2014-benefits-trends-in-asia (1).pdf

7/25/2019 2014-benefits-trends-in-asia (1).pdf

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2/42

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. Benefi ts Trends

Flexible Working Arrangements

Leave

Health

Vehicles

226 May 2014


3/42

MERCER

Before we begin

Countries covered & approaches

326 May 2014

1 Hour

5 countries

Pre-webinar snap poll

results

MercerBenefits

Survey Results


4/42

MERCER

Snapshot Survey

Demographics

426 May 2014

776respondents

25 countries


5/42

MERCER

Snapshot Survey

Demographics

526 May 2014

14%

26%

19%

41%

ParticipantsbyEmployeeSize ParticipantsbyIndustry

Energy4%

Manufacturing14%

Technology13%

FMCG & Retail13%

Pharmaceutical/Life Sciences

9%

Chemical8%

Financialservices

7%

Engineering4%

Others28%

1 99 employees

100 499 employees

500 1500 employees

>1500 employees


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MERCER

Snapshot Survey

How often do companies review their benefits?

626 May 2014

70%

25%

5%

Every1to3years

Every3to5years

Morethan5years


7/42

MERCER

73%

46%

35%

32%

30%

18%

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

Snapshot Survey

What benefits are companies reviewing?

726 May 2014

Allowances

Carbenefits

Flexibleworking

arrangements

Leavebenefits

Health/Medicalbenefits

Training


8/42

MERCER

Snapshot Survey

Market Focus: Indonesia

826 May 2014

19%

6%

75%

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

Willyouchangeyourmedical/benefits(outpatientandinpatient)duetothenewBPJS/

implementationintheupcoming2015?

No,therewillnotbeanyrevisiontoexistingmedicalbenefits

Yes,wewilldecreasethepremiumcostonemployees

Yes,therevisedcostofpremiumwillvarybyemployeelevel


9/42

MERCER

Snapshot Survey

The Role of Benefits

926 May 2014 9

Attracting Talent

Retaining Talent

Motivating Talent

2% 2% 14% 59% 23%

3% 5% 22% 51% 19%

StronglyDisagree

StronglyDisagree StronglyAgree

StronglyAgree

StronglyDisagree StronglyAgree

3% 11% 62% 22%2%


10/42

MERCER

Snapshot Survey

Market Focus: China

1026 May 2014

94%

51%

21%

92%

13%

39%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Benefits

Worklifebalance

Careerdevelopment

Jobrotation

Retentionbonus

Compensation

Whatdoyouthinkarethe3mosteffectivewaystoretainkeytalent?


11/42

MERCER

Snapshot Survey

Employee Retention

1126 May 2014

CareerDevelopmentAllowances

Flexibleworkingarrangements

Leavebenefits

StartingaFamilyAllowances

Carbenefits

Flexibleworkingarrangements

FamilyBuildingFlexibleworkingarrangements

RiskInsurance

Supplementarymedicalbenefits

PreRetirementFlexibleworkingarrangements

RiskInsurance

Supplementarymedicalbenefits

Below30yearsold 30


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MERCER

Snapshot Survey

Benefits 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

HongKong

China

India

Indonesia

Japan

Malaysia

NewZealand

Pakistan

Philippines

Singapore

SouthKorea

Taiwan

Thailand

Vietnam

0 to10% 10 to 20% 20 to 30% 30 to 40% More than 40%


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MERCER

58%

42%

39%

23%

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

Snapshot Survey

Cost Containment Measures

1326 May 2014

Implementingcapandlimitsonbenefitsspend

Implementingcopaymentandfrontenddeductibles

Reducingpremium

costs

through

pooling

and

group

schemes

Provisionofhealthylifestylebenefitsandwellnessprogrammes


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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


15/42

MERCER

Key Legislative Changes

1526 May 2014

ChangestotheEnterpriseAnnuityplan

Revisedretirementage

IncreaseinageforfullEPFcontributions

IncreaseinCPFcontributionrates

SubsidiesforSpecialistOutpatientClinics

Changesinlaborcode

IncreaseinMPFcontributionrates

IncreasedPhilhealth

coverage

Increaseinordinaryinsurancepremiumrate


16/42

MERCER

FLEXIBILITY & WORK LIFEHARMONY

Telecommuting, Flexible Hours

16


17/42


18/42

MERCER

Snapshot SurveyCountry Focus: Singapore

1826 May 2014

Isthereapolicyinplaceto/reemploy

eligibleemployeeswhoreachtheageof

62?

53%

47% Yes

No

79%

21%

Yes

No

Doyouextendsimilarbenefitstoreemployed

employeesasper/fulltimeemployees?


19/42

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

HighTech

Consumer

Pharma

AllIndustries

Flexible working hours are most commonly offered in SG and IN which tends to follow the same trendas telecommuting.

Interestingly, Pharma industry leads the way in this practice.

Companies usually implement such a policy by allowing employees to vary their work schedule aroundpredetermined core working hours.


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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

HighTech

Consumer

Pharma

AllIndustries

There is a notable trend of companies offering telecommuting to facilitate employees in managingpersonal commitments.

As expected, high tech companies lead the way when it comes to telecommuting.


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MERCER

LEAVE BENEFITSAnnual Leave

21


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MERCER

Leave BenefitsChina

12226 May 2014

Yearsof

Service

Entitlement

1 12

5 15

10 17

Maximum 20

Yearsof

Service

Entitlement

1 12

5 15

10 17

Maximum 20

Chemical Consumer

High Tech Pharmaceutical

Al l Industries

Yearsof

Service

Entitlement

1 10

5 15

10 16

Maximum 20

Yearsof

Service

Entitlement

1 12

5 15

10 20

Maximum 20

Yearsof

Service

Entitlement

1 12

5 15

10 19

Maximum 20

Consumergoods

companies

have lower

starting

entitlement

All industrieshave similar

maximum

entitlement


23/42

MERCER

Leave BenefitsIndonesia

12326 May 2014

Yearsof

Service

Entitlement

1 12

5 14

10 16

Maximum 18

Yearsof

Service

Entitlement

1 12

5 12

10 18

Maximum 20

Chemical Consumer


Al l Industries

Yearsof

Service

Entitlement

1 12

5 13

10 15

Maximum 17

Yearsof

Service

Entitlement

1 14

5 16

10 20

Maximum 20

Yearsof

Service

Entitlement

1 12

5 15

10 18

Maximum 20

Common

entitlement

when 1stjoined

High Tech has

higher

entitlement for

employees


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MERCER

Leave BenefitsSingapore

12426 May 2014

Yearsof

Service

Entitlement

1 15

5 18

10 21

Maximum 21

Yearsof

Service

Entitlement

1 15

5 18

10 21

Maximum 24

Chemical Consumer


Al l Industries

Yearsof

Service

Entitlement

1 16

5 19

10 20

Maximum 22

Yearsof

Service

Entitlement

1 15

5 18

10 20

Maximum 20

Yearsof

Service

Entitlement

1 15

5 18

10 21

Maximum 23

Common

entitlement

when 1ststarted

Leave

entitlement

are very

industry

specific

Front-

Loading of

leave

entitlements


25/42

MERCER

Leave BenefitsVietnam

12526 May 2014

Yearsof

Service

Entitlement

1 15

5 15

10 17

Maximum 20

Yearsof

Service

Entitlement

1 15

5 15

10 16

Maximum 20

Chemical Consumer


Al l Industries

Yearsof

Service

Entitlement

1 15

5 15

10 16

Maximum 20

Yearsof

Service

Entitlement

1 14

5 15

10 17

Maximum 20

Yearsof

Service

Entitlement

1 15

5 16

10 17

Maximum 21

Generally,median

entitlement for

1 to 5th year is

similar

The maximum

entitlement iscapped at 20

days.

Entitlement

are fairly

similar across

industries


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MERCER

HEALTH BENEFITSOutpatient, Hospitalization

26


27/42

MERCER

Health BenefitsChina

2726 May 2014

79%

86%

83%

75%

72%

78%

86%

82%

75%

72%

65%

70%

75%

80%

85%

90%

Chemical HighTech Consumer Pharma AllIndustries

Provisiontodependents Claimsharing

79%

86%81%

75%71%

78%

86%80%

75%71%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Provisiontodependents Claimsharing

Outpatient Benefits

Annual LimitAll

IndustriesChemical 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 LimitAll


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


28/42

MERCER

Health BenefitsIndia

2826 May 2014

Group Mediclaim Insurance

Annual LimitAll


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

Provisiontodependents PremiumSharing ClaimSharing

Across all the variousindustries, dependent

coverage is high

The use of family floater

for Group Mediclaim

Insurance is morecommon than individual

limits


29/42

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

Annual LimitAll


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

EmployeeAll


Room & Board 500,000 540,000 500,000 600,000 400,000

Max number of

days150 120 365 120 270

DependentAll


Room & Board 500,000 500,000 500,000 600,000 400,000

Max number of

days180 120 365 120 270



30/42

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%


Provisiontodependen ts Prem iumSharing ClaimSharing

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%


Provisiontodependent s P remiumSharing ClaimSharing

Outpatient Benefits

Annual LimitAll


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


Room & Board 290 280 295 300 265

Max number of

days120 120 120 120 120



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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%


Provisiontodepe nde nts Pre miumSharing ClaimSharing

46%

52%56%

44% 45%

17%

7%4%

0%

5%

0% 0% 0% 0% 0%

0%

10%

20%

30%

40%

50%

60%


Provisiontodependent s P remiumSharing ClaimSharing

Outpatient Benefits

Annual LimitAll


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


Room & Board

(000)3,150 3,054 3,000 3,500 3,158

Max number of

days60 60 60 60 60

DependentAll


Room & Board

(000)3,150 2,625 3,000 5,200 3,000

Max number of

days60 60 60 60 60



32/42

MERCER

VEHICLE BENEFITSCompany car, Car allowance

32


33/42

MERCER

Snapshot SurveyCountry Focus: Malaysia

3326 May 2014

Arethereanybenefitspolicyamendments/madeinlightoftherecentpricehikefor

fuel?

5%

9%

86%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Noamendments

Incrementofexistingallowances

Newprovisionofallowances


34/42


35/42

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%


TopM anagement M anag ement

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 Industr ies 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%


TopManag ement Management

Car allowance (Non-Sales)Industry

Head of

Organisation

Function

Heads

Senior

ManagementManagement Professionals

Chemical 48,042 31,542 30,000 19,583 *

High-Tech * * * * *

Consumer * * * * *

Pharma * * * * *

All Industr ies 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


36/42

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 Industr ies 8,100,000 7,000,000 5,000,000 4,000,000

Car allowance (Non-Sales)Industry

Head of

Organisation

Function

Heads

Senior


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 Industr ies 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%


TopManageme nt Manage ment

60%

29%

67% 68%

57%52%

8%

32%

63%

35%

0%

10%

20%

30%

40%

50%

60%

70%

80%


TopManageme nt Manageme nt


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)


37/42

MERCER

Vehicle BenefitsSingapore

3726 May 2014

Car allowance (Sales)

Industry Head of salesSenior 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 Industr ies 1,917 1,500 1,200 1,000

Car allowance (Non-Sales)

IndustryHead of

Organisation

Function

Heads

Senior


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 Industr ies 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%


TopManagement Management

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)


38/42

MERCER

Vehicle BenefitsVietnam

3826 May 2014

Car allowance (Sales)

Industry Head of salesSenior Sales

Management

Sales

Management

Sales

Professional

Chemical * * * *

High-Tech * * 14,295,000 *

Consumer * * * *

Pharma * * * *

All Industr ies 18,210,000 15,000,000 15,000,000 15,700,000

Car allowance (Non-Sales)

IndustryHead of

Organisation

Function

Heads

Senior


Chemical * * * * *

High-Tech * 16,426,500 12,000,000 * *

Consumer * 20,833,000 * 12,500,000 *

Pharma * 30,700,000 * * *

All Industr ies 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


39/42

MERCER

Employer

Businessanalysis, trendsand themes

Executive

interviews &surveys

Workforceprofile andprojections

Employee

Employeesurveys

Preferenceanalysis

Engagementdata & analysis

Communicationaudit

External

Competitivepositioning

Emerging trends

Environmental

developments Projected

changes inlabour markets

Costs

Cost trends

Cost & businessperformanceprojections

Cost savingsopportunities

Riskmanagement

39

(Re)-Design Plans

Aligned to Strategy

Measure and Manage

Delivery

Communication

Administration

Financing

Prioritize

changeagenda

Develop

implementationplans

Develop

benefitsstrategy

*Analysis: The four perspectives

Communication and buy-in from global and local management

Inventory

of currentpractices

Analysis of

currentposition*

What do you do with all this information?The ideal process..


40/42

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 inplan design

Value-based comparison

Considers:

Plan design only

An apples-to-apples comparison ofbenefits plans

Advantages:

Effectively compare benefits thathave different plan designs

Justify decisions about changes inplans design for one benefit or yourbenefits offering as a whole

Identify gaps in your benefits plansfor your different employee groups


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MERCER 41


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Mercer (Singapore) Pte Ltd (1978 02499E)

Documents

2014-benefits-trends-in-asia (1).pdf