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

MERCER

Snapshot SurveyDemographics

426 May 2014

776 respondents25 countries

MERCER

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

MERCER

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

MERCER

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

MERCER

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%

MERCER

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

MERCER

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


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


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


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%


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


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


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%



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%



Outpatient Benefits


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



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%



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%



Outpatient Benefits


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



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%



46%

52%56%

44% 45%

17%

7%4%

0%5%

0% 0% 0% 0% 0%0%

10%

20%

30%

40%

50%

60%



Outpatient Benefits


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


Dependent All Industries Chemical Consumer High-Tech Pharma

Room & Board (‘000) 3,150 2,625 3,000 5,200 3,000



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%


Top Management Management

65%

31%

80% 79%

57%

19%12%

4%13% 11%

0%10%20%30%40%50%60%70%80%90%



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%



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%



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


• 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



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



Function Heads


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%



60%

29%

67% 68%

57%52%

8%

32%

63%

35%

0%

10%

20%

30%

40%

50%

60%

70%

80%




• 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



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



Function Heads


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%



11%

6%

33%

14%

21%

10%

3%

16%

7%4%

0%

5%

10%

15%

20%

25%

30%

35%




• 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



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



Function Heads


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%



75%

28%

80%

58%52%

21%

3%

20% 23%15%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%




• 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)

trends in asia - imercer · the role of benefits 26 may 2014 9 attracting talent retaining talent...

Documents