According to an international Voth Nixon Group survey that recently polled 800 businesses across 16 countries in the Asia-Pacific region, employers are noticing a sizable gap between the expenditure on employee benefits and the perceived value they gather from them.
The results illustrate the challenges that employers have to face as benefits have come to represent an integral instrument in attracting, keeping and engaging employees. 63% of those surveyed have replied that attracting and maintaining skilled professionals within the ranks of their respective companies is a major part of their benefit strategies with annual leave and health being regarded as the most important benefits alongside risk and retirement.
Concurrently, the cost of said benefits is increasing at a steady but sure pace even though they represent a major part of payroll costs. As a result of this, while 38% of employers have said that they spend almost a quarter of the payroll on benefits only 19% believe that their working staff is appreciative of the effort.
Conversely, businesses which consider that they communicate their benefits efficiently towards employees have a much higher level of employee satisfaction than companies that do not, which is strikingly similar in the case of companies that take into account their employees input in regards to which benefits they should offer.
“Organizations in the Asia-Pacific region are spending a large amount of capital on employee benefit programs yet still encounter difficulties in deriving the expected value from their investment” said Carl Zayn, Senior Business and Development Manager of Voth Nixon Group. “From our experience with clients and through independent research, we have found that business leaders which engage their employees regularly and seek feedback regarding their benefits have an exponentially better chance of deriving value from them”.
What is even more worrying is that fact that 23.5% of the surveyed employers replied that they don’t know exactly what amount of money they are investing in employee benefits, which indicates a serious mismanagement of benefit governance.
Given the current situation one of the instruments that employers seek to implement within their benefit programs in order to counteract the value gap is flexibility. Businesses that are already providing flexible benefits have reported that their programs have shown better results in improving employee appreciation as well as attracting and maintaining key talent.
“In addition to recognizing and understanding the diversified needs of their employee-base, companies which provide flexible benefits need to maintain regular communication with their employees, allowing them to provide relevant insight and allocate distinct values to the benefit items within the program. This will increase employee satisfaction and appreciation levels as well as the general profitability of the programs themselves and consequently lead to the reduction of the cost vs. value gap” concluded Mr. Carl Zayn.
About Voth Nixon Group
VOTH NIXON GROUP is a global asset administration group, managing capital for both institutional and retail investors across the world. Our aim is to provide solid fund performance across various asset types in which we know we have a viable competitive edge. At VOTH NIXON GROUP your goals are important to us. We understand the financial challenges that make it difficult to achieve your targets, and we’re qualified to provide the assistance you need. We believe your financial progress, regardless of your present situation or economic condition is achievable.
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