Compensation and Benefits Trend in Asia Pacific
One of the major forces that will influence compensation and benefits over the next few years is the imbalance between demand and supply of talent. Demographic analysis show a reducing active workforce primarily due to continued aging of workforce population. Other HR issues like dearth of leadership pipeline and capabilities, attraction and retention of key talent, increased need to plan for retirement, new pension rules and legislation, as well as rapidly growing economy such as the threatening rise in oil prices will continue to impact compensation and benefits over the next few years.
In view of this, the companies should keep a watchful eye on market trends and continue innovating on C&B / total reward in order to be competitive in the market, for examples:
- designing new benefits;
- providing aggressive and innovative reward / incentive programs for top staff as well as selective functions such as sales and marketing;
- tailoring training and development programs.
Some of the impact of the changing business envinronment on employers’ compensation and benefits practices including:
- performance related pay / incentive pay in order to protect the organisation in an economic downturn environment.
- business process outsourcing in order to reduce costs, increase efficiency as well as to focus more on strategic initiatives.
- companies will increasingly customise benefits to meet each employee’s need to the maximum extent possible, for example cost sharing and co-payment at the claims level.
- both government and private sectors are to re-examine the current status of pension / retirement plans.
Therefore, HR should play a more strategic role in business in order to be in a stronger position to influence the business, to prepare the businesses for the future.
