In Malaysia’s fast-paced hospitality and retail industries, the ability to attract and retain the best employees is critical for success. In fact, the 2023 Benefits Trends Survey by WTW found that over four out of five employers in Malaysia consider talent competition to be the most important factor shaping their employee benefits strategy for 2023. As such, employers are committed to investing in top-notch benefits to attract top talent, even as costs continue to rise. This survey, conducted between March and April, gathered responses from 5,233 employers across 95 global markets, including Malaysia.
Employers in the Malaysian hospitality industry and the retail industry in Malaysia need to focus on a more innovative approach to enhance talent management strategies and change the way they attract and retain the best employees. As these sectors navigate growth and scalability in 2023 and beyond, there is an ardent need for streamlined employee benefits for the diverse hospitality sector and scalable benefits for the ever-evolving retail industry in the country.
This is where Mednefits steps in to make employee benefits in the hospitality and retail industry more streamlined, scalable, and cost-effective.
Businesses in the Malaysian hospitality and retail sectors are today faced with four key challenges, including high turnover rates, varied employment structures, the critical need for employee engagement, and cost management. High turnover rates have long disrupted operational continuity and customer service in these industries. Varied employment structures, including full-time, part-time, and seasonal workers, demand flexibility that traditional benefits packages struggle to provide. Engaging employees in these fast-paced and customer-centric environments is no small feat, but it's essential for productivity and customer satisfaction. And, of course, cost management is an ever-present concern, with businesses needing to contain costs without compromising on the quality of benefits they offer.
From crafting competitive benefits packages to engage employees and reduce turnover to offering flexibility in benefit structures that cater to diverse workforces, and providing cost-effective solutions without sacrificing quality – Mednefits is revolutionising talent management in Malaysia's hospitality and retail sectors.
The hospitality and retail industries often experience significant staff turnover, impacting operational continuity and customer service. Multiple studies and reports have shown that the services sector in general, especially the hospitality industry and retail has been facing high turnover rates for decades and this trend has surged further after the COVID-19 pandemic, which brought many overnight shifts in work environments, which neither the employers nor the employees were ready.
Mednefits provides tools to create competitive benefits packages, making employees more inclined to stay with their employers. These benefits, such as healthcare, can be a crucial factor in reducing turnover. In fact, according to the Mednefits 2022 employee benefits trend report conducted amongst 200 HR decision-makers from Singapore and Malaysia, the providence of employee benefits has been shown to generate greater employee engagement (52%) and to increase employee retention and attraction (49%).
One key component of Mednefits' toolset is the flexibility to remove workers in advance. This feature allows employers to proactively manage their workforce, ensuring that employees who may be considering resignation are identified, and appropriate retention strategies are implemented. By doing so, businesses can maintain operational continuity and minimise the disruptive effects of high turnover rates.
Additionally, Mednefits provides a tool to prorate employees' entitlement dollars. This means that benefits are allocated to employees on a fair and equitable basis, taking into account their tenure and contribution to the organisation. This added fairness in benefits distribution can foster a sense of recognition among employees and encourage them to stay with their current employer. Furthermore, Mednefits offers the option to implement cap restrictions to prevent employees from maxing out their entitlement and then resigning. This safeguards against potential abuses of benefits and promotes longer-term commitment from the workforce.
Hospitality and retail businesses employ diverse workforces, including full-time, part-time, and seasonal workers. It is important to understand that when it comes to employee benefits in these sectors, a one-size-fits-all strategy does not work because each employee has unique needs, preferences, and personal circumstances. Offering a variety of options that cater to a diverse workforce is critical since employee perks are essential for recruiting, retaining, and motivating employees. A single set of perks that do not satisfy the demands of all employees can cause discontent and raise the rate of employee turnover.
Mednefits empowers employers to offer the best of both worlds- traditional benefits and flexible solutions. This can help maintain costs while still providing employees with a comprehensive and flexible benefits package. One way to do this is to provide a set amount of money that employees can use to purchase traditional insurance policies, such as health, dental, and vision insurance, as well as other benefits such as gym memberships or transportation allowances.
One of the significant challenges faced by the hospitality industry in Malaysia is the inadequate manpower to effectively manage claims and reimbursement cycles for employees. This results in longer-than-ideal processing times, causing delays and frustrations for both the workforce and employers.
To address the challenge of insufficient manpower and the resulting delays in claims and reimbursement cycles, Mednefits offers a comprehensive set of solutions that automate and streamline these critical processes. For example, for an effortless administrative experience, tasks such as enrollment, claims updates, employee transfers, and pro-ration are automated, reducing the burden on administrative personnel and eliminating the need for big administrative teams. Also, with automatic employee notifications, the need for employees to inquire about the status of their claims is eliminated, further reducing the administrative workload and enhancing communication between employers and employees.
In the dynamic hospitality industry in Malaysia, efficient outlet management is another pressing challenge. Ensuring smooth operations, coordinating services, and optimising resources across various outlets can be a complex and time-consuming task. This challenge often requires effective solutions to maintain consistency and quality in service delivery.
Mednefits offers solutions that not only address the challenge of outlet management but also enhance benefits administration in the hospitality industry. Mednefits provides a platform that allows companies to monitor employees' benefits usage in real-time. This real-time tracking extends from the company level down to individual employees, all within a single portal. This feature not only enhances transparency but also helps prevent abuse and overspending on benefits, ensuring that the allocated resources are used effectively. Additionally, Mednefits' platform centralises benefits management, making it easier for hospitality businesses to oversee benefits for employees across various outlets. This centralised approach streamlines benefits administration reduces duplication of efforts, and ensures consistency in the benefits offered to employees across different locations.
As Malaysia’s hospitality and retail industries evolve and adapt in the years to come, one thing is for certain: finding the right employee benefits will remain a critical factor in successfully attracting and retaining the right talent. While it can be difficult to strike a balance between cost and effectiveness, Mednefits is a life-changing platform that can help employers find their middle ground with its flexible offerings and cost-effective solutions.
Find out how Mednefits can help your company boost talent acquisition and retention with the right benefits packages that serve your organisation. Schedule a demo today so you can get started on a new and improved employee benefits package that is streamlined and tailored just for you and your team.