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Singapore Employers Emphasise Health Benefits, But Are They Truly Maximising Their Impact?
In Singapore, health benefits are a cornerstone of employee value propositions (EVPs), with nine out of ten employers offering these perks to their staff.
However, a recent study by Cigna Healthcare reveals a significant gap between the availability of these benefits and their actual use by employees, raising questions about the effectiveness of such offerings.
The study, Harnessing Health – Measuring the Impact of Employee Health and Well-being Benefits, surveyed 1,000 HR leaders globally, including 200 from Singapore. It found that while health benefits are highly valued, they are often under-utilised by employees, which diminishes their potential impact on productivity and well-being.
The Role of Health Benefits in Attracting and Retaining Talent
In today’s competitive job market, Singaporean HR leaders recognise the importance of comprehensive health and well-being benefits in attracting and retaining top talent.
Sixty percent of those surveyed believe that these benefits contribute to reducing sick days, absenteeism, and even shortening working hours. In fact, health benefits ranked as the second most impactful EVP, just behind career progression.
Today’s workforce faces a multitude of challenges and stressors, ranging from the high cost of living to difficulties balancing work and other aspects of life. To attract and retain top talent and empower employees to perform at their best, employers need to offer a holistic set of employee value propositions that address everyone’s needs and aspirations where they are at. This includes robust health and well-being benefits, which may include health insurance, and fostering a workplace culture that prioritises employees’ health and vitality.”
Raymond Ng, CEO and Country Manager at Cigna Healthcare Singapore & Australia, emphasizes the importance of a holistic approach to employee well-being
The Challenge of Under-utilisation
Despite the clear advantages, the study highlights a troubling trend: two-thirds of HR leaders in Singapore report that their well-being services are under-utilised by employees.
This under-utilisation is the highest among the five markets surveyed, indicating a disconnect between the availability of benefits and employees’ engagement with them.
With effective dialogue and a keen understanding of employees’ priorities and pain points, companies can ensure sensible investment and fully harness the positive impacts of the most valued health and well-being benefits. Proactive effort is required to raise awareness of existing benefits and incentivise employees to take advantage of them.
Julie Lim, Key Accounts and Broker Relations Director, Asia Pacific, Cigna Healthcare, notes that raising awareness and accessibility is crucial.
Cost Considerations and the Need for Alignment
The cost of offering more comprehensive health and well-being programs remains a significant barrier for many employers. Nearly half of those not offering these benefits cite cost as the primary reason.
Yet, the benefits of a well-rounded well-being strategy are clear: 72 percent of HR leaders believe health insurance plays a crucial role in reinforcing a company culture that supports health and reduces absenteeism.
To maximise the impact of health and well-being benefits, employers must ensure that these offerings are aligned with employee needs and are easy to access. Regular reviews and open communication can help employers fine-tune their EVP, ensuring that the benefits provided are both valued and utilized by employees.
While health benefits are a vital component of employee value propositions in Singapore, their potential remains untapped due to under-utilisation and cost concerns. By increasing awareness, accessibility, and alignment with employee needs, employers can better leverage these benefits to enhance productivity, engagement, and overall well-being in the workplace.
Data and graphics taken from Harnessing Health – Measuring the Impact of Employee Health and Well-being Benefits report and Appendix.
