"Is offering competitive salary, promotion or increments the only way to retain and attract talents?"
What if the answer is 'no'?
What if there are dozens of other ways — more budget-friendly and practical — to attract new talents and keep your employees?
That's exactly what you'll discover here.
Plus, you'll find out:
Let's jump right in.
Before we get into the details, let's start with the basics.
Employee benefits are compensations or rewards that reimburse your employees on top of their base salary. Some benefits are made mandatory by the Employment Act 1955, such as annual leave, sick days, working hours, etc.
Any other benefits are considered optional such as insurance, retirement plan options, training, and many more. This area is where companies utilise their creativity to develop outstanding benefits to win the talent war.
But why would companies in Malaysia use nearly one-third (30.67%) of their total yearly expenses on benefits?
Because Malaysian employees are unhappy in general.
A survey by Hays Malaysia found that 46% of employees in Malaysia were dissatisfied or very dissatisfied with their current compensation packages, the highest in Asia.
As a result, 52% of Malaysian employees are actively seeking a new job.
But here's where things get fascinating.
Conversely, salary is not seen as the top attractor for employees.
What actually keeps them in your company are:
If this doesn't make any sense to you, let us explain why this is happening. It goes back to our psychology of money.
We all need a specific amount of money to live the lifestyle we want. Some of us need RM5,000 a month to live a comfortable life. Those with family may need more, like RM15,000.
But the thing with money is, once we've reached the amount we wanted, any more doesn't make us happier. It's just more money in the bank.
What makes us happier is work-life balance, relationships, family, autonomy, freedom, love, and more.
This is why once those 52% of Malaysian employees have found a salary that supports their lifestyle, the next thing they automatically crave is work-life balance, personal and professional development, time, relationships, etc.
Companies need to understand that salary is not the #1 benefit anymore. There are so many other areas of your employee's life that you can support.
The good news? A lot of companies in Malaysia are waking up.
Besides the mandatory benefits, they are also offering a lot more optional benefits, such as:
To answer this question, it's worth finding out what employee benefits the top 3 winners of the Most Attractive Employer of 2021 offer.
Shell, Nestle, and Intel.
Randstad reported that the top 5 reasons why Shell, Nestle, and Intel won the award are:
Clearly, attractive benefits are one of the top priorities for employees.
But is there a specific set of benefits these companies have in common?
The answer is "Yes".
Even better, it's not rocket science, and every company is capable of following in their footsteps.
The employee benefits that Shell, Nestle, and Intel have in common are:
Shell, Nestle, and Intel are huge companies with big budgets. But that doesn't mean other companies can't have attractive benefits.
You don't have to strain your budget to get a long list of benefits.
It is more about listening to your employees' needs and finding out what benefits they need most to support their lives and family.
Your employees' need is the best employee benefits to help you attract and retain your best talents.
We have curated 3 resources to help you enhance your employee benefits: