SIMPLE & EFFECTIVE MAKING YOUR BENEFITS …...needs flexibility and choice Employer branding...
Transcript of SIMPLE & EFFECTIVE MAKING YOUR BENEFITS …...needs flexibility and choice Employer branding...
SIMPLE & EFFECTIVEMAKING YOUR BENEFITS MATTER
Gary TokRegional Sales Leader, APAC Mercer Marsh Benefits
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Your agenda today…
1. The story so far…
2. Building a valued employee benefit program
3. Re-evaluating the benefit of benefits
4. Making your benefits matter
5. Questions
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The story so far…
Is your salary budget enough to “move the needle”on base pay and bonuses?
The tension between what the
business can afford and actual numbers
in the market.
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… but the story gets scarier…Are your employees becoming less engaged and less committed?
employees are looking to leave
In China
13
Source: Mercer 2011 What’s Working Survey China based on1,000 respondents in China
of employees in China are
seriously considering leaving their employer
34%(Up from 18% in 2004)
6.5% 2011 est
unemployment rates
of women inChina are
dissatisfied with their current employment but
they are less likely to leave
47%
of Gen X inChina are dissatisfied with base
and incentive pay
65%
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… and then even more scarier!
How easy is it to copy compensation?
Is your pay policy sustainable in the
long run?
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The costs of providing health benefits in ChinaDo you know how much it costs?
Source: Mercer Asia Pacific Total Health and Choice in Benefits 2011 Survey Report
China
Average salary of Mercer’s client base in China is RMB8,000 per month
2% - 15% of payroll equates to between RMB160 and RMB1,200 per month at average income levels amongst Mercer clients…
…or between RMB1,920 and RMB14,400 per annum.
Source: Mercer
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Is there a happy ending?Engaging employees while managing employment costs
Better value for money group medical and insurance as well as retirement benefits
Impact on productivity wellness programs and health solutions
Focused on specific employee needs flexibility and choice
Employer branding employment value versus employment price
What are the true benefits of benefits?
Do your employees recognise the true benefits of benefit? And do you know
whether your employees truly
value them?
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Drivers of the employee value propositionWhat do your employees in China really value?
Career Advancement
TrainingOpportunities
Base Pay
Bonus / other incentives
Working for a respectable organisation
Career Advancement
TrainingOpportunities
Base Pay
Supplemental retirement savings plan
Bonus / other incentives
Base Pay
Career Advancement
Supplemental retirement savings plan
TrainingOpportunities
Bonus / other incentives
Base Pay
Career Advancement
Supplemental retirement savings plan
Bonus / other incentives
Supplemental medical insurance coverage
Supplemental retirement savings plan
Base Pay
Career Advancement
TrainingOpportunities
Supplemental medical insurance coverage
1
2
3
4
5
16 – 24 years 25 – 34 years 35 – 44 years 45 – 54 years 55 –65 years
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Drivers of the employee value propositionWhat do your employees in China really value?
Career Advancement
TrainingOpportunities
Base Pay
Bonus / other incentives
Working for a respectable organisation
Career Advancement
TrainingOpportunities
Base Pay
Supplemental retirement savings plan
Bonus / other incentives
Base Pay
Career Advancement
Supplemental retirement savings plan
TrainingOpportunities
Bonus / other incentives
Base Pay
Career Advancement
Supplemental retirement savings plan
Bonus / other incentives
Supplemental medical insurance coverage
Supplemental retirement savings plan
Base Pay
Career Advancement
TrainingOpportunities
Supplemental medical insurance coverage
1
2
3
4
5
16 – 24 years 25 – 34 years 35 – 44 years 45 – 54 years 55 –65 years
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Drivers of the employee value propositionWhat do your employees in China really value?
Career Advancement
TrainingOpportunities
Base Pay
Bonus / other incentives
Working for a respectable organisation
Career Advancement
TrainingOpportunities
Base Pay
Supplemental retirement savings plan
Bonus / other incentives
Base Pay
Career Advancement
Supplemental retirement savings plan
TrainingOpportunities
Bonus / other incentives
Base Pay
Career Advancement
Supplemental retirement savings plan
Bonus / other incentives
Supplemental medical insurance coverage
Supplemental retirement savings plan
Base Pay
Career Advancement
TrainingOpportunities
Supplemental medical insurance coverage
1
2
3
4
5
16 – 24 years 25 – 34 years 35 – 44 years 45 – 54 years 55 –65 years
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Drivers of the employee value propositionWhat do your employees in China really value?
Career Advancement
TrainingOpportunities
Base Pay
Bonus / other incentives
Working for a respectable organisation
Career Advancement
TrainingOpportunities
Base Pay
Supplemental retirement savings plan
Bonus / other incentives
Base Pay
Career Advancement
Supplemental retirement savings plan
TrainingOpportunities
Bonus / other incentives
Base Pay
Career Advancement
Supplemental retirement savings plan
Bonus / other incentives
Supplemental medical insurance coverage
Supplemental retirement savings plan
Base Pay
Career Advancement
TrainingOpportunities
Supplemental medical insurance coverage
1
2
3
4
5
16 – 24 years 25 – 34 years 35 – 44 years 45 – 54 years 55 –65 years
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Drivers of the employee value propositionWhat do your employees in China really value?
Career Advancement
TrainingOpportunities
Base Pay
Bonus / other incentives
Working for a respectable organisation
Career Advancement
TrainingOpportunities
Base Pay
Supplemental retirement savings plan
Bonus / other incentives
Base Pay
Career Advancement
Supplemental retirement savings plan
TrainingOpportunities
Bonus / other incentives
Base Pay
Career Advancement
Supplemental retirement savings plan
Bonus / other incentives
Supplemental medical insurance coverage
Supplemental retirement savings plan
Base Pay
Career Advancement
TrainingOpportunities
Supplemental medical insurance coverage
1
2
3
4
5
16 – 24 years 25 – 34 years 35 – 44 years 45 – 54 years 55 –65 years
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Building a benefits program…
Base pay Variable pay Incentives Statutory
Retirement Insured Benefits Allowances Training
Career Development Work / Life
Supplemental Benefits
Employee Engagement and Communication
Delivering Employee Value
Diff
eren
tiatio
n ac
hiev
ed
Inve
stm
ent r
equi
red
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The cost of having an outdated benefit programSenior management concern – Where is the value?
A A private company with
2,0002,000employees
across China
CCurrent benefit program was mostly focus on cashcash allowances
Too many benefit items that were miscellaneous, program was
unfocusedunfocused
Most of the benefits were belowbelow market
and peer groups
Not valuedNot valuedby employee segments
with different needs
Poor awarenessPoor awarenessof current benefits despite
considerable investment by the employerRMB 20 RMB 20
millionmillionper annum spent!
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Assessing whether existing program is still relevantSenior management concern – Where are the gaps?
0%
25%
50%
75%
100%
125%
Wealth Benefits (Supplementary retirement orSupplementary housing or long-term
incentive)
Insurance-Risk Insurance
Insurance-Medical Insurance
Annual leave
Sick leave
Education Assistance
Business Travel
Cars Benefits
Daily Allow ance-Others (Transportation,Meal, Mobile phone)
Others Benef its
Benchmark Client
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Review and redesign of benefit programSenior management concern – How to make this an effective program?
Removed1. Long Service Award2. Attendance Bonus for
Manager and Above3. Transportation & Meal
Allowance for top management
4. Tissue benefits
Added1. Risk insurance2. Medical insurance3. General staff check up4. Women’s Day Benefit5. Employee Birthday Benefit6. Flexible choice for insured
benefit
ShortShort--TermTerm2012
1. Annual Leave
2. Sick Leave
3. Cars Benefits
4. Education Assistance
5. Wealth Benefits-Supplementary Housing
6. Commence implementation of Flexible Benefits program
MidMid--TermTerm2013-2014
1. Wealth benefits
2. Supplementary pension
3. Supplementary savings
LongLong--TermTerm2015-2020
Benchmark and market trends to guideguide design
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Employers’ perspective…
Creating an environment for engagementLooking at compensation and benefits holistically
Careers Work/LifeMoneyPay BenefitsBase pay
Guaranteed ‘bonuses’
Short term incentives
Long term incentives
Allowances
Financial recognitionprograms
Deferred compensation
Retirement
Savings
Medical/Dental/Vision/Prescription drugs
Short term and Longterm disability
Accident coverage
Performance and accountability
Career opportunity and pathing
Mobility
Leadership
Experiential rewards
Talent development
Time off
Wellness Programs
Dependent care
Workplace flexibility
Non-financial and status recognition
Commuter programs
Workplace facilities and prerequisites
Employees’ perspective…
My current value My security and protection My future value My quality of life
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Make your benefits matterSimple & Effective
• Design for need, not for benchmark!
• If you don’t tell, they won’t know. If they don’t know, they won’t value!
• Less is more, making it simple for employees is difficult!
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Mercer Compensation and Benefits Mobile AppDownload from the iTunes App Store and Android Play Store by searching “Mercer”…
• Reference guide to compensation and benefit programs for 49 countries.
• Compensation practices, retirement, medical, life and accident, long-term and short-term disability, car benefits and other perquisites and allowances.
• Includes statutory requirements, prevalence of employer-sponsored plans, typical plan design, overview of the overall benefits environment.
IMPORTANT NOTICE: This document does not constitute or form part of any offer or solicitation or invitation to sell by either Marsh or Mercer to provide any regulated services or products in any country in which either Marsh or Mercer has not been authorized or licensed to provide such regulated services or products. You accept this document on the understanding that it does not form the basis of any contract.
The availability, nature and provider of any services or products, as described herein, and applicable terms and conditions may therefore vary in certain countries as a result of applicable legal and regulatory restrictions and requirements.
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 your country.