpatient Benefits Hospital Benefits
MERCER
Health BenefitsSingapore
3026 May 2014
68%76%
59%
82%
67%
5%10%
4%11%
7%
23%17% 15% 14%
18%
0%10%20%30%40%50%60%70%80%90%
Chemical High‐Tech Consumer Pharma All Industries
Provision to dependents Premium Sharing Claim Sharing
55%
85%
63%
75%68%
23%27% 30%
36%
21%
0%4% 7%
0%7%
0%10%20%30%40%50%60%70%80%90%
Chemical High‐Tech Consumer Pharma All Industries
Provision to dependents Premium Sharing Claim Sharing
Outpatient Benefits
Annual Limit All Industries Chemical Consumer High-Tech Pharma
Individual 1,388 2,700 * 1,200 1,000
Dependent 700 * * 600 180
Family Limit 1,500 1,083 2,590 1,500 1,500
Hospital Benefits
(Employee) All Industries Chemical Consumer High-Tech Pharma
Room & Board 290 280 295 300 265
Max number of days 120 120 120 120 120
Outpatient Benefits Hospital Benefits
MERCER
Health BenefitsVietnam
3126 May 2014
42%
55%52%
41%44%
17%
7%
0% 0%4%
0% 0% 0% 0% 2%
0%
10%
20%
30%
40%
50%
60%
Chemical High‐Tech Consumer Pharma All Industries
Provision to dependents Premium Sharing Claim Sharing
46%
52%56%
44% 45%
17%
7%4%
0%5%
0% 0% 0% 0% 0%0%
10%
20%
30%
40%
50%
60%
Chemical High‐Tech Consumer Pharma All Industries
Provision to dependents Premium Sharing Claim Sharing
Outpatient Benefits
Annual Limit All Industries Chemical Consumer High-Tech Pharma
Individual (‘000) 9,175 9,000 7,500 10,359 8,420
Dependent (‘000) 8,440 6,315 7,000 10,500 6,215
Family Limit (‘000) 10,500 * * 10,359 *
Hospital Benefits
(Employee) All Industries Chemical Consumer High-Tech Pharma
Room & Board (‘000) 3,150 3,054 3,000 3,500 3,158
Max number of days 60 60 60 60 60
Dependent All Industries Chemical Consumer High-Tech Pharma
Room & Board (‘000) 3,150 2,625 3,000 5,200 3,000
Max number of days 60 60 60 60 60
Outpatient Benefits Hospital Benefits
MERCER
VEHICLE BENEFITSCompany car, Car allowance
32
MERCER
Snapshot SurveyCountry Focus: Malaysia
3326 May 2014
Are there any benefits policy amendments / made in light of the recent price hike for fuel?
5%
9%
86%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
No amendments
Increment of existing allowances
New provision of allowances
MERCER
Vehicle BenefitsChina
3426 May 2014
23%
33%
25%
36%
27%
14%16%
5%2%
11%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Chemical High‐Tech Consumer Pharma All Industries
Top Management Management
65%
31%
80% 79%
57%
19%12%
4%13% 11%
0%10%20%30%40%50%60%70%80%90%
Chemical High‐Tech Consumer Pharma All Industries
Top Management Management
Car allowance (Sales)Industry Top Management Management Professional
Chemical 3,500 2,000 2,000
High-Tech 10,000 4,968 5,000
Consumer 10,000 1,000 3,000
Pharma 5,714 3,240 1,440
All Industries 4,400 2,500 1,800
Car allowance (Non-Sales)Industry Top Management Management Professional
Chemical 5,500 2,700 *
High-Tech 10,000 5,000 5,000
Consumer 7,700 1,000 *
Pharma 6,000 1,500 *
All Industries 6,000 2,000 2,800
Provision of Company Car (Sales) Provision of Company Car (Non-Sales)
• The provision of car is very prevalent to top management employees.• Popular car models – Buick GL8, Audi A6, Toyota Camry
MERCER
Vehicle BenefitsIndia
3526 May 2014
67%
25%
55%
38% 41%
60%
24%
50%
33% 36%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Chemical High‐Tech Consumer Pharma All Industries
Top Management Management
Car allowance (Sales)
Industry Head of sales Senior Sales Management
Sales Management
Sales Professional
Chemical 38,083 27,500 19,583 *
High-Tech * * * *
Consumer * * * *
Pharma * * * *
All Industries 34,677 24,200 16,500 12,900
80%
52%
78% 77%
66%
53%
42%
63%54%
49%
0%10%20%30%40%50%60%70%80%90%
Chemical High‐Tech Consumer Pharma All Industries
Top Management Management
Car allowance (Non-Sales)
Industry Head of Organisation
Function Heads
Senior Management Management Professionals
Chemical 48,042 31,542 30,000 19,583 *
High-Tech * * * * *
Consumer * * * * *
Pharma * * * * *
All Industries 53,375 36,792 25,000 19,583 17,375
Provision of Company Car (Sales) Provision of Company Car (Non-Sales)
• The provision of car is prevalent across industries.• Popular car models – BMW 3 and 5 Series, Ford Fiesta, Volkswagen Polo
MERCER
Vehicle BenefitsIndonesia
3626 May 2014
Car allowance (Sales)
Industry Head of sales Senior Sales Management
Sales Management
Sales Professional
Chemical 11,000,000 9,150,000 6,250,000 4,000,000
High-Tech 6,000,000 7,000,000 4,667,000 4,200,000
Consumer * 8,250,000 5,200,000 *
Pharma 8,100,000 6,175,000 5,000,000 2,000,000
All Industries 8,100,000 7,000,000 5,000,000 4,000,000
Car allowance (Non-Sales)
Industry Head of Organisation
Function Heads
Senior Management Management Professionals
Chemical 10,000,000 12,000,000 8,000,000 6,000,000 2,537,000
High-Tech 7,500,000 8,042,000 6,333,000 4,500,000 2,500,000
Consumer 9,150,000 9,333,333 7,500,000 5,300,000 3,000,000
Pharma 12,350,000 9,156,000 7,000,000 5,000,000 3,372,000
All Industries 10,000,000 8,833,000 7,000,000 4,900,000 3,000,000
28%
19%
39%
58%
30%
46%
14%
49%
67%
35%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Chemical High‐Tech Consumer Pharma All Industries
Top Management Management
60%
29%
67% 68%
57%52%
8%
32%
63%
35%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Chemical High‐Tech Consumer Pharma All Industries
Top Management Management
Provision of Company Car (Sales) Provision of Company Car (Non-Sales)
• There is a noticeable difference between the high tech and other industries in vehicle benefit – High Tech tends to provide in the form of allowances
• Popular car brands – Toyota, Honda, Nissan (models varies widely)
MERCER
Vehicle BenefitsSingapore
3726 May 2014
Car allowance (Sales)
Industry Head of sales Senior Sales Management
Sales Management
Sales Professional
Chemical * 1,500 1,500 1,000
High-Tech 2,400 1,700 1,300 1,000
Consumer * 1,800 1,250 1,000
Pharma 1,600 1,400 1,310 1,200
All Industries 1,917 1,500 1,200 1,000
Car allowance (Non-Sales)
Industry Head of Organisation
Function Heads
Senior Management Management Professionals
Chemical 2,400 2,300 1,900 1,500 *
High-Tech 3,000 2,200 1,300 1,000 1,000
Consumer 3,500 2,800 2,000 1,400 *
Pharma 3,100 2,400 2,000 1,350 1,325
All Industries 3,000 2,300 1,800 1,200 900
6%
2%
5%
7%
3%
5%
0%
4%
0%
3%
0%
1%
2%
3%
4%
5%
6%
7%
8%
Chemical High‐Tech Consumer Pharma All Industries
Top Management Management
11%
6%
33%
14%
21%
10%
3%
16%
7%4%
0%
5%
10%
15%
20%
25%
30%
35%
Chemical High‐Tech Consumer Pharma All Industries
Top Management Management
Provision of Company Car (Sales) Provision of Company Car (Non-Sales)
• Car allowance is the most common form of vehicle benefit for top management employees
• Popular Car models – Mercedes-Benz (S Series, E class), Lexus ES 300, Audi (A4, A7), BMW (5, 7 series)
MERCER
Vehicle BenefitsVietnam
3826 May 2014
Car allowance (Sales)
Industry Head of sales Senior Sales Management
Sales Management
Sales Professional
Chemical * * * *
High-Tech * * 14,295,000 *
Consumer * * * *
Pharma * * * *
All Industries 18,210,000 15,000,000 15,000,000 15,700,000
Car allowance (Non-Sales)
Industry Head of Organisation
Function Heads
Senior Management Management Professionals
Chemical * * * * *
High-Tech * 16,426,500 12,000,000 * *
Consumer * 20,833,000 * 12,500,000 *
Pharma * 30,700,000 * * *
All Industries 41,754,000 21,000,000 15,000,000 15,787,000 *
42%
6%
65%
33%29%
38%
3%
40%
15% 16%
0%
10%
20%
30%
40%
50%
60%
70%
Chemical High‐Tech Consumer Pharma All Industries
Top Management Management
75%
28%
80%
58%52%
21%
3%
20% 23%15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Chemical High‐Tech Consumer Pharma All Industries
Top Management Management
Provision of Company Car (Sales) Provision of Company Car (Non-Sales)
• Car provision is the typical practice for senior employees• Popular cars brands– Toyota, Ford, Mercedes-Benz
MERCER
Employer
• Business analysis, trends and themes
• Executive interviews & surveys
• Workforce profile and projections
Employee
• Employee surveys
• Preference analysis
• Engagement data & analysis
• Communication audit
External
• Competitive positioning
• Emerging trends• Environmental
developments• Projected
changes in labour markets
Costs
• Cost trends• Cost & business
performance projections
• Cost savings opportunities
• Risk management
39
(Re)-Design Plans
• Aligned to Strategy
Measure and Manage
Delivery• Communication• Administration• Financing
Prioritize change agenda
Develop implementation plans
Develop benefits strategy
*Analysis: The four perspectives
Communication and buy-in from global and local management
Inventory of current practices
Analysis of current position*
What do you do with all this information? The ideal process…..
MERCER 40
What do you do with all this information?The first step is to know where you stand……..
Prevalence comparison
Considers:– Trends, Statistics– Plan design– Median and quartile comparison– Prevalence
Advantages:– See how your individual benefits
compare to the market – Justify decisions about changes in
plan design
Value-based comparison
Considers:– Plan design only– An apples-to-apples comparison of
benefits plans
Advantages:– Effectively compare benefits that
have different plan designs– Justify decisions about changes in
plans design for one benefit or your benefits offering as a whole
– Identify gaps in your benefits plans for your different employee groups
MERCER 41
Mercer (Singapore) Pte Ltd (1978 02499E)