DESPITE how beneficial a benefits programme can be to a company, a new survey found that not all businesses place them in such high regard due to the extra costs they need to incur as a result.
According to employee flexible benefits platform Mednefits, this was the view of 30% of small and medium-sized enterprises (SMEs) and 20% of multinational companies (MNCs) surveyed, respectively.
Medical benefits, in particular, are seen as an additional cost by three out of every 10 businesses, Mednefits’ 2022 Employee Benefits Trend report found further.
The survey, which was conducted among 200 human resources (HR) decision-makers in mostly SMEs (75%), followed by MNCs (25%), in Malaysia and Singapore, provides insights into the challenges of administering employee medical benefits and the future of the industry.
In a statement, Mednefits said having a great flexible benefits programme is considered important to many employees today as more than 60% of employees surveyed consider benefits and perks as major factors when deciding on a job offer.
“There could be benefits to investing in an employee benefits programme, like greater employee engagement and a greater ability to attract and retain talent,” they noted.
According to the survey, the three most common types of medical benefits provided and the average amount spent per employee are:
- Inpatient care (81%) | US$619
- General practitioner outpatient (40%) | US$453
- Health screening (53%) | US$308
On the other hand, the three least common types of medical benefits provided and the average amount spent per employee are:
- Traditional Chinese medicine (8%) | US$400
- Wellness (including yoga, mental health, etc) (21%) | US$505
- Optical (31%) | US$280
“Employees’ mental health not a priority”
Meanwhile, despite the survey finding that one in every three Malaysians suffers from mental health issues, it is not given as much priority, with only 20% of companies offering wellness benefits to their employees.
Trying to manage one’s mental health while also balancing work may have an impact on an employee’s performance, ultimately costing the company, Mednefits warned.
“However, more Malaysian employers are slowly starting to emphasise wellness benefits such as gym membership, supplements, yoga classes, mental healthcare, physiotherapy and so on to help employees seek treatment and improve their health and well-being,” it said.
Even so, employers still struggle to develop suitable benefits for their employees and often offer ones that are not tailored and can sometimes depend on the employee’s performance.
Despite the fact that companies are willing to implement flexible benefits (70%), there are several obstacles to implementation. The most difficult challenge for most companies is creating a flexible benefits plan that is tailored to each employee’s needs (34%).
Other concerns include:
- Being unsure if employees would prefer the flexible model (71%);
- Possible friction within the company when making changes (66%); and
- Not being sure of the available tools for a smooth implementation (62%).
Mednefits Malaysia co-founder and country manager Clarence Zhang, however, pointed out that there are many innovative ways of reducing healthcare spending in Malaysia, such as flexible benefits spending accounts, digital benefits platforms and co-payment – services which his platform provides.
“By managing all medical and flex benefits on a single platform and offering cashless payments, this improves accuracy and consistency in claim submissions and eliminates the need for manual reimbursement – (and) at the end of the day, companies find that they are able to improve their operations while also saving money; best of both worlds.” – Nov 3, 2022
Main photo credit: Reuters
