If you read my previous article on the Evolution of Employee Benefits, I’m sure that you will undoubtedly agree that the financial crisis of 2008 certainly was a major catalyst for change in the world of Employee Benefits.
The days of big benefit “full package”, company-sponsored health insurance packages are over as companies now focus on cost-cutting and the profile of an expat continues to transform. Today, many employees place overseas job opportunities at the top of their career-priority list, a grave departure from ten years earlier when companies had to sweeten the deal considerably to encourage people to make the international move.
Today, many expats in Singapore find they are now on local plans with limited coverage and no medical benefits for family members. Expats, who once only moved overseas if they were promised 100% medical coverage are now more adventurous, clearer on what they need from their employers, and thus more in control of their careers. For the new generation employee this doesn’t mean that protection against the unexpected isn’t important to those leaving the familiarity of their healthcare system at home, rather it’s simply become one of the top items on their personalized job-bucket list.
The question is, do you understand who this new generation employee is and what they desire?
The new generation employee is:
Globally mobile – They embrace global mobility as a competitive advantage and as a result they aren’t particularly loyal to one company. If your company can’t offer what they’re seeking, another will, and the new generation employee will ultimately commit to the one that is best suited to their individual circumstances. As an employer, you’ve got to keep up or keep recruiting.
All about partnerships – The new generation employee has an increasing preference for choice and a voice when it comes to their benefits. We have entered a new age where employees view their relationship with their employer as a partnership. Talent attraction has become a courtship. How does your company compare to your competition?
Seeking a culture of care and trust – Todays employees are seeking employers who are transparent, accountable, and most of all, those who demonstrate a culture of care and trust.
As you can guess, high turnover is becoming an ongoing and costly matter for companies today, but employers can inspire company loyalty and retention by creating attractive and engaging reasons to encourage their employees to stay. Implementing a comprehensive benefits package can be an alluring reason to stay with a company.
In their 2014 Global Benefit Attitudes survey, Towers Watson found that “…employees view benefits such as retirement and health as an important reason to work for or stay with their current employer.”
As companies expand overseas, HR leaders and benefit decision makers need to create their benefit structures locally while keeping a global focus due to the mobility demands of employers and employees alike.
As an HR decision-maker, are you doing all that you can to protect your employees and reduce annual turnover?