Companies try out flexibility in staff benefits

A majority of companies may be offering their employees various benefits in a bid to attract and retain talent, but only 18 per cent feel they are highly valued by the staff, according to a survey by Towers Watson, a professional services company.
Introducing more flexibility in the benefits programme, the employers feel, could address this gap between rewards and valuation, according to Towers Watson's 2015 Asia Pacific Benefit Trends survey.
The seriousness of intent can be gauged from the fact that almost one-third (30 per cent) is already looking at increasing the level of flexibility over the next 12 months while a similar number (31 per cent) is considering introducing the same in their module.

"Flexibility in the benefit programmes allows employers to move away from the one-size-fits-all approach and customise plan design, communication and delivery of employee benefits in a more segmented and targeted manner," Towers Watson India Director-Benefits Anuradha Sriram said.
To be sure, benefit costs, which form a significant percentage chunk of payroll costs, are on the rise. Three out of 10 Indian employers said they spend more than 20 per cent of payroll on benefits.
Benefits are increasingly seen as an integral part of the employee value proposition (EVP), and 52 per cent of the companies surveyed in India said talent attraction and retention remain the major focus of their benefit strategy, said the survey in a report.

"A majority of Indian employers are facing challenges in attracting and retaining top performing and high potential employees. In that context, it's pertinent to note the emergence of employee benefits as a key differentiator in the EVP basket," Sriram added.
A larger chunk of the largesse is spent on health benefits, the report said.
A total of 1,145 organisations spread over 20 countries in the Asia Pacific, including some 100 from India, were covered in the survey.