2016 BENEFITS UNDER THE LENS: IDENTIFYING … MALAYSIA PHILIPPINES ... SOCIAL MEDIA TWEET ... to sell by either Marsh or Mercer to provide any regulated …

DECEMBER 7, 2016

Liana AttardPrincipal, Asia, Middle East and Africa Consulting Leader

Heena SethiSenior Associate, Asia Pacific, Regional Consulting

2016 BENEFITS UNDER THE LENS:IDENTIFYING THE MISSING LINK

© MERCER MARSH BENEFITS LLC 2016 2

AG E N D A

S U RV E Y O V E RV I E W &KEY F INDINGS

C U R R E N T P R AC T I C E S

MIS S ING L INKS

BRIDGING THE GAPS

Employers are looking for ways todifferentiate themselves to gain acompetitive advantage in the war for talent.

What methods are companies using todevelop their benefits strategy?

Why are employee benefits programs in Asianot producing results companies are lookingfor?

Mercer Marsh Benefits recommendations fordeveloping an effective strategy.


F O C US AR E A S

What canemployers do tobridge the gapsto improve thevalue of their

benefits?

What arethe “missing

links”?

What evolvingrole does

benefits playwithin the total

rewardsframework?

What does a bestpractice framework

look like?


S URV E Y D EM O G R AP H I C S

12COUNTRIES

SOUTHKOREA TAIWAN

INDIA INDONESIA

JAPAN MALAYSIA

PHILIPPINES SINGAPORE

CHINA HONG KONG

THAILAND VIETNAM

100+COMPANIES

1 TO 25,000EMPLOYEE

HEADCOUNT

HRD, CEO, VP

654PARTICIPANTS

36INDUSTRIES

PARTICIPANTPROFILES


K E Y F I N D I N G S


2

K E Y C H A L L E N G E S

3 21% average turnover over 5 years

1 18% annual cost increase for 5+ years

2 37% engaged 65% felt company doesn’t care


T H E R O L E O F B E N E F I T S

1 Increases employee satisfaction/appreciation

2 Helps with talent attraction and retention

3 Creates value under a total rewards strategy

WH AT I S TH E R OLE OF BE NE FITSIN YOUR ORGANIZAT IO N?

HOW IMPORTANT ARE BENEF ITSTO YOUR ORGANIZAT IO N ?

61%


E V O LV I N G T O TAL R E WAR D S S T R AT E G YT H E I N C R E A S I N G I M P O R TA N C E O F B E N E F I T S

DESIG

ND

ELIV

ER

Reward elements areinterdependent

Think holistically

Work/lifeCareers

Pay BenefitsMoney

Draw on multipleperspectives

Use facts and analytical tools tomake better rewards decisions

Employer Employee

Cost External

Measure Integrate

Monitor Personalize

Delivery

Monitor business, HRoutcomes, and service

Consider outcomesbefore design

Improve workforce performance usingdata and analytics to drive productivity,

budget and profit

Attraction Engagement

Retention Results

Financing

Identify protocols for deploymentof Total Rewards strategy;

centralized and locally

Policies &Reporting

DecisionMaking

RegulatoryCompliance

Evolving &Dynamic

Communicate toincrease reward value

Craft a story with acompelling employee

proposition

Online Statements

Personalize CompanyWide


T H E F O U R P I L L A R S O F B E S T P R A C T I C E

B R AN D I N G &C O M M U N I C AT I O N S

D ATA &AN ALY T I C S

D I F F E R E N T I AT I O N& I N N O VAT I O N

AD APTAB IL IT Y,S U S TAI N AB I L I T Y

& AF F O R D A B I L I T Y

The Benefits Under the Lens Survey takes a look inside the current benefitpractices of companies across Asia and outlines the key to a best-practice

employee benefits framework:

© MERCER MARSH BENEFITS LLC 2016 10© MERCER MARSH BENEFITS LLC 2016 10

PILLAR 1Adaptabi l i ty, sustainabi l i tyand affordabi l i tyMeeting the changing needs of the workforcein Asia’s fast-paced economy and dynamicenvironment.


D E S I G N I N G AN D E VAL U AT I N G A B E N E F I T SP R O G R AM

How do you identify and meet the changing needs of theworkforce?

What data are you using to assist with developing,designing and refining benefits programs?

What data limitations are you facing in assisting withstructuring benefits?

82%

B E N C H M AR K I N GS T U D Y

86%

E M P L O Y E EB E N C H M AR K S

66%

AVAI L A B IL I T YO F D ATA


AR E Y O U R B E N EF I T S W O R K I N G F O R Y O U ?

B E N E F I T M A N A G E M E N T M E A S U R E SA D O P T E D B Y E M P L O Y E R S

CHALLENGES

81%Unable toidentify returnon investment

80%Financial andbudgetlimitation

81%Have difficultybalancing costsand competitivebenefits

70%Have nodecision makingauthority

R E A C T I O N A R Y INSURER NEGOTIATION | DESIGN CUT | REMARKETING 48%*

P R O A C T I V I T Y FULLY INTEGRATED TARGETED WELLNESS PROGRAM | VENDORMANAGEMENT | CONSUMERISM 5%**

*2016 Benefits Trends in Asia Pacific Survey

**2013 Mercer Marsh Benefits Total Health & Choice Survey

© MERCER MARSH BENEFITS LLC 2016 132016 APAC Benefits Pulse Survey

Reducing PremiumCosts Through Pooling

& Group Schemes

E M P L O Y E R C O S T M AN A G E M E N T P R AC T I C E S

Implementing Caps& Limits On

Benefits Spend

Provision Of HealthyLifestyle Benefits &Wellness Programs

Implementing Co-payment & Front End

Deductibles

RANK/YEAR

2016 1 2 2 4

2015 1 3 2 4

2014 1 3 2 4


PILLAR 1Do your benefit programs meet thechanging needs of your workforce?


PILLAR 2Differentiat ion andInnovationUsing benefits to attract and retain talent.


W H AT D O E S I T M E AN T O Y O U ?

How do you differentiate benefits?

3%

29%

32%

41%

77%

Others

Branding

Culture

Unique benefits

Comprehensiveness of benefitspackage

of employers define differentiation as offeringcomprehensive benefits packages.77%

4%

58%

61%

70%

80%

Our organization doesn’t feel it isimportant

Promote employee valueproposition

Support total rewards strategy

Increase employee engagement

Talent attraction and retention

Why does your organization think benefitsdifferentiation is important?


H O W AR E Y O U U S I N G B E N EF I T S T O AT T R A C T& R E TAI N TAL E N T ?

T H I N KD I F F E R E N T I AT I O NA N D I N N O VAT I O N

I S I M P O R TA N T

96%

RANK CURRENT STATE FUTURE STATE

1 PERQUISITES EMPLOYEE CHOICE

2 EMPLOYEE EXPERIENCE INNOVATION

3 DELIVERY DIVERSITY

W hat ar e you cur rent ly doing tod i f fe rent ia te?

And in the future , whi ch are a doyou int end to inves t in?


PILLAR 2How are you creating differentiation viabenefits?


PILLAR 3Analytics and Metr icsUsing available data to design programs thatare right for the organizations workforce.


A R E Y O U C O L L E C T I N G A N D A N A LY S I N G T H E R I G H TD ATA ?

>50%have problemswith availability,credibility andaccessibility of

data

Only 45%using data

collected

86%rely on

benchmarking todesign benefits

program

96%O F E M P L O Y E R SC O L L E C T D A T A But…


22%

46%

41%

11%

20%

16%

27%

47%

14%

30%

14%

31%

32%

11%

27%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Employee absence data

Employee physical check up reports

Medical plan claims history

Employee assistance program (EAP)

Participation in health and wellness programs

% of Companies Using Data Collected for Key Uses

DATA MOST COMMONLY USED FOR HEALTH & WELLNESSSTRATEGY

Assist with developing a targeted health strategy

Monitor utilization of health and wellness programs

Understand employee health profile


PILLAR 3How are you measuring the success/ROIof your benefit programs?


PILLAR 4Branding and CommunicationEnsuring that employees appreciate thevalue of the their benefits.


C U R R E N T P R AC T I C E S

53%

14%

18%

4%

11%

Once a year

Quarterly

Don't communicate at all

Monthly

Twice a yearC O M M U N I C A T I O N

P R A C T I C E S

11%

13%

16%

27%

29%

Recognized in the market

Designated name

Global positioning appliedregionally

Consistently rolled out locally

Don't brandB R A N D I N G

P R A C T I C E S


H O W DO Y O U EN SU R E E M P L OY E E S AP P R E C I AT ET H E I R B E N E F I T S ?

53%Communicateonce a year

18%Don’t communicate

at all

93%Think branding &communication is

VERY IMPORTANT

12%Employee Appreciation

Successful branding of the valueproposition inspires a strong

emotional connection betweenemployees and their organization

Communication is critical & closely linked tobranding. Benefit programs will not deliver

value if employees are uninformed –employees can’t appreciate something they

unaware of


PILLAR 4What is your main form ofcommunication to employees on benefitprograms?


MISSING LINKSE m p l o y e e b e n e f i t s p r o g r a m s i n A s i a h a v eg e n e r a l l y n o t p r o d u c e d r e s u l t s c o m p a n i e s a r el o o k i n g f o r .


W H Y E M P L O Y E E B E N E F I T S P R O G R AM S N O TP R O D U C I N G D E S I R E D R E S U LT S ?

H AV I N G L I T T L E T ON O AWAR E N E S S O F

B E N E F I T S

Lack of appreciation

Diminishing value ofbenefits

N O T L E V E R AG I N GT H E R I G H T D ATA

Not using data to understandworkforce needs

Little visibility and management ofcost and no tracking of ROI

N AV I G AT I N GW IT H O U T A R O AD

MAP

No linking of benefits tobusiness goals/objectives

Lack of decision-makingpower

E m p l o y e e b e n e f i t s p r o g r a m s i n A s i a h a v e g e n e r a l l y n o t p r o d u c e d t h er e s u l t s c o m p a n i e s a r e l o o k i n g f o r , w i t h t h e m a i n i s s u e b e i n g h o w

p r o g r a m s a r e e x e c u t e d .


C O N T R I B U T I N G FAC T O R S

C O N D U C TB E N C H M A R K I N G

‘ C O L L E C T ’W H A T O T H E R S

A R E D O I N G

N E G O T I A T E /R E M A R K E T

F O R L O W E S TQ U O T E S

S T O P

H R O W N S A L LT H E M I S S I N G

L I N K S

L E V E R A G I N GA P P R O P R I A T E D A T A

I N A M E A N I N G F U LW A Y T O D E V E L O P AR O A D M A P M A Y B E A

G O O D S T A R T I N GP O I N T

S H I F T F O C U S F R O MT H E T R A D I T I O N A L

A N D T A C T I C A LM E A N S T O A M O R E

G O A L O R I E N T E DA P P R O A C H

E m p l o y e r s s t r u g g l e t o d e v e l o p e f f e c t i v e e m p l o y e e b e n e f i t sp r o g r a m s b e c a u s e b e n e f i t s a r e a l l t o o o f t e n m a n a g e d t a c t i c a l l y .


BRIDGING THE GAPSB e n e f i t s s h o u l d b e m a n a g e d a s a k e yc o m p o n e n t o f a n e m p l o y e r ’ s t o t a l r e w a r d ss t r a t e g y.


D E V E L O P I N G A B E N E F I T S S T R AT E G Y R O AD M A P

A P P R O A C H

D E L I V E R Y

D E S I G N

M E A S U R E M E N T

S T R A T E G Y

B E S T P R A C T I C E F R A M E W O R K

ADAPABILITY,SUSTAINABILITY &

AFFORDABILITY

ANALYTICS &METRICS

BRANDING &COMMUNICATION

DIFFERENTIATION& INNOVATION


HEALTH PROTECTION

CAREERWORKPLACE /LIFESTYLE

BRANDING/COMMUNICATION

CULTURAL ALIGNMENT

COMPETITIVE

DIFFERENTIATED

UNIQUE

CONTRACTUAL

EMOTIONAL

+

The greater the emotional connection,the less dependence on contractualcomponents, the greater benefitappreciation.

B R I D G I N G T H E G A P SB E S T P R AC T I C E F R AM E W O R K


M AK E Y O U R T O TAL R E WA R D S S T R AT E G YW O R K F O R Y O U

DESIG

ND

ELIV

ER

Reward elements areinterdependent

Think holistically

Work/lifeCareers

Pay BenefitsMoney

Draw on multipleperspectives

Use facts and analytical tools tomake better rewards decisions

Employer Employee

Cost External

Measure Integrate

Monitor Personalize

Delivery

Monitor business, HRoutcomes, and service

Consider outcomesbefore design

Improve workforce performance usingdata and analytics to drive productivity,

budget and profit

Attraction Engagement

Retention Results

Financing

Identify protocols for deploymentof Total Rewards strategy;

centralized and locally

Policies &Reporting

DecisionMaking

RegulatoryCompliance

Evolving &Dynamic

Communicate toincrease reward value

Craft a story with acompelling employee

proposition

Online Statements

Personalize CompanyWide


AD D I T I O N A L I N F O R M AT I O N AB O U T T H E SU RV E YG E T I N T O U C H W I T H U S

L I AN A ATTA R DP R I N C I P A L , A S I A , M I D D L E E A S T & A F R I C AC O N S U L T I N G L E A D E RM E R C E R M A R S H B E N E F I T ST: +65 6398 2543E: [email protected]

H E E N A S E TH IS E N I O R A S S O C I A T E , A S I A P A C I F I C R E G I O N A LC O N S U L T I N GM E R C E R M A R S H B E N E F I T S

T: +852 3476 3936E: [email protected]

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© MERCER MARSH BENEFITS LLC 2016 35December 12, 2016

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Please consult your Marsh or Mercer consultants regarding any restrictions that may be applicable to the ability of Marsh or Mercer to provide regulated services or products to you in yourcountry.

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Documents

2016 BENEFITS UNDER THE LENS: IDENTIFYING … MALAYSIA PHILIPPINES ... SOCIAL MEDIA TWEET ... to sell by either Marsh or Mercer to provide any regulated …