Employees need more than monetary benefits

by LYDIA NATHAN / pic by MUHD AMIN NAHARUL

MONETARY benefits are no longer the main attraction for job seekers to join certain companies or for employees to stay long with their employers.

According to Randstad Employer Brand Research 2019 Malaysia Country Report survey, monetary and non-monetary benefits have proven to be equally important for employees looking for jobs and it can help sustain a company which maintains a professional balance.

Mednefits chief happiness officer Hadiyanto Wibawa said while 64% of respondents in the survey were influenced by attractive salaries and benefits, 49% wanted a healthy work-life balance.

He said the demographics among the different generations also influenced the results, with 44% looking at strong management, 41% focusing on career advancement and 39% wanting a good work culture.

“The bulk of it is from non-monetary points while employers may think providing for monetary basis alone is important. But understanding the whole approach and looking at how to leverage that is a vital component,” he said at the Benefits Matter: What Employers Should Prioritise webinar yesterday.

He added that the needs and wants of employees varied across four main groups, the Baby Boomers, Gen-Xers, Millennials and Gen-Zers.

“For example, Baby Boomers may prioritise good financial health of the organisation, while Millennials are looking for career progression opportunities. This is why a more holistic and overall approach must be looked at,” he said.

According to Hadiyanto, the main criteria employers look at when hiring or re-hiring is the cost of employee turnover, which can be quite costly.

“The entire hiring expense combined with training and development needed, as well as productivity loss during the transition can actually cost from 20% to 500% of the person’s salary who has left.

“It can also affect the morale of other employees which could result in a productivity drop. This is why employers must ensure the turn-over stays low,” he said.

Hadiyanto said some of the benefits people are looking for in today’s day and age include medical benefits, optical, transport, food and an option to work from home during Covid-19.

Meanwhile, he said there are notable gaps between what employees need and what is being provided to them, which should be addressed with importance.

He said the Human Resources (HR) department actually plays an important role in creating a seamless form of interaction between employers and employees.

“HR actually said 61% of employees prefer using mobiles to access benefits, rather than a manual process which can be time-consuming.

“Another 40% want to use a preferred panel of medical network services, because of medical inflation to ensure the quality care is there,” he added.

Hadiyanto also said Malaysia is currently experiencing the second-highest medical inflation rate in the Asia-Pacific region.

“Ideally, HR wants to cater to the needs and wants of different generations, and make sure it works well. The only way to do it is to leverage on platforms, as businesses grow and employees grow larger.

“Now is a good time to strategise and plan the next decade of growth,” Hadiyanto added.