The Times Australia
News From Asia

.

Aon Study Finds Rising Cost of Employee Benefits a Top Concern for Asia Pacific Businesses

  • 57 percent of employees are not fully clear about the benefits provided by their organisation
  • 2 in 3 employers report their benefits offering does not fully support their diverse workforce
  • 1 in 2 employers did not have a benefits strategy

SINGAPORE - Media OutReach - 23 November 2022 - Aon plc (NYSE: AON), a leading global professional services firm, has published its 2022 Asia Pacific Employee Benefit Trends Report, which evaluates the changing expectations of employees and the trends in employee benefit strategies in the region. The insights from the study aim to help employers quantify and qualify employee benefits and assess how their organisations can increase workforce resilience amid an increasingly volatile talent market.

The Aon study revealed that 55 percent of employers found that increase in benefit plan cost was their top challenge followed by 54 percent reporting unavailability of benefit packages that offer diversity, options, and flexibility to attract and retain talent.

Benefits Strategy

Exacerbated by the COVID-19 pandemic there has been a rapid and significant change in employee expectations in the region. Employees increasingly seek a work environment that supports their mental health and wellbeing, with increasing numbers asking for remote work arrangements, meaningful work and shorter hours. Employers recognise this with 35 percent of those surveyed reporting that 1 in 4 of their employees may work remotely in future.

However, while employee wellbeing was a key priority for 46 percent of the employers surveyed, 1 in 2 of the companies indicated that they lacked a clear benefits philosophy and that mid to longer term benefits strategy was a key future priority for them. Furthermore, 1 in 5 companies did not review their benefit offerings on a regular basis.

Tim Dwyer, chief executive officer of Health Solutions for Asia Pacific at Aon, said: "Employers in the region need to recognise the shift in employee work motivations resulting from COVID-19 and rethink their benefits strategy. To ensure they build a resilient workforce that can thrive during times of ongoing change and complexity, employers must leverage available anonymised and aggregated data insights around health and wellbeing, alongside employee feedback to gain insight into needs and expectations. These insights can inform decisions on how to manage the evolving structure of work or more specific solutions, such as ways to achieve a healthier and more inclusive team. Apart from the diversity and flexibility of benefits, there is a need to communicate the benefits employees receive more clearly."

Benefits Diversity and Communications

Talent attraction and retention is key for organisations with 28 percent reporting an increase in turnover of more than 5 percent in 2022. In the face of rising inflation and skill shortages, employers are offering holistic compensation packages, including benefits to attract and retain people with the right skills. However, 41 percent of employers reported that their benefits were not sufficient to fulfil employees' needs and 45 percent found that their benefits were perceived as 'below market'.

The study also found that 1 in 3 employers plan to implement flexible options or a choice programme in the near future, leveraging digital tools and voluntary benefits. Most prevalent locations where employers are implementing a flexible benefits programme are Philippines, India, China, Singapore, Malaysia, and Hong Kong.

Apart from a focus on enhancing benefits choices for the diverse workforce, the study also found that there are issues with the communication of benefit offerings to employees. Fifty seven percent of employers confirmed their employees were not fully aware of the benefits provided by the organisation, even though 3 in 4 employers communicated benefits through email and 41 percent used a digital benefits platform, with more companies moving toward providing a 'digital benefits home hub', as an access point for all things benefits.

Simon Thompson, practice leader for Health Solutions for Asia Pacific at Aon said, "Since the COVID-19 pandemic, there has been heightened expectations from employees for meaningful work, mental and physical wellbeing and work-life balance. These expectations are different for various talent groups; therefore, a standardised benefit offering may not appeal to all. Businesses therefore must have a clear employee benefit strategy catering to the various talent groups and ensure benefits are communicated often, leveraging both digital and more traditional approaches, whilst balancing sustainable benefit plan costs. A clear benefits and communication strategy will help businesses make better workforce decisions based on employee health and wellbeing data, talent attraction and retention outcomes, benefits spend and business performance - and ensure all elements are aligned to build a resilient workforce."

More information about Aon in Asia is available here.

Hashtag: #Aon

The issuer is solely responsible for the content of this announcement.

About Aon

(NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business.

Follow Aon on and . Stay up-to-date by visiting the and sign up for News Alerts .

Times Magazine

Choosing the Right Legal Aid Lawyer in Sutherland Shire: Key Considerations

Legal aid services play an essential role in ensuring access to justice for all. For people in the Sutherland Shire who may not have the financial means to pay for private legal assistance, legal aid ensures that everyone has access to representa...

Watercolor vs. Oil vs. Digital: Which Medium Fits Your Pet's Personality?

When it comes to immortalizing your pet’s unique personality in art, choosing the right medium is essential. Each artistic medium, whether watercolor, oil, or digital, has distinct qualities that can bring out the spirit of your furry friend in dif...

DIY Is In: How Aussie Parents Are Redefining Birthday Parties

When planning his daughter’s birthday, Rich opted for a DIY approach, inspired by her love for drawing maps and giving clues. Their weekend tradition of hiding treats at home sparked the idea, and with a pirate ship playground already chosen as t...

When Touchscreens Turn Temperamental: What to Do Before You Panic

When your touchscreen starts acting up, ignoring taps, registering phantom touches, or freezing entirely, it can feel like your entire setup is falling apart. Before you rush to replace the device, it’s worth taking a deep breath and exploring what c...

Why Social Media Marketing Matters for Businesses in Australia

Today social media is a big part of daily life. All over Australia people use Facebook, Instagram, TikTok , LinkedIn and Twitter to stay connected, share updates and find new ideas. For businesses this means a great chance to reach new customers and...

Building an AI-First Culture in Your Company

AI isn't just something to think about anymore - it's becoming part of how we live and work, whether we like it or not. At the office, it definitely helps us move faster. But here's the thing: just using tools like ChatGPT or plugging AI into your wo...

The Times Features

Detect Hidden Water Leaks Fast: Don’t Ignore Hot Water System Leaks

Detecting water leaks early is crucial for preventing extensive damage to your home. Among the various parts of a home’s plumbing system, hot water systems are particularly suscept...

Why do hamstring injuries happen so often and how can they be prevented?

In a recent clash against the Melbourne Storm, the Brisbane Broncos endured a nightmare rarely seen in professional sport — three players tore their hamstrings[1] in a single g...

What Is the Australian Government First Home Buyers Scheme About?

For many Australians, buying a first home can feel like a daunting task—especially with rising property prices, tight lending rules, and the challenge of saving for a deposit. ...

How artificial intelligence is reshaping the Australian business loan journey

The 2025 backdrop: money is moving differently If you run a small or medium-sized business in Australia, 2025 feels noticeably different. After two years of stubbornly high bo...

Top Features of Energy‑Efficient Air Conditioners for Australian Homes

In recent years, energy efficiency has become more than just a buzzword for Australian households—it’s a necessity. With energy prices rising and climate change driving hotter su...

Long COVID is more than fatigue. Our new study suggests its impact is similar to a stroke or Parkinson’s

When most people think of COVID now, they picture a short illness like a cold – a few days of fever, sore throat or cough before getting better. But for many, the story does...