The Smart Strategy
for Employee Benefits
In Southeast Asia, group health and life insurance plans and corporate pensions are not commonly provided. Compared to Europe and North America, why do companies in in the region overlook this?
Are your employees worth investing in? Here are a number of reasons why you may want to consider providing employee benefits. The reality is that they can help employers and employees alike.
They want it!!!
Health insurance can boost productivity
High quality universal healthcare is generally not available in Southeast Asia. Without a national healthcare system, it is crucial for employers in Southeast Asia to invest in employee health insurance. Why? A healthy workforce makes good business sense by boosting productivity and morale.
A consensus believes that employee healthcare benefits increase productivity.
In 2017, Glassdoor conducted a survey which found 80% of employees would choose additional benefits over a pay raise.
Save with employee benefits
The sensible approach for employers is to purchase a group policy for employees. Insurance companies usually offer discounts on uniform policies, with larger savings for more participating employees. A recent quote comparison from Tenzing for a group of 5 resulted in a saving of 18.4% over the individual prices. Larger groups can save thousands in discounts.
In many jurisdictions, health insurance is considered a business expense that can lower your tax burden.
Life insurance can make your employees feel more financially stable
An employee can rest easily at night knowing that their family is protected in the event of the worst. Increasing your employee benefits package helps keep employees longer.
Employers can also purchase life insurance policies to recover the revenue that would be lost from an employee, perhaps due to a loss of their clients’ business.
For more on life insurance, check out our blog: Top 6 Reasons to Get Life Insurance
Attract and retain better employees with corporate pension schemes to help them save for retirement
Pension plans can again make your employees feel more financially stable and encourage them to remain with the company for the long term. More compensatory benefits make a job all the more attractive to a job seeker, even with a below-average salary.
Employers can also set up a profit-sharing plan as part of an employee’s retirement benefits, similar to defined contribution plans, but with extra motivation to perform.
Help employees save and invest with international savings accounts
An international savings account is perfect for employees who may be working with multiple currencies, giving them the ability to save and invest their wages.
Depositing money offshore can allow employees to benefit from not paying income tax, only withdrawing as much money as needed, making disposable income go further.
Often the bank transfer charges are much lower than normal accounts, which also makes it easier for any employee dealing internationally.
Why don’t small to medium sized employers (SMEs) deploy employee benefits in Vietnam?
SMEs account for around 50% of all employment in Vietnam, whilst contributing at least 40% of the country’s GDP. Yet very few of these businesses invest in a proper employee benefits solution. Considering the shortcomings of social insurance, people who work all their lives can find themselves without any assets to enjoy at the end of it.
Whether employee benefits are conceived as too expensive, or decision makers just don’t understand the tangible benefits to be gained from investing in their employees’ well-being, the current reality is that most SMEs are missing an opportunity to distinguish themselves from their competitors.
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Standalone or bundled package benefits, including:
- Group Health Insurance
- Life Insurance
- Personal Savings Plans
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