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KUALA LUMPUR: More than four in five employers in Malaysia see competition for talent as the number one business issue influencing their strategy for employee benefits in 2023.
Despite rising costs, an increasing number of employers are targeting an 'above market' benefits position to attract top talent.
That is according to the 2023 Benefits Trends Survey by WTW, a leading global advisory, broking and solutions company.
The survey was conducted between March and April this year with responses from a total of 5,233 employers across 95 markets globally, representing 22.9 million employees.
Amongst which, 1,746 employers are based in Asia Pacific, representing 4.9 million employees.
In Malaysia, 85 employers took part in the survey, representing 0.2 million employees.
The survey showed competition for talent weighs in at 82 per cent as the top factors, followed by rising cost at 60 per cent.
WTW said the results are an indicator of employers being under pressure to balance budgets and evolve benefits strategies.
"More than half of employers cited that persistence of higher inflation of 54 per cent, and a weakening economy and business environment of 54 per cent would have a significant impact on their benefits budgets in the next two years," it said.
Director of health and benefits of Malaysia Rosalind Yu said the current state of Malaysian economy is pushing employers to balance between winning the competition for talent and rising cost of services while the budget remained tight.
"Despite the challenges, it is clear that employers recognise the urgency in delivering more efficient benefits programmes and remain committed to improving their portfolios.
"The key now will be to develop a truly equitable approach that not only tailors to the individual needs of the workforce, but also ensures that the value of their investments is optimised to become more cost- effective,"she said.
WTW said the results reflected the views of employers from the wider Asia Pacific region (APAC).
Moving forward, Malaysian employers acknowledged the importance of achieving 'above market' positions for their benefits portfolio in the next two years.
In terms of benefits financing, employers are taking more aggressive actions to manage the budgets of their benefits programmes.
"Our survey shows that employers are rethinking their benefits strategies in order to achieve 'above market' positions and adapt to employee's fast-evolving preferences in the near future.
"This will be a critical step in bridging the gaps of their existing programmes and more importantly, help to effectively manage business priorities such as rising cost and the competition for talent," it said.
Source: https://www.nst.com.my/business/2023/07/934578/more-employers-target-above-market-benefit-strategies