Are you providing the benefits that your employees value?
Are you providing the benefits your employees value?
In a fast-changing world, it can be hard to keep up with changing employee expectations. In our latest webinar, we discussed our recent research highlighting the disconnect between what employees want and what employers are providing.
“We live in a polycrisis era, where we go from one crisis to another,” explained Julia Radchenko, Health Consulting Leader for Mercer, when setting the context for our latest webinar on the future of benefits. “The last several years have seen businesses existing in a state of constant disruption, from the pandemic to geopolitical pressures to economic turmoil. Twice as many job vacancies are now open compared to before the pandemic, making pay and benefits a major factor in the war for talent.”
Sharing selected findings from Mercer’s Health on Demand 2023 Survey, Julia revealed that a top concern for Singapore employees is their financial future. “Singapore employees are already living in the second-most expensive city. Many of the benefits they want relate to basic human needs for food, housing and transport. Companies might say they don’t have budget to subsidize these, but there are low-hanging opportunities to help. One in two (47%) employees want access to financial tools, but just one in five (22%) have this.”
Benefits for all
“There’s also a big drive to address equality issues,” added Cecilia Tang, a health consultant with Mercer. “Employers are doing more to look at the employee journey and trying to understand what people will value at different stages of their life. Maybe someone is getting ready for retirement or preparing to buy their first home. There is no one-size-fits-all benefits strategy, so it’s about reviewing your benefits philosophy and thinking about the needs and preferences of different employee groups and the message you want to send to them.”
In just 10 years, one-third of the workforce will be made up of Gen Z employees (ages 18 to 25). “These individuals are digital natives and twice as likely to go to social media for medical information,” said Julia. “An employer booklet they can download from the intranet is unlikely to engage them. Despite their general positivity, they also have specific challenges. Many entered the workplace during the pandemic, which was far from optimal, and 97% are at risk of burnout. Their managers and team leaders will have to act not only as recruiters but as guidance counselors, psychologists, mediators and change agents.”
She added, “Other generations might initially resent the extra pressure Gen Z puts on them, so they need to know the demands from this part of the workforce will benefit everyone. Gen Z are the enablers that will change traditional employer relations. To attract them, you will need to rethink everything from office layout to culture and the role of managers.”
Another group found to be in need of particular support was caregivers. “Caregiving is the path of life for 71% of employees globally, although many employees in Singapore do not identify as caregivers as they may view this as an act of duty,” said Julia. “They may not actively prioritize self-care and may be at risk of burnout as they’re not reaching out for support.”
Our finding showed that more than one-third (38%) of caregivers have also experienced financial hardship due to medical expenses, and almost half (46%) have worked while feeling mentally unwell. Nevertheless, work is an important source of social interaction for them, with 62% saying it has a positive impact on their well-being.
One area in which a big gap existed between what employees want and what employers are providing was in reproductive health. Just 15% of employees have access to menopause support, even though 47% say this would be helpful to them and their families. And just 12% have access to fertility support — something 46% of employees would value.
Benefits for healthier societies
A key trend that emerged was the role of benefits in creating healthier societies. “Many conditions were disrupted for early diagnosis during the pandemic, meaning our insurance partners are now seeing more claims for delayed care,” explained Julia. “Employers need to recognize that the unwell have different needs to the rest. Seventy-nine percent of employees who are unwell are not confident they can afford the healthcare they need, compared to just 21% of those who are well.”
Similarly, employees with a below-median income are twice as likely (40%) to say they are not confident they can afford healthcare, compared to 19% of those earning above the median. “Lower earners want help to help themselves. Preventive cancer screenings, apps to find medical care when needed and tools to build mindfulness and resilience were seen as the three most helpful interventions they could receive from their employer.”
Among employers looking to create equal benefits for all, two key trends emerged. As Cecilia observed, “Firstly, we’re seeing employers introduce a flexible framework that applies at all levels and encourages employees to choose based on what they need. Secondly, employers who prefer one set of plans are collapsing two or more job levels every year to create benefits for the entire workforce.”
Benefits for a fast-changing world
The Health on Demand report revealed that employees want to work for organizations with strong social values. Seven out of 10 (69%) want their employers to offer living wages and tackle the cost of living, and one in two employees (51%) cares about environmental sustainability.
“Employees want to be more sustainable but need help. Green benefits could encourage take-up of electric vehicles or use of public transport or provide education on simple measures they and their family can take to contribute to this big agenda,” said Julia.
Balancing human and digital health must also be considered, said Julia. “Although 6% of Singapore employees view the future of digital health as disturbing, just two years ago, that number was close to 40%. Over half (59%) of Singapore employees now view digital health as appealing. Yet when we asked where they go for medical advice, the majority still prefer to see a doctor. Benefits plans need to allow for that human interaction while continuing to talk to employees about the apps and other digital solutions that can complement this.”
Perhaps the biggest challenge of all remains reducing the pressures on employees. The survey results show that two out of five (40%) employees are stressed in their everyday lives, putting nine out of 10 (93%) employees in Singapore at risk of burnout. A poll conducted during the webinar saw the majority of attending employers agree that “benefits are important, but we are not addressing the fundamentals: stress, burnout and workload.”
One in two employees says access to insurance programs that reduce the cost of mental health would be helpful, yet just a quarter (25%) have access to this benefit. Only one in five employees (20%) has access to alternative mental health therapies. “Fortunately, access to mental health services is opening up,” said Cecilia. “In the past, an EAP was one of the few ways to access counselling; now more insurers are including mental health in their insurance outpatient policies so someone can see a psychologist before their problem gets worse.”
“Companies are increasingly using benefits as an expression of company values and addressing society issues through benefits,” concluded Julia. “Instead of viewing wider issues, such as a lack of health infrastructure, as being beyond their corporate control, responsible employers are now stepping up to become part of the solution.”
If you have any questions about the strategies and solutions discussed, please don’t hesitate to contact us. You can also get the full Health on Demand report.
