DECEMBER 7, 2016
Liana AttardPrincipal, Asia, Middle East and Africa Consulting Leader
Heena SethiSenior Associate, Asia Pacific, Regional Consulting
2016 BENEFITS UNDER THE LENS:IDENTIFYING THE MISSING LINK
© MERCER MARSH BENEFITS LLC 2016 2
AG E N D A
S U RV E Y O V E RV I E W &KEY F INDINGS
C U R R E N T P R AC T I C E S
MIS S ING L INKS
BRIDGING THE GAPS
Employers are looking for ways todifferentiate themselves to gain acompetitive advantage in the war for talent.
What methods are companies using todevelop their benefits strategy?
Why are employee benefits programs in Asianot producing results companies are lookingfor?
Mercer Marsh Benefits recommendations fordeveloping an effective strategy.
© MERCER MARSH BENEFITS LLC 2016 3
F O C US AR E A S
What canemployers do tobridge the gapsto improve thevalue of their
benefits?
What arethe “missing
links”?
What evolvingrole does
benefits playwithin the total
rewardsframework?
What does a bestpractice framework
look like?
© MERCER MARSH BENEFITS LLC 2016 4
S URV E Y D EM O G R AP H I C S
12COUNTRIES
SOUTHKOREA TAIWAN
INDIA INDONESIA
JAPAN MALAYSIA
PHILIPPINES SINGAPORE
CHINA HONG KONG
THAILAND VIETNAM
100+COMPANIES
1 TO 25,000EMPLOYEE
HEADCOUNT
HRD, CEO, VP
654PARTICIPANTS
36INDUSTRIES
PARTICIPANTPROFILES
© MERCER MARSH BENEFITS LLC 2016 5
K E Y F I N D I N G S
© MERCER MARSH BENEFITS LLC 2016 6
2
K E Y C H A L L E N G E S
3 21% average turnover over 5 years
1 18% annual cost increase for 5+ years
2 37% engaged 65% felt company doesn’t care
© MERCER MARSH BENEFITS LLC 2016 7
T H E R O L E O F B E N E F I T S
1 Increases employee satisfaction/appreciation
2 Helps with talent attraction and retention
3 Creates value under a total rewards strategy
WH AT I S TH E R OLE OF BE NE FITSIN YOUR ORGANIZAT IO N?
HOW IMPORTANT ARE BENEF ITSTO YOUR ORGANIZAT IO N ?
61%
© MERCER MARSH BENEFITS LLC 2016 8
E V O LV I N G T O TAL R E WAR D S S T R AT E G YT H E I N C R E A S I N G I M P O R TA N C E O F B E N E F I T S
DESIG
ND
ELIV
ER
Reward elements areinterdependent
Think holistically
Work/lifeCareers
Pay BenefitsMoney
Draw on multipleperspectives
Use facts and analytical tools tomake better rewards decisions
Employer Employee
Cost External
Measure Integrate
Monitor Personalize
Delivery
Monitor business, HRoutcomes, and service
Consider outcomesbefore design
Improve workforce performance usingdata and analytics to drive productivity,
budget and profit
Attraction Engagement
Retention Results
Financing
Identify protocols for deploymentof Total Rewards strategy;
centralized and locally
Policies &Reporting
DecisionMaking
RegulatoryCompliance
Evolving &Dynamic
Communicate toincrease reward value
Craft a story with acompelling employee
proposition
Online Statements
Personalize CompanyWide
© MERCER MARSH BENEFITS LLC 2016 9
T H E F O U R P I L L A R S O F B E S T P R A C T I C E
B R AN D I N G &C O M M U N I C AT I O N S
D ATA &AN ALY T I C S
D I F F E R E N T I AT I O N& I N N O VAT I O N
AD APTAB IL IT Y,S U S TAI N AB I L I T Y
& AF F O R D A B I L I T Y
The Benefits Under the Lens Survey takes a look inside the current benefitpractices of companies across Asia and outlines the key to a best-practice
employee benefits framework:
© MERCER MARSH BENEFITS LLC 2016 10© MERCER MARSH BENEFITS LLC 2016 10
PILLAR 1Adaptabi l i ty, sustainabi l i tyand affordabi l i tyMeeting the changing needs of the workforcein Asia’s fast-paced economy and dynamicenvironment.
© MERCER MARSH BENEFITS LLC 2016 11
D E S I G N I N G AN D E VAL U AT I N G A B E N E F I T SP R O G R AM
How do you identify and meet the changing needs of theworkforce?
What data are you using to assist with developing,designing and refining benefits programs?
What data limitations are you facing in assisting withstructuring benefits?
82%
B E N C H M AR K I N GS T U D Y
86%
E M P L O Y E EB E N C H M AR K S
66%
AVAI L A B IL I T YO F D ATA
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AR E Y O U R B E N EF I T S W O R K I N G F O R Y O U ?
B E N E F I T M A N A G E M E N T M E A S U R E SA D O P T E D B Y E M P L O Y E R S
CHALLENGES
81%Unable toidentify returnon investment
80%Financial andbudgetlimitation
81%Have difficultybalancing costsand competitivebenefits
70%Have nodecision makingauthority
R E A C T I O N A R Y INSURER NEGOTIATION | DESIGN CUT | REMARKETING 48%*
P R O A C T I V I T Y FULLY INTEGRATED TARGETED WELLNESS PROGRAM | VENDORMANAGEMENT | CONSUMERISM 5%**
*2016 Benefits Trends in Asia Pacific Survey
**2013 Mercer Marsh Benefits Total Health & Choice Survey
© MERCER MARSH BENEFITS LLC 2016 132016 APAC Benefits Pulse Survey
Reducing PremiumCosts Through Pooling
& Group Schemes
E M P L O Y E R C O S T M AN A G E M E N T P R AC T I C E S
Implementing Caps& Limits On
Benefits Spend
Provision Of HealthyLifestyle Benefits &Wellness Programs
Implementing Co-payment & Front End
Deductibles
RANK/YEAR
2016 1 2 2 4
2015 1 3 2 4
2014 1 3 2 4
© MERCER MARSH BENEFITS LLC 2016 14© MERCER MARSH BENEFITS LLC 2016 14
PILLAR 1Do your benefit programs meet thechanging needs of your workforce?
© MERCER MARSH BENEFITS LLC 2016 15© MERCER MARSH BENEFITS LLC 2016 15
PILLAR 2Differentiat ion andInnovationUsing benefits to attract and retain talent.
© MERCER MARSH BENEFITS LLC 2016 16
W H AT D O E S I T M E AN T O Y O U ?
How do you differentiate benefits?
3%
29%
32%
41%
77%
Others
Branding
Culture
Unique benefits
Comprehensiveness of benefitspackage
of employers define differentiation as offeringcomprehensive benefits packages.77%
4%
58%
61%
70%
80%
Our organization doesn’t feel it isimportant
Promote employee valueproposition
Support total rewards strategy
Increase employee engagement
Talent attraction and retention
Why does your organization think benefitsdifferentiation is important?
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H O W AR E Y O U U S I N G B E N EF I T S T O AT T R A C T& R E TAI N TAL E N T ?
T H I N KD I F F E R E N T I AT I O NA N D I N N O VAT I O N
I S I M P O R TA N T
96%
RANK CURRENT STATE FUTURE STATE
1 PERQUISITES EMPLOYEE CHOICE
2 EMPLOYEE EXPERIENCE INNOVATION
3 DELIVERY DIVERSITY
W hat ar e you cur rent ly doing tod i f fe rent ia te?
And in the future , whi ch are a doyou int end to inves t in?
© MERCER MARSH BENEFITS LLC 2016 18© MERCER MARSH BENEFITS LLC 2016 18
PILLAR 2How are you creating differentiation viabenefits?
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PILLAR 3Analytics and Metr icsUsing available data to design programs thatare right for the organizations workforce.
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A R E Y O U C O L L E C T I N G A N D A N A LY S I N G T H E R I G H TD ATA ?
>50%have problemswith availability,credibility andaccessibility of
data
Only 45%using data
collected
86%rely on
benchmarking todesign benefits
program
96%O F E M P L O Y E R SC O L L E C T D A T A But…
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22%
46%
41%
11%
20%
16%
27%
47%
14%
30%
14%
31%
32%
11%
27%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Employee absence data
Employee physical check up reports
Medical plan claims history
Employee assistance program (EAP)
Participation in health and wellness programs
% of Companies Using Data Collected for Key Uses
DATA MOST COMMONLY USED FOR HEALTH & WELLNESSSTRATEGY
Assist with developing a targeted health strategy
Monitor utilization of health and wellness programs
Understand employee health profile
© MERCER MARSH BENEFITS LLC 2016 22© MERCER MARSH BENEFITS LLC 2016 22
PILLAR 3How are you measuring the success/ROIof your benefit programs?
© MERCER MARSH BENEFITS LLC 2016 23© MERCER MARSH BENEFITS LLC 2016 23
PILLAR 4Branding and CommunicationEnsuring that employees appreciate thevalue of the their benefits.
© MERCER MARSH BENEFITS LLC 2016 24
C U R R E N T P R AC T I C E S
53%
14%
18%
4%
11%
Once a year
Quarterly
Don't communicate at all
Monthly
Twice a yearC O M M U N I C A T I O N
P R A C T I C E S
11%
13%
16%
27%
29%
Recognized in the market
Designated name
Global positioning appliedregionally
Consistently rolled out locally
Don't brandB R A N D I N G
P R A C T I C E S
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H O W DO Y O U EN SU R E E M P L OY E E S AP P R E C I AT ET H E I R B E N E F I T S ?
53%Communicateonce a year
18%Don’t communicate
at all
93%Think branding &communication is
VERY IMPORTANT
12%Employee Appreciation
Successful branding of the valueproposition inspires a strong
emotional connection betweenemployees and their organization
Communication is critical & closely linked tobranding. Benefit programs will not deliver
value if employees are uninformed –employees can’t appreciate something they
unaware of
© MERCER MARSH BENEFITS LLC 2016 26© MERCER MARSH BENEFITS LLC 2016 26
PILLAR 4What is your main form ofcommunication to employees on benefitprograms?
© MERCER MARSH BENEFITS LLC 2016 27© MERCER MARSH BENEFITS LLC 2016 27
MISSING LINKSE m p l o y e e b e n e f i t s p r o g r a m s i n A s i a h a v eg e n e r a l l y n o t p r o d u c e d r e s u l t s c o m p a n i e s a r el o o k i n g f o r .
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W H Y E M P L O Y E E B E N E F I T S P R O G R AM S N O TP R O D U C I N G D E S I R E D R E S U LT S ?
H AV I N G L I T T L E T ON O AWAR E N E S S O F
B E N E F I T S
Lack of appreciation
Diminishing value ofbenefits
N O T L E V E R AG I N GT H E R I G H T D ATA
Not using data to understandworkforce needs
Little visibility and management ofcost and no tracking of ROI
N AV I G AT I N GW IT H O U T A R O AD
MAP
No linking of benefits tobusiness goals/objectives
Lack of decision-makingpower
E m p l o y e e b e n e f i t s p r o g r a m s i n A s i a h a v e g e n e r a l l y n o t p r o d u c e d t h er e s u l t s c o m p a n i e s a r e l o o k i n g f o r , w i t h t h e m a i n i s s u e b e i n g h o w
p r o g r a m s a r e e x e c u t e d .
© MERCER MARSH BENEFITS LLC 2016 29
C O N T R I B U T I N G FAC T O R S
C O N D U C TB E N C H M A R K I N G
‘ C O L L E C T ’W H A T O T H E R S
A R E D O I N G
N E G O T I A T E /R E M A R K E T
F O R L O W E S TQ U O T E S
S T O P
H R O W N S A L LT H E M I S S I N G
L I N K S
L E V E R A G I N GA P P R O P R I A T E D A T A
I N A M E A N I N G F U LW A Y T O D E V E L O P AR O A D M A P M A Y B E A
G O O D S T A R T I N GP O I N T
S H I F T F O C U S F R O MT H E T R A D I T I O N A L
A N D T A C T I C A LM E A N S T O A M O R E
G O A L O R I E N T E DA P P R O A C H
E m p l o y e r s s t r u g g l e t o d e v e l o p e f f e c t i v e e m p l o y e e b e n e f i t sp r o g r a m s b e c a u s e b e n e f i t s a r e a l l t o o o f t e n m a n a g e d t a c t i c a l l y .
© MERCER MARSH BENEFITS LLC 2016 30© MERCER MARSH BENEFITS LLC 2016 30
BRIDGING THE GAPSB e n e f i t s s h o u l d b e m a n a g e d a s a k e yc o m p o n e n t o f a n e m p l o y e r ’ s t o t a l r e w a r d ss t r a t e g y.
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D E V E L O P I N G A B E N E F I T S S T R AT E G Y R O AD M A P
A P P R O A C H
D E L I V E R Y
D E S I G N
M E A S U R E M E N T
S T R A T E G Y
B E S T P R A C T I C E F R A M E W O R K
ADAPABILITY,SUSTAINABILITY &
AFFORDABILITY
ANALYTICS &METRICS
BRANDING &COMMUNICATION
DIFFERENTIATION& INNOVATION
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HEALTH PROTECTION
CAREERWORKPLACE /LIFESTYLE
BRANDING/COMMUNICATION
CULTURAL ALIGNMENT
COMPETITIVE
DIFFERENTIATED
UNIQUE
CONTRACTUAL
EMOTIONAL
+
The greater the emotional connection,the less dependence on contractualcomponents, the greater benefitappreciation.
B R I D G I N G T H E G A P SB E S T P R AC T I C E F R AM E W O R K
© MERCER MARSH BENEFITS LLC 2016 33
M AK E Y O U R T O TAL R E WA R D S S T R AT E G YW O R K F O R Y O U
DESIG
ND
ELIV
ER
Reward elements areinterdependent
Think holistically
Work/lifeCareers
Pay BenefitsMoney
Draw on multipleperspectives
Use facts and analytical tools tomake better rewards decisions
Employer Employee
Cost External
Measure Integrate
Monitor Personalize
Delivery
Monitor business, HRoutcomes, and service
Consider outcomesbefore design
Improve workforce performance usingdata and analytics to drive productivity,
budget and profit
Attraction Engagement
Retention Results
Financing
Identify protocols for deploymentof Total Rewards strategy;
centralized and locally
Policies &Reporting
DecisionMaking
RegulatoryCompliance
Evolving &Dynamic
Communicate toincrease reward value
Craft a story with acompelling employee
proposition
Online Statements
Personalize CompanyWide
© MERCER MARSH BENEFITS LLC 2016 34
AD D I T I O N A L I N F O R M AT I O N AB O U T T H E SU RV E YG E T I N T O U C H W I T H U S
L I AN A ATTA R DP R I N C I P A L , A S I A , M I D D L E E A S T & A F R I C AC O N S U L T I N G L E A D E RM E R C E R M A R S H B E N E F I T ST: +65 6398 2543E: [email protected]
H E E N A S E TH IS E N I O R A S S O C I A T E , A S I A P A C I F I C R E G I O N A LC O N S U L T I N GM E R C E R M A R S H B E N E F I T S
T: +852 3476 3936E: [email protected]
AUT HO RS WEBSI T E
WWW.BENEFITS-UNDER-THE-LENS.COM
S O CI AL M EDI A
TW E E T W I TH U S !@ M E R C E R A M E A@ M E R C E R
F O L L O W U S !W W W. L IN K E D I N . C O M /C O M PAN Y / M E R C E R
© MERCER MARSH BENEFITS LLC 2016 35December 12, 2016
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