Indian employers (about 78%) named rising benefit costs as the most pressing challenge they face. The Towers Watson 2015 Asia Pacific Benefit Trends survey found that 55% of Indian employers spend more than a quarter of their benefits spend on providing health-related benefits, compared to 38% employers in the Asia Pacific region.
The survey also found that 42% Indian employers want to improve employee well-being as one of the top objectives of their benefit strategy as compared to 26% in the region. Notably, fewer employers (19%) are focusing purely on containing health-related benefit costs.
"Health care costs, already a significant percentage of payroll costs, continue to rise. While this is a challenge for employers, it is also an opportunity to consider innovative, targeted strategies that improve ROI on health spends without simply adding more programmes," said Anuradha Sriram, Director - Benefits, Towers Watson India.
The most prevalent health management benefits offered in India are occupational health and safety (56%) and biometric screening (51%) as per the survey. While health risk assessments are the most valued, currently less than half (46%) of Indian employers offer them, while an additional 22% plan to offer them in the coming year.
Sriram said that health benefits such as medical inpatient and outpatient are among the most valued by India employees, and can play a vital role in sustaining employee engagement.
Despite the fact that chronic diseases are a significant and growing health concern in the region, chronic condition management programmes have not gained traction with Indian employers, with only 13% currently offering them. Giving an insight into prevailing cultural norms, more employers in India cover dependents than their regional counterparts. For instance, while less than a quarter (21%) employers in Asia Pacific cover dependent parents, almost half (44%) of Indian employers cover them.
The survey said that stress is largely seen to be a top lifestyle risk faced by Indian employees. Yet, less than 2 in 5 (36%) Indian employers currently offer stress management programmes - however, the situation is set to improve with an additional 30% employers planning to offer such programmes in the future.
The 2015 Asia Pacific Benefits survey took responses from 1,145 employers across 20 countries.