Benefits Strategy Revisit must for Indian employers amid rising Talent Costs: Survey
Employers in India see risk and insurance benefits (51%), health benefits (51%), and career, training, and development (43%) as the most important benefits in their portfolios.
Amid Rising Talent Retention cost, Indian employers need to rethink benefits strategy- A WTW Survey confirmed
As an organization, talent retention strategy has different meanings for each company, but the goal is the same: to keep prospective talent in the organization. People leaders, on the other hand, undertake multifaceted initiatives to please talent. Instead of retaining people, these initiatives increase an organization’s overhead cost.
Employers confront a range of concerns as the cost of multiplexing rises, including fast rising benefits costs and difficulties engaging, attracting, and retaining essential personnel.
With a mental health crisis, rising living costs, and a growing emphasis on environmental, social, and governance (ESG) concerns and benefits inclusion, charting the proper road on benefits strategy is more difficult than ever.
A majority of Indian businesses surveyed by WTW ranked talent war and rising costs as top challenges driving employee benefit strategy in the modern world of work.
WTW provides data-driven, insight-led solutions in the areas of people, risk, and capital. Using a global perspective and local knowledge to improve organizational strategy, strengthen organizational resilience, motivate employees, and maximize performance.
According to WTW, the main issues impacting employee benefits strategy in the current year are competition for talent (65 percent), growing expenses (38 percent), flexible work arrangements (37 percent), and a focus on Inclusion & Diversity (I&D) (31 percent).
According to the 2023 Benefits Trends Survey, which included responses from 364 Indian businesses, which defines the benefit strategy factory for India.
Top factors influencing organization’s benefits strategy
- Competition for talent (65%)
- Rising costs (38%)
- Flexible work arrangements (37%),
- Focus on L&D (31%)
Key factors Impact benefits budget as responses by Approximately 40% of respondents
- Persistence of higher inflation
- Weak business environment
Misalignment in employee and employer expectations
Employers in India find most important benefits in their portfolios:
- Risk and insurance benefits (51%)
- Health benefits (51%)
- Career, training, and development (43%)
Other hand the employees are placing greater emphasis on:
- Retirement plan / long-term finances (33%),
- Financial wellbeing / short-term finances (29%)
- Flexible work arrangements (28%).
WTW’s 2023 Benefit Trends Survey examined the future direction of an organization’s benefits strategy:-
- How innovative solutions are used for old and new challenges.
- How employers are changing and adapting their benefits design, financing, administration, and analytics.
The poll was conducted between March and April of this year, with responses from a total of 5,233 firms representing 22.9 million employees from 95 markets worldwide.
Among these, 1,746 employers with 4.9 million employees are based in Asia Pacific. In India, 364 firms representing 2.1 million employees participated in the poll.
In addition, WTW India Head of Health and Benefits Vinod VK stated, “Economic factors, a difficult labor market, and tight budgets are compelling employers in India to rethink their benefits’ strategy while striking a balance between providing best in class benefits and dealing with rising costs.”
“Companies should invest time to identify benefits that appeal to each cohort and create a comprehensive Diversity, Equity and Inclusion (DEI) policy to address unique needs,” he stated.
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