‘Workers health schemes vital’
New Straits Times Online, 2 May 2014
MIND-SET SHIFT: More benefits will help companies attract and retain talent, says Mercer Marsh Benefits
EMPLOYEE benefits consultant Mercer Marsh Benefits is calling Malaysian businesses to recognise the importance of employee health programmes in ensuring a sustainable pool of talent within an organisation.
According to the Asia Total Health and Choice in Benefits 2013 survey, 76 per cent of local companies do not offer eligible employees some choice in benefits, with complexity of administration and perceived cost of implementation as the top barriers.
Mercer Marsh said by delaying the rollout of choice programmes, companies may be missing out on an opportunity to attract, engage, and retain talent, especially from the younger generation.
“A high percentage of companies across the region, including Malaysia, are not investing aggressively enough into health management programmes,” saidits employee health and benefits regional leader for Asia, Joan Collar.
“Many of these companies are cost-conservative, don’t understand the root health causes and lack the resources to implement viable long-term programmes,” she said.
Collar said employers in Malaysia have yet to draw a meaningful parallel between employee health benefits and the overall operating costs.
The mind-set shift for change has reached a critical juncture as the need to create greater value from existing benefits to attract and retain talent and simultaneously control cost is now critical.
“The goal is to reach a balance between optimising health and well-being benefits while managing cost,” she told Business Times in an interview, here, recently.
According to reports, the number of unhealthy, high-risk employees continues to rise, with employers beginning to feel the impact of corresponding significant increases in their direct and indirect health costs.
This, Collar said, has resulted in companies being under pressure to cut costs, while adapting to rapidly changing health and benefit environments.
“Surprisingly most companies don’t have the data to understand and help control their costs. Better use of data will help them manage costs more effectively.
“Companies need to have comprehensive data of their employees to better understand what they want and their thoughts.
“Otherwise, one fine day you wake up and find your talent leaving the organisation because you have no idea what the employees were thinking about,” Collar said.
In Malaysia, employers are moving “slowly but steadily” towards an increased focus on wellness, in line with various initiatives outlined by the government, which increase the obligation of corporate healthcare provision and make management of healthcare costs a priority.
Some of the challenges in addressing this issue include finding vendors that can provide wellness services on a global or regional basis and poor infrastructure, said Collar, adding that these can be overcome with a commitment to organisational health and wellbeing.
“This strategy will not only enable employers to manage their costs, but also drive employee health, engagement and productivity over the long run,” she said.
