Externally, with inflation soaring
2015: 2.2%, 2016: 2.3%, 2017: 2.1%, 2018: 2.3%, 2019: 2.5%, 2020: 2.6%, 2021: 2.1%, 2022E: 4.6%
Source: Economist Intelligence Unit (EIU)
Consumer Price Index (CPI) Asia and Australasia (% change)
And medical costs to climb
Also internally, with employers feeling the crunch
First, plug the leaks
Renegotiate and redesign
38% of employers derive value from the benefits they pay for.
Action: Ensure robust brokerage strategy leveraging complimentary services and bargaining power.
Do you benchmark?
55% will prioritise benchmarking over next two years.
Action: Ensure your benefits are competitive, but not unnecessarily expensive.
Analytics
59% consider analytics, insights and reporting a key focus for the next two years.
Action: Understand claims ratio trend against market premium and review utilisation to optimise value of investment.
Improve efficiency
47% see greater efficiency in the use of internal resources as a key objective.
Action: Use technology to improve administration and communication.
Finance your benefits
44% state that costs are one of the top external influences on benefits strategy.
Action: Multinationals can manage costs through use of a captive or a pooling network.
Develop specific care pathway
55% are looking at care navigation to positively influence employee behaviours.
Action: Analyse claims to explore the most appropriate and cost-efficient intervention for high-frequency or high-cost conditions.
Listen to your people
44% of employees consider listening strategy a priority to improve their benefits.
Action: Include regular employee listening in benefits management and to shape the launch of benefits and future changes.
Enhance EX, communication and technology
51% of employers say improved employee experience (EX) is a key measure of success for their benefits strategy.
Action: Create a smooth EX and boost employees’ value of their benefits through effective communications and technology.
Note: Compared to high achievers and doing well employees
Sources:
2021 Benefit Trends Survey – Asia Pacific
2022 Global Medical Trends Survey – Asia Pacific
2022 Global Benefit Attitudes Survey – Asia Pacific